INTERVIEW: Micro Focus Has Great Future - Outgoing CFO

24th Jun 2010 15:36

By Lilly Vitorovich Of DOW JONES NEWSWIRES LONDON (Dow Jones)--U.K. software group Micro Focus International PLC (MCRO.LN), which posted strong results on Thursday, has a bright future with solid growth prospects, said Nick Bray, the outgoing chief financial officer, whose surprise departure triggered a share price slump. The 45 year-old also backed the company's new Chief Executive Nigel Clifford, who took the helm on May 1 following a stint at mobile giant Nokia Corp. (NOK). "It's a very strong company; it's got significant market opportunity and great growth prospects. It's now moving onto the next stage of the journey," Bray told Dow Jones Newswires. News of Bray's departure led to a 12% fall in the company's share price Thursday, echoing a similar fall in September when Stephen Kelly announced he was stepping down as CEO. At 1458 GMT, Micro Focus shares were down 63 pence 465 pence, valuing the company at GBP952 million. The FTSE 250 index was down 0.8%. Chairman Kevin Loosemore was always clear that he was looking to replace Kelly with an external candidate, "It was never my expectation or ambition to be the chief exec," Bray said. Bray, who has been with Micro Focus for over four and a half years, is considering a few options with after receiving calls from the Middle East and U.S. He declined to identify the companies that have approached him. "The opportunities I'm looking are CFO opportunities, that's my skill set," said Bray, noting he won't be rushing into anything. "I have said to Kevin that I will gladly help out as required in the transition should that be required by the company," he added. Bray has no immediate plans to sell his Micro Focus shares, which are valued around GBP500,000, noting the group has "just delivered a great set of results" and has a "very strong future ahead." Micro Focus Thursday posted a 21% increase in net profit to $74.4 million for the year ended April 30 from $61.5 million, driven by a 57% rise in sales and a slightly lower tax bill. The FTSE 250 company said current trading is in line with management expectations, and forecast mid-single digit organic revenue growth for fiscal 2011. It hopes to return to double digit organic revenue growth over the medium term, while maintaining adjusted Ebitda margins at approximately 40%. Micro Focus provides software and consultancy services to help clients update legacy IT platforms, a less costly solution than buying new systems, particularly for firms looking to save costs due to the economic downturn. -By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; [email protected] (END) Dow Jones Newswires June 24, 2010 10:36 ET (14:36 GMT)