UK software firm Micro Focus 'back on track' as revenue tops expectations

Emily Nicolle
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Shares in Micro Focus rose as much as 15 per cent, despite a 26 per cent drop year-to-date (Source: Getty)

London-listed software firm Micro Focus said sales had fallen less than expected last year, causing its share price to jump as much as 15 per cent.

It reported a fall of 5.3 per cent revenue for the 18 months to the end of October, compared to earlier expectations of between six and nine per cent.

Adjusted earnings rose more than nine per cent to $1.5bn (£1.2bn), while its profit margin rose to 37.7 per cent.

Micro Focus' share price has dropped 26 per cent over the last year, as the firm struggled to integrate assets acquired from Hewlett-Packard in a $8.8bn deal in 2017.

Read more: Micro Focus set to avoid blue-chip relegation with half-year sales bounce

The firm also today extended its $400m share buyback programme by up to a further $110m.

Chief executive Stephen Murdoch said: "I am pleased with the financial and operational progress we have made over recent months as we continue to build a more dynamic environment where execution is faster, operations simpler and people more accountable, all of which is focused on delivering value to customers and shareholders for the long-term."

He added that Micro Focus was likely to continue its upward trajectory throughout the rest of 2019.

Its share price closed the day at a rise of 13.4 per cent at 1,720p.