Shares in FTSE 250 software firm Micro Focus International (LON:MCRO) plunged by 14.56% to 374.82p (as of 14:10 BST) as revenues for the six months ended 30th April dropped by 12.2%. The company booked a loss for the period, in part due to a substantial non-cash write-down due to increased economic uncertainty. Management said that they don’t expect macro conditions to improve during the second half and expect continued pressure on new sales and renewals.
CEO Stephen Murdoch commented: “I am proud of our employees’ resilience and professionalism throughout the unprecedented disruption caused by the COVID-19 pandemic. Micro Focus’ business continuity plans have been highly effective and we continue to adapt our working practices to continue supporting our customers and partners. Our performance during the period has been consistent with our guidance and the successful refinancing of our debt despite the challenging market conditions demonstrates confidence in the underlying strengths of our model. Going forward, we see significant opportunities to improve our business and we will continue to progress initiatives to strengthen and simplify our business operations, and stand ready to take further actions if required in these uncertain times“.