Micro Focus tanks as revenues plunge

FTSE 250 software and IT provider Micro Focus (LON:MCRO) saw its share price plummet 21.13% to 778.10p (as of 15:55 GMT) as revenues for the 12 months ended 31st December from continuing operations fell by 29.6%.

CEO Stephen Murdoch commented: “This has been a challenging year for Micro Focus and our overall financial performance fell short of expectations. As a result, we conducted a Strategic & Operational Review, which has identified the additional actions and changes required to deliver on the significant potential within the business. Successful execution of these actions, will position Micro Focus to deliver against our goal of consistent and sustained value creation for customers, shareholders and employees.”

“Kevin joined Micro Focus in 2005 to lead the IPO. Under his stewardship the Company has grown from a small, single portfolio company with revenues of roughly $100m to a multi-billion dollar software business supporting more than 40,000 customers globally and from 2005 to January 2020 delivered compound annual returns to shareholders of approximately 20%. On behalf of the whole Micro Focus team, the board and personally, I would like to thank Kevin for his leadership and vision in building the Micro Focus business over 15 years“.