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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Micro Focus tumbles after first half growth decline

There was no change to expectations for revenue, costs or cash for the full year

Micro Focus International PLC (LSE:MCRO) shares tumbled after half-year revenues declined more than expected.

The FTSE 250-listed legacy software giant reported revenue of US$1.27bn for the six months to 30 April, down 11% year-on-year and below the US$1.32bn that analysts expected.

Underlying earnings (EBITDA) fell 12% to US$449mln.

"Several sub-portfolios are now delivering consistent growth not yet visible at a product group level," the company said, but it anticipates this will deliver "overall growth" ahead of schedule.

Free cash flow grew 36.2% to US$190mln.

Management said there was no change to expectations for revenue, costs or cash for the full year and that work was underway "to mitigate the increased risks arising from the macro-economic environment".

"Our strategic priorities for FY23 exit trajectory remain unchanged."

The shares fell 13.78% to 308.4p in the first hour of trading.

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