6th Apr 2006 07:01
Micro Focus International plc06 April 2006 Embargoed for 7.00am, 6 April 2006 Micro Focus International plc Cost reduction programme announced and trading in line Micro Focus International plc ("Micro Focus", "the Company" or "the Group"; LSE: MCRO.L) announces a cost reduction programme and confirms that tradingcontinues to be in line with management's expectations for the financial yearending 30 April 2006. Since its update on trading on 23 February 2006, the Board has identified anumber of potential cost savings which are expected to reduce Group fixed costsby approximately $10m in the financial year to 30 April 2007. This is expected to result in a one-off charge of approximately $6m - $8m whichwill be recorded in the current financial year ending 30 April 2006. The cost reduction programme, which will start immediately, has been designed toimprove overall returns, while maintaining the fabric of the business and theCompany's sales capability. Kevin Loosemore, Chairman and acting CEO of Micro Focus, commented: "In our trading update in February, we emphasised our commitment to rebuildingmomentum and delivering on sales execution. In working towards this, we haveidentified the potential to reduce our fixed costs whilst still supporting ourfuture prospects. "We are keen to implement the programme immediately. We are encouraged by theprogress being made at Micro Focus and confirm that trading in the current yearcontinues to be in line with our expectations." Contacts: Micro Focus International plc +44 (0) 1635 32646Kevin Loosemore, ChairmanNick Bray, Chief Financial Officer Financial Dynamics +44 (0) 20 7831 3113Giles SandersonHarriet Keen This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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