Micro Focus International plc Trading update and Strategic review (5252K)
August 29 2019 - 2:00AM
UK Regulatory
TIDMMCRO
RNS Number : 5252K
Micro Focus International plc
29 August 2019
29 August 2019
Micro Focus International plc
Trading update and Strategic review
Micro Focus International plc ("Micro Focus" or "the Group",
LSE: MCRO.L, NYSE: MFGP), the international software product group,
is today providing a trading update for the 12 months ending 31
October 2019 and revising its guidance for the full year.
The Board has concluded that recent trading means that the Group
does not expect to meet the constant currency revenue guidance of
minus 4% to minus 6%, for the full year to 31 October 2019,
compared to the 12 months ended 31 October 2018. Weak sales
execution has been compounded by a deteriorating macro environment
resulting in more conservatism and longer decision making cycles
within our customer base. There remains a significant pipeline of
business opportunity being pursued but to be within the current
guidance range a highly challenging percentage of this pipeline
would need to close prior to year end. As such the board considers
it appropriate to revise the guidance range for the year ending 31
October 2019 to minus 6% to minus 8%.
Against this backdrop the Board has decided to accelerate a
strategic review of the Group's operations. This review will focus
on what in addition to execution improvements are required to
optimise the value of our broad portfolio of products and it will
consider a range of strategic, operational and financial
alternatives available to the Company.
Stephen Murdoch, Chief Executive Officer, said: "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."
Enquiries:
Micro Focus Tel: +44 (0)1635 32646
Kevin Loosemore, Executive Chairman Investors@microfocus.com
Stephen Murdoch, CEO
Brian McArthur-Muscroft, CFO
Ben Donnelly, Investor relations
Brunswick Tel: +44 (0) 20 7404 5959
Jonathan Glass MicroFocus@brunswickgroup.com
Craig Breheny
Eden Yates
Notes to Editors:
About Micro Focus
Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise
software company supporting the technology needs and challenges of
the Global 2000. Our solutions help organizations leverage existing
IT investments, enterprise applications and emerging technologies
to address complex, rapidly evolving business requirements while
protecting corporate information at all times. Our product
portfolios are Security, IT Operations Management, Application
Delivery Management, Information Management & Governance and
Application Modernization & Connectivity. For more information,
visit: www.microfocus.com
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of this information may apply. For further information, please
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END
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