Acquisitions boost MicroFocus

9th Dec 2009 07:43

A better than expected contribution from recent acquisitions Borland and Compuware enable legacy software specialist Micro Focus to lift underlying interim profits by 35% and predict a further improvement in profitability over the rest of the year.Total group revenue rose by 46% to $198.4m (2008: $135.6m) in the six months to October. Pre-tax profits fell to $38.7m from $44.1m after exceptional costs of $25.5m. Adjusted profit before tax rose by 26% to $72.1m (2008: $57.2m).Adjusted earnings rose by 35% to $78m (2008: $57.9m), resulting in an adjusted EBITDA margin of 39%, which after additional cost management measures in the core business in the second half Microfocus expects to boost to 40%.The firm added there was 5% comparable organic revenue growth at constant currencies, while the Borland and the Testing/ASQ division acquired from Compuware added $55.3m to sales.The interim dividend rises by 24% to 5.6c.