Shares of Micro Focus International plc (LON: MCRO) today surged 28.2% after the software company announced that it expects margins for the past financial year to be at the higher end of the management’s expectations.
According to the company’s latest trading update covering the 12-month period ended October 31, it expects to report an adjusted earnings (EBITDA) margin of around 39%, while revenues are set to fall 10% on an annualised bases to $3 billion.
Micro Focus noted that revenues during the second half fell 9% as compared to an 11% decline during the first six months of its financial year as the firm took measures to improve its underlying operations.
However, the firm, which helps customers maintain and integrate legacy IT technology, noted that the macroeconomic environment remains uncertain with the long-term effects being hard to predict, hence, it was reviewing its final dividend.
Stephen Murdoch, Micro Focus’ CEO said: “We are now nine months into our three-year turnaround plan for the Group and whilst there remains a great deal to do I am pleased with progress in both overall operational effectiveness and in the delivery of our key strategic objectives,”
“Cash generation and working capital management remain strong, the investments we've made are showing encouraging early results and we continue to see a clear, ongoing customer need for our solutions and approach to digital transformation.”
Micro Focus Intl share price
Micro Focus shares today surged 28.2% to trade at 348.5p having risen from Tuesday’s closing price of 271.7p.