Micro Focus updates legacy computer systems - and particularly those using Cobol, one of the oldest programming languages. Although, with these half-year figures, the group reported that like-for-like sales, on a constant currency basis, has actually fallen 4.8 per cent year-on-year. What's more, the group's cash margin fell 3.3 percentage points in the period to 36.6 per cent.
Still, Micro Focus' development, modernisation and migration revenue did rise 3.4 per cent in the period, to $145m (£91m). That helped offset an 18.2 per cent pro-forma sales decline, to $70.3m, from the application management and quality software operation. That latter fall followed the takeovers of both Borland and the ASQ division of Compuware and the new management team - led by chief executive Nigel Clifford - now blame such past deal-doing for having adversely affected revenue growth in the current financial year. Accordingly the strategic focus is now to grow organically, generate cash to invest in the business and possibly make selective acquisitions that "enhance growth or increase the size of the group's addressable market."
Panure Gordon expects underlying full-year pre-tax profits for fall from $160.9m to $160.1m, with adjusted EPS set to fall from 57.3¢ to 55.6¢.
MICRO FOCUS INTERNATIONAL (MCRO) | ||||
---|---|---|---|---|
ORD PRICE: | 402p | MARKET VALUE: | £827m | |
TOUCH: | 401-401p | 12-MONTH HIGH: | 550p | LOW: 272p |
DIVIDEND YIELD: | 3.7% | PE RATIO: | 13 | |
NET ASSET VALUE: | 118c* | NET DEBT: | 17% |
Half-year to 31 Oct | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2009 | 198 | 38.8 | 14.1 | 5.6 |
2010 | 216 | 63.2 | 26.9 | 7.2 |
% change | +9 | +63 | +91 | +29 |
Ex-div: 5 Jan Payment: 28 Jan *Includes intangible assets of $389m, or 189¢ a share £1=$1.59 |