Steady as she goes at Micro Focus

Legacy software specialist Micro Focus International had mixed news for the market on the revenue front but half year earnings have been better than market forecasts.

Revenues in the six months to the end of October were in line with market expectations and previous guidance issued by the group while adjusted earnings before interest, tax, depreciation and amortisation were ahead of market expectations.

On a constant currency basis, both Licence Fee Revenues and Maintenance Fee Revenues were at the same level in the reporting period as last year, and the aggregate of these two revenue types is above market expectations. Consistent with the strategy of the group, Consultancy Fee Revenues are significantly below last year, and are below market expectations.

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Net debt at the end of October was down to $96.2m from $113.2m but the group reminded shareholders it is about to return $129.3m (50p per share) to them on November 12th.

JH