Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Micro Focus International shares fall 11% after it sounds alert over HPE Software revenues

"Whilst the short term decline in licence [revenue] is disappointing it is not unusual given the level of change being undertaken," said chairman Kevin Loosemore
Micro Focus International shares fall 11% after it sounds alert over HPE Software revenues
Revenues have fallen around 10%

Shares in Micro Focus International (LON:MCRO) fell 11% after it said software revenue at Hewlett-Packard Enterprise, the US company it is buying for £6.8bn, was down around 10% for the year.

The company is currently implementing an efficiency programme at HPE and early progress has been “encouraging”, according to chairman Kevin Loosemore.

"Whilst the short term decline in licence [revenue] is disappointing it is not unusual given the level of change being undertaken," he added.

CLICK HERE to sign up to the Proactive daily newsletter

Having received the necessary regulatory sign-offs, Micro Focus expects the takeover of HPE Software to complete in September – a full year after the deal was first announced.

Micro Focus said it would convene a general meeting to request approval of the transaction shortly.

Shareholders will also be asked to rubber-stamp a £386mln return of cash – which equates to £1.61 a share.

At 8.30am the shares were down 311p at £23.28, valuing the business at £5.5bn.

View full MCRO profile View Profile

Micro Focus Timeline

Related Articles

Cloudbuy's online purchasing portal
April 18 2018
"We remain convinced that we have a unique product and a great partner in NHS Shared Business Services to maximise the roll-out of PHB's and Integrated Commissioning across Health and Social Care," the company said.
Apps on a smartphone
July 06 2018
“As of today, appScatter tracks 1.2bln app URLs, from 10.7mln apps and 2.9mln publishers,” chairman Clive Carver told shareholders at the AGM in June
July 17 2018
KeyDrive develops and operates software platforms to operate domain names

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use