Mainframe modernisation specialists Micro Focus International surprised the City with a set of forecast-beating half-year results alongside a 45p special dividend, signalling that the group may well be on the road to recovery.
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With a recently installed management team working to turn the company around, the group managed to grow sales 1.6 per cent to $219.1m ($140.3m), with pre-tax profits rising 20 per cent to $75.8m thanks to stronger margins.
Strategically, the group are focusing on software products and chairman Kevin Loosemore is expecting licence fee growth in the current year to offset anticipated declines in maintenance and consulting revenues. Focus will also be on cash generation, and margin protection.
