30th Nov 2021 15:42
(Alliance News) - Micro Focus International PLC on Tuesday outlined its transformation plan and guidance while also reflecting on its progress in the year to date.
Shares in the Newbury, England-based company were down 7.2% at 349.50 pence each on Tuesday afternoon in London.
The software and information technology firm said it was currently improving its product proposition by repositioning its portfolio to ensure it is better focussed on growth opportunities.
Mirco Focus asserted that the company is already "executing well" where repositioning is complete and adds that where work continues, actions are "progressing as planned."
The company also restructured its go-to-market organisation "to prioritise and align resources with greater specialist skillsets and consistency of execution".
The company listed a flat or better year-on-year revenue trajectory for the exit out of 2023 as one of its financial goals.
Furthermore, Mirco Focus said its aim was to remove USD400 million to USD500 million from its annual reoccurring cost to achieve an exit cost base of GBP1.5 billion to GBP1.6 billion in 2023 from GBP1.9 billion in 2021.
The technology firm also said it would aim to achieve an equity-free cash flow of USD500 million by the end of 2023 and a medium-term growth target of 1-2%.
"We have robust, granular plans for the next 2 years that give us the confidence to achieve our core financial objectives as we exit financial year 2023, and a strong foundation from which to execute thereafter, " Chief Financial Officer Matt Ashley said.
By Abby Amoakuh; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
MCRO.L