The Micro Focus International PLC board proposes an interim dividend of 8 cents. The dividend will be paid on 5 August 2022 to shareholders on the register as at 22 July 2022. The dividend will be paid in pounds sterling and the sterling amount payable per share will be fixed and announced approximately two weeks prior to the payment date, based on the average spot exchange rate over the five business days preceding the announcement date.
Other financial highlights include:
Revenue of $1.3bn (H121: $1.4bn), representing a year-on-year decline of 6.8% on a constant currency ("CCY") basis1 excluding Digital Safe and 11.0% on a reported basis (including Digital Safe at actual rates).
Several sub-portfolios are now delivering consistent growth not yet visible at a Product Group level, but they anticipate this will deliver overall growth in CyberRes ahead of schedule and AMC as our mainframe modernisation offering continues to ramp.
Encouraging progress in delivering group simplification with their cost base reducing by approximately $150m on an annualised basis gross of inflation.
Adjusted EBITDA of $449m (H121: CCY $511m) at a margin of 35.4% (H121: CCY 36.7%), reflecting the reduction in revenue in the period, partially offset by their cost reduction programme.
Operating profit of $35m for H122 (H121: loss of $155m) reflecting the above impacts as well as a significant reduction in exceptional spend and the one-off profit on disposal of Digital Safe of $63m. Cash generated from operations also increased to $485m (H1 21: $468m).
This improved quality of earnings underpinned free cash flow growth of 36.2% year-on-year to $190m (H121: $140m).
Net debt of $3,651m (Oct-21: $4,196m), representing a net leverage ratio of 3.7 times with a 0.3 decrease since 31 October 2021.
