Micro Focus statement buoys shares

FTSE 250 software and IT firm Micro Focus International (LON:MCRO) watched its share price soar by 30% to 353.20p (as of 13:00 GMT) despite revenues for the year ended 31st October falling by around 10%. Management said that EBITDA margins were at the upper end of the forecast range and that cash flow remained strong.

CEO Stephen Murdoch commented: “We are in extraordinary times as a result of COVID-19 and I must take this opportunity to express my sincere thanks to our employees for how they have adapted to the challenges presented and ensured we stay focused on delivering for our customers.

“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.

“I am confident we are making the changes and building the foundations necessary to continue to make progress in the delivery of our plan.“