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Business software company Micro Focus International PLC (MCRO.LN) said Thursday full year sales rose 20%, helped by its NetManage acquisition and its recession-busting IT improvement model, and it looks to the current year with confidence.

Micro Focus provides software and consultancy services to help clients update legacy IT platforms, a less costly solution than buying new systems, particularly for firms looking to save costs due to the economic downturn.

Micro Focus said sales in the year to April 30 rose to $274.7 million from $228.2 million last year, just shy of company consensus forecasts of $275.8 million.

Around 10% of revenue growth was generated organically with the remainder from acquisitions, most notably Netmanage, bought last year.

Adjusted earnings before interest, tax, depreciation and amortization, which excludes exceptionals and share-based payments, rose 34% to $118.6 million, while net profit rose to $66 million from $55 million last time.

The company said the prospectus for its proposed acquisition of Texas, U.S.-based software company Borland Software Corp. (BORL) will be issued shortly.

It's other recent acquisition, of Compuware Corp.'s (CPWR) testing and automated software quality business, is expected to impact the company's margins, Micro Focus said.

Shares closed Wednesday at 375p.

-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com