Micro Focus gets revenue boost from takeover

 
Chris Papadopoullos
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UK IT maintenance giant Micro Focus International has seen a big jump in revenue after its acquisition of Attachmate.

The companies total revenue jumped to $834.5m (£555.7) in the year ending 30 April. It marks a 99.6 per cent in the year ending compared with the year before.

The figures include income generated by Attachmate, which it took over on 20 November 2014.

Attachmate contributed $416m of new revenue, around half the annual level of the whole company.

Micro Focus, which is a member of the FTSE 250, helps client update and maintain old computer systems. It employs just over 4,000 staff.

Attachmate is a US-based firm which has similar operations.

While giving a bumper year in terms of revenue, the acquisition of Attachmate by Micro Focus slashed its profit and sharply raised its debt level.

Its net debt was was $1,403.5m as of April 2015, up from $261m last year, while its profit fell 38.2 per cent to $91.4m.

“Progress to date has already shown that this transaction will enable Micro Focus to deliver significantly higher returns to our shareholders over the medium-term than our base case of 15 per cent to 20 per cent per annum,” said executive chairman Kevin Loosemore.

The firm’s share price edged down by 0.22 per cent to £13.72 after the results were published.