10th Aug 2011 07:00
10 August 2011
Micro Focus International plc
Interim Management Statement for the period from 30 April 2011 to 10 August 2011
Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) provides its Interim Management Statement for the period from 30 April 2011 to the date of this statement. Financial performance as described relates to the three month period ended 31 July 2011.
Trading ahead of Board expectations
Total revenues in the three months to 31 July 2011 were ahead of the budget approved by the Board on 14 April 2011 and similar to the prior year comparative period on a constant currency basis. The restructuring activity undertaken in the final quarter of last financial year resulted in costs being lower than the comparable period. As a result of these factors, Adjusted EBITDA was also better than the Board's expectations.
Financial position
After taking account of the $15m cash paid in acquiring the Group's headquarters building in Newbury and the cash outflow of $6.4m relating to the restructuring charges of $19m that were unpaid at 30 April 2011 the Group had a net cash position at 31 July 2011 of $0.8m. This compares to a net debt position of $14.9m at 30 April 2011 demonstrating further strong cash generation during the period.
If approved by shareholders at the AGM in September, the final dividend of 16.2 cents per share will be paid out at the end of September at a cost of approximately $32m. The full year dividend for the year ending 30 April 2011 would then be a total of 23.4 cents per share.
Offer Period update
The Group remains in an offer period and the Board continues to explore the potential to deliver value to shareholders through a transaction more quickly than is likely through the continued operational turnaround of the business. The Board believes that there is merit in continuing the current discussions, although there can be no certainty that an acceptable offer will be forthcoming, nor as to the timing of any such offer.
Outlook
Due to the continuing offer period the Board is making no changes to the Company outlook for the current year to that stated in the preliminary audited results for the year ended 30 April 2011 issued on 23 June 2011.
Kevin Loosemore, Executive Chairman of Micro Focus International plc, commented:-
"It is almost four months since my appointment as Executive Chairman of Micro Focus. I am pleased with the progress we are making and the performance in the 1st quarter. I am increasingly confident that there is significant untapped value in the business which can be realised by delivering the proposed operational turnaround and this is the primary focus of the management team. At the same time we continue to explore the possibility of a transaction consistent with the underlying value of the business to deliver that value to shareholders more quickly."
An analyst conference call will be at 9.00am this morning. Details are as follows:
Dial in detail: +44 (0)1452 569 393
Access code: 90884466
Enquiries:
Micro Focus Tel: +44 (0)1635 32646
Kevin Loosemore, Executive Chairman
Mike Phillips, Chief Financial Officer
Tim Brill, IR Director
Financial Dynamics Tel: +44 (0)20 7831 3113
Charles Palmer
Clare Thomas
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 and Management 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
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