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TOP NEWS: Micro Focus Backs Outlook As SUSE Sale Lifts Interim Profit

(Alliance News) - FTSE 100-listed Micro Focus International PLC on Tuesday left its annual ...

Alliance News 9 July, 2019 | 8:59AM
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(Alliance News) - FTSE 100-listed Micro Focus International PLC on Tuesday left its annual guidance unchanged, as interim profit swelled following the sale of its SUSE business.

For the six months ended April 30, revenue came in at USD1.66 billion, down 7.5% from USD1.79 billion the year before.

The drop in revenue was offset by a reduction in administrative expenses to USD366.7 million from USD448.4 million and a slight fall in research and development expenses to USD250.5 million from USD254.4 million.

Profit for the period after tax surged to USD1.40 billion from USD619.7 million the year before, following the sale of its SUSE software business.

The company said the SUSE separation and disposal was delivered on schedule resulting in a USD1.7 billion profit on disposal and USD1.8 billion returned to shareholders.

From continuing operations Micro Focus posted a pretax loss USD99.6 million, in line with the USD100.9 million loss the year before.

The discontinued operation was Micro Focus's SUSE open-source enterprise software business, which was sold for a total cash consideration of around USD2.5 billion in March 2019 to a subsidiary of EQTVIII SCSp, which is advised by private equity firm EQT Partners.

The company maintained its interim dividend at 58.33 US cents.

Chief Executive Stephen Murdoch said: "We have made steady progress this half year, delivering against our financial and operational commitments and doing what the company does best: making, selling and supporting infrastructure software solutions that customers value and rely on. Micro Focus helps customers around the world to drive further returns from their existing investments while also taking advantage of new technologies and innovations to support their digital transformation.

"We have continued to make progress on our significant program of work to fully integrate the HPE Software business through the sustained application of the Micro Focus business model. As a result, we are pleased to reiterate full-year guidance."

Shares in Micro Focus were down 1.9% at 2,057.50 pence on Tuesday morning in London, but are up 57% so far in 2019.

By Anna Farley; annafarley@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Micro Focus International PLC 1,012.40 GBX 0.00 -

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Alliance News

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