Key highlights
Integration of TAG with Base Micro Focus ahead of plan
o Revenue, Underlying Adjusted EBITDA and EPS ahead of market expectations
o Total reported revenue was $834.5m including $416.0m of new revenue from the acquisition of TAG. Underlying revenue of Base Micro Focus was flat year on year on a CCY basis.
o On a CCY basis:-
• Underlying Adjusted EBITDA increased by 85.3% with Base Micro Focus growing by 11.1%.
• Adjusted EBITDA increased by 94.8% with Base Micro Focus business growing by 18.5%.
o Finance costs increased to $56.2m (2014: $8.2m) primarily due to new bank facilities taken on as part of the transaction. Finance costs covered 6.2 times by Adjusted Operating Profit (2014: 22.9 times covered)
o Growth in Adjusted diluted earnings per share of 32.8% to 129.43 cents (2014: 97.48 cents)
Acquisition of TAG
o Exceptional costs associated with the transactions of $99.1m
Strong cash conversion in the period
o Cash generated from operations was $288.7m (2014: $206.8m) representing 110.6% (2014: 107.7%) of Adjusted EBITDA less exceptional items
o Strong cash flow enabled early repayment of $150m of $2,000m debt facilities raised for completion of the transaction. New debt facilities used to refinance TAG debt of $1,294.7m, provide a return of value to the Base Micro Focus shareholders of $131.6m, normal dividends of $72.7m and costs associated with the deal of $82.7m
o Net debt at 30 April 2015 of $1,403.5m (April 2014: $261.0m), with a net debt to pro-forma Facility EBITDA multiple of 2.6 times (2014: 1.3 times), target remains 2.5 times
Enhanced returns for shareholders
o Compound Annual Growth Rate in Shareholder Value over the last three years is 42.0% (2014: 31.2%)
o 4th Return of Value completed of 60 pence per share for a total cost of £83.9m ($131.6m)
o Proposed final dividend increased by 10% to 33.0 cents per share (2014: 30.0 cents per share)
o Proposed total dividend increased by 10% to 48.4 cents per share (2014: 44.0 cents per share)
