11th Nov 2009 07:00
11 November 2009
Pre-Close Trading Update
Micro Focus International plc
Pre-close period update for the six months to 31 October 2009
Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L) announces that following a strong close to the first half of the financial year to 30 April 2010, the Group expects to report total revenues of approximately US$195.0m (2009: US$135.6m) for the period. Group EBITDA, excluding exceptional items and stock based compensation, for the same period, is expected to be ahead of previous expectations at approximately US$75m (2009: US$57.9m), representing a margin of approximately 38%. At constant currency, excluding the recently acquired Borland Software Corporation and the Compuware Testing/ASQ business, and including revenue contributions from FY2009 acquisitions NetManage, Liant and Relativity for the full half year, revenue growth of the base business is approximately 9%, as compared to the same period in H1 FY2009. Micro Focus expects to report directly comparable revenue growth in the region of 5%.
The recent Borland and Compuware acquisitions have been integrated rapidly as planned and performed ahead of expectations, both in terms of revenue and EBITDA. The twelve month run rate revenue contribution for these businesses is now expected to be $160m, approximately $10m ahead of previous guidance. The Group also materially updates the combined EBITDA margin expectations for these acquired businesses, anticipating 30% for the first full year of ownership compared to previous guidance of 15%. This is as a result of improved revenue expectations and larger and accelerated reductions in cost.
Cash generation remains strong and reduction of the net debt position is ahead of schedule with a US$16m repayment in October. Net debt at the end of the first half was approximately US$104m.
Kevin Loosemore, Non-Executive Chairman of Micro Focus, commented:
"Micro Focus has delivered continued growth in its business over the first half year with a strong progression in the second quarter performance, as compared to the first quarter of the year. In addition, the Borland and Compuware integrations are ahead of schedule."
"We are encouraged by the continued margin progression and, in particular, relating to the recent acquisitions. We enter the second half confident in the Group's ability to deliver superior shareholder returns."
Further details will be provided in the interim results statement for the half year to 31 October 2008 to be announced on 9 December 2009.
Enquiries:
|
Micro Focus Tel: +44 (0)1635 32646 |
|
Nick Bray, Chief Financial Officer |
|
Tim Brill, IR Director |
|
|
|
Financial Dynamics Tel: +44 (0)20 7831 3113 |
|
Charles Palmer |
|
Haya Herbert-Burns |
|
Nicola Biles |
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
Related Shares:
MCRO.L