Micro Focus International plc (LON: MCRO, NYSE: MFGP), the international software product group, announced today it’s unaudited interim results for the six months ended 30 April 2019.
Key highlights:
· Revenue performance in line with guidance and full year guidance maintained at minus 4% to minus 6% on a constant currency (“CCY”) basis.
· SUSE separation and disposal delivered in line with timetable resulting in a $1,727.2m profit on disposal and $1,800.0m returned to shareholders.
· Adjusted EBITDA margin1 increased 2.8ppt to 40.0% on a CCY basis.
· Transformation programmes remain on target for completion in 2020.
· Strong cash performance, with Adjusted Cash Conversion1 of 115.1% (30 April 2018: 96.1%) and free cash flow1 of $429.9m in the six months ended 30 April 2019 (30 April 2018: $213.7m).
· Adjusted Net Debt1 of $3,807.5m at 30 April 2019, 2.7 times Adjusted EBITDA, after including the $1,800.0m return to shareholders in May 2019.
· Adjusted Diluted Earnings per Share growth from continuing operations of 8.4%.
· Interim dividend of 58.33 cents per share (six months ended 30 April 2018: 58.33 cents).
· Profit for the period of $1,397.1m (30 April 2018: $619.7m).
The table below shows the key results for the Group for the six months ended 30 April 2019:
| Results at a glance | Six monthsended30 April 2019 (unaudited) | Restated 2Six monthsended30 April 2018(unaudited) | Growth/(Decline)% |
| Alternative performance measures from continuing operations1 | |||
| Revenue (versus CCY comparatives) | $1,657.1m | $1,749.6m | (5.3)% |
| Adjusted EBITDA (versus CCY comparatives) | $662.3m | $650.4m | 1.8% |
| % Adjusted EBITDA margin (versus CCY comparatives) | 40.0% | 37.2% | + 2.8 ppt |
| Adjusted Diluted Earnings per Share – continuing operations | 85.53c | 78.93c | 8.4% |
| Adjusted Net Debt | $3,807.5m | $4,337.3m | 12.2% |
| Adjusted Net Debt / Adjusted EBITDA ratio | 2.7 times | 3.0 times | |
| Statutory Measures | |||
| Revenue | $1,657.1m | $1,791.3m | (7.5)% |
| Operating profit | $32.6m | $31.8m | 2.5% |
| Profit for the period | $1,397.1m | $619.7m | 125.4% |
| Diluted Earnings per Share | 322.74c | 136.90c | 135.7% |
1 The definition and reconciliations of Adjusted EBITDA, Adjusted EPS, Adjusted Diluted EPS, Adjusted Net Debt, Adjusted Cash Conversion, Free cash flow and Constant Currency are in the “Alternative Performance Measures” section of this Interim Statement.
2 The comparatives for the six months to 30 April 2018 have been restated to reflect the divestiture of the SUSE business segment.
Stephen Murdoch, Micro Focus International plc Chief Executive Officer, commented:
“We have made steady progress this half year, delivering against our financial and operational commitments and doing what the company does best: making, selling and supporting infrastructure software solutions that customers value and rely on. Micro Focus helps customers around the world to drive further returns from their existing investments while also taking advantage of new technologies and innovations to support their digital transformation. We have continued to make progress on our significant program of work to fully integrate the HPE Software business through the sustained application of the Micro Focus business model. As a result, we are pleased to reiterate full-year guidance.”
