Micro Focus International plc Trading update and Strategic review (5252K)

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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: [phone] 
   Kevin Loosemore, Executive Chairman         [e-mail] 

Stephen Murdoch, CEO

Brian McArthur-Muscroft, CFO

Ben Donnelly, Investor relations

   Brunswick                                                            Tel: [phone] 
   Jonathan Glass                                                   [e-mail] 

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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August 29, 2019 02:00 ET (06:00 GMT)