Micro Focus shares suffer on sales news

The price of shares in FTSE 100 software company Micro Focus International (LON:MCRO) dropped by 28.48% to 1,112.43p (as of 13:50 BST) after the company warned that it would not meet revenue guidance for the year ending 31st October. Management said that weak sales execution and a difficult macro environment have led them to revise their already negative forecasts further downwards.

CEO Stephen Murdoch commented: “Following the recent disappointing trading performance, we have determined that it is appropriate to accelerate the undertaking of a strategic review of the Group’s operations with a view to determining where performance can be improved and how the business can be better positioned to optimise shareholder value. We are fully committed to meeting the needs of our customers through the ongoing delivery of innovation within our exceptional product portfolio. Whilst the review is taking place management will continue to drive previously targeted improvements in business performance and execute the operational initiatives already in place“.