Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Micro Focus International PLC on Wednesday posted a lower revenue despite narrowing profits, citing inflation and a challenging recruitment environment.
For the year ended April 30, sales slid 8.7% to $1.27 billion from $1.39 billion a year before.
Its pretax loss narrowed to $42.9 million from $280.0 million on reduced costs, but adjusted earnings before interest, tax, depreciation and amortisation fell 12% to $449 million from a constant-currency year-earlier figure of $510.7 million.
Exceptional item charges fell to $21.2 million from $143.0 million a year before.
As a result, Micro Focus cut its interim dividend to 8 cents per share from 8.8 cents.
Shares in the Newbury, England-based enterprise software group fell 17% to 298.40 pence on Wednesday in London.
‘The significant change in workforce behaviours as we begin to emerge from Covid-19 has resulted in elevated employee attrition, wage inflation and a more challenging recruitment environment across the technology sector,’ Micro Focus explained.
‘Looking forward, based on our year-to-date performance our expectations for revenue, costs and cash for financial year 2022 remain unchanged. We are working to mitigate the increased risks arising from the macro-economic environment wherever possible,’ the company added.
Copyright 2022 Alliance News Limited. All Rights Reserved.