(Alliance News) - Micro Focus International PLC on Thursday said its priority was revenue stabilisation as it's loss narrowed despite a reduction in revenue.
In the six months that ended April 30, the software and information technology firm saw its pretax loss narrow to USD280.0 million, from USD1.04 billion the year prior. While first half revenue dropped 4.6% to USD1.43 billion, from USD1.49 billion.
Shares in Micro Focus International were trading down 7.2% at 507.80 pence each in London on Thursday midday.
The Berkshire, England-based business reported exceptional costs in its first half of USD143.0 million, over seven times less than the same period the previous year. In the six months to April 30, 2020, the firm exceptional items charges of USD1.05 billion, including USD922.2 million in goodwill impairment.
As of April 30, Micro Focus International had gross debt of USD4.67 billion, with only one undrawn senior secured revolving credit facility, worth USD350.0 million, remaining.
The company issued an interim dividend of 8.80 cents per share, payable in pounds sterling on August 6. Last year, it did not offer an interim dividend.
Micro Focus International said its primary goal was revenue stabilisation by the end of financial 2023. The company noted that it plans to gradually improve revenue trajectory on an annual basis through targeted investment in its product portfolio.
Chief Executive Stephen Murdoch said: "Our recovery programme and specifically our systems transformation are progressing as planned despite the challenges of executing this within the constraints of a global lockdown."
"Whilst there is a great deal to do, we are encouraged by our progress and remain committed to delivering revenue stabilisation and sustainable cash flow generation for our shareholders," Murdoch added.
By Scarlett Butler; scarlettbutler@alliancenews.com
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