16th Aug 2012 07:00
16 August 2012
Micro Focus International plc
Interim Management Statement for the period from 30 April 2012
and proposed cash return to shareholders of 50 pence per share
Micro Focus International plc, ("Micro Focus" or "the Group", LSE: MCRO.L) the Enterprise Application Modernisation and Testing software company, provides its Interim Management Statement for the period from 30 April 2012 to the date of this statement and announces a proposed return of value to shareholders of 50 pence per share.
Trading update
Adjusted EBITDA in the period to 31 July 2012 was in line with management expectations and with the same period last year on a constant currency basis. Revenue in the comparative period benefited from a large one-off licence transaction in the test business. If this were excluded, constant currency revenue has followed the pattern expected with underlying growth in licence fees and decline in maintenance and consulting. Management's guidance for the full year remains unchanged from that given in the preliminary results for the year ended 30 April 2012 issued on 21 June 2012. At that time Micro Focus provided guidance that overall revenues in the current year ending 30 April 2013 would be in the range of +1% to -3% on those reported in the year ended 30 April 2012 on a constant currency basis.
Reported revenues in the current year will be impacted by exchange rates, primarily due to weakness in the Euro:$ exchange rate. If the exchange rates experienced in the year to date were to continue for the remainder of the year then on a constant currency basis, the comparative reported revenues for the year ended 30 April 2012 would reduce from $434.8m to $422.2m.
Underlying Adjusted EBITDA is anticipated to be in the previously announced guidance range of 37% to 42%.
Net Debt Position
The Group's net debt position at 31 July 2012 was $90.4m (30 April 2012: $113.2m) demonstrating further good operational cash generation during the period.
Proposed cash return of value to shareholders
Consistent with the Board's policy of delivering value to shareholders, Micro Focus proposes to return a further 50 pence per share to shareholders, equivalent to approximately $130m in cash and subject to their approval, by way of a B and C share scheme. The return of value will be accompanied by a proportional share consolidation to maintain broad comparability of the share price and return per share of the ordinary shares before and after the return of value. A Circular will be sent to shareholders shortly outlining the terms of the return of value and we anticipate that if shareholder approval is obtained, then the return of value will be completed in early November. The return of value will be funded from the Group's existing debt facilities.
To provide further details on the return of value to shareholders, Micro Focus will host an analyst conference call at 8.00am this morning. Details are as follows:
Dial in detail: +44 (0)1452 555566
Access code: 21681828
Enquiries:
Micro Focus | Tel: +44 (0)1635 32646 |
Kevin Loosemore, Executive Chairman | |
Mike Phillips, Chief Financial Officer | |
Tim Brill, IR Director | |
Powerscourt | Tel: +44 (0)20 7520 1446 |
Giles Sanderson | |
Nick Dibden | |
Sophie Moate |
Notes to editors:
About Micro Focus:
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization, Management and Testing software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com
Related Shares:
MCRO.L