Micro Focus reports positive quarterly results

Micro Focus is confident about its fourth-quarter prospects

Micro Focus achieved positive third-quarter results and says it is confident about full-year business performance.

The enterprise application modernisation and testing software company reported an improvement in organic revenue growth in the three months to 31 January, compared with the first six months of the fiscal year.

In its interim management statement, Micro Focus said its earnings before interest, tax, depreciation and amortisation (EBITDA) would improve on the first half's 39 per cent.

This means a full-year margin of approximately 40 per cent. Chairman Kevin Loosemore added that customer pipeline for the fourth quarter was “solid”.

“The group continues to perform well in generating cash and we are making good progress in repaying existing debt. The board remains confident in the group’s ability to deliver superior shareholder returns," he added.

The supplier said its search for a new chief executive was “progressing well”. Its previous head, Stephen Kelly, suddenly stood down in September after a three-year stint at the company.