Micro Focus reports annual profit rise

19th Jun 2013 07:16

Micro Focus International reported a rise in annual pre-tax profits as the software products group kept a tight rein on costs. Pre-tax profit for the year ended April 30th came to $153.4m, up 5.1% from the previous year's $145.9m on a constant currency basis, largely as a result of reduced expenses.Operating costs before exceptional items, share based payments and amortization of purchased intangibles fell by 11.4% to $230.0m. It mitigated a 2.4% drop in revenue to $414m from $434.8m as the company was affected by a shutdown in US Federal spending and second half economic weakness in Japan."Following last year's stabilisation and focus on product management, the current year has been one of solid progress in a challenging market, with our focus turning to channels to market, marketing effectiveness and sales execution," said Executive Chairman, Kevin Loosemore."As we look to full year 2014 our priority is to ensure that we invest in the organic development of the business."Adjusted earnings before interest, tax, depreciation and amortisation(EBITDA) margin was 45.4% compared to 41.4% last year.Net debt increased by $64.5m to $177.7m following payment of dividends of $57.2m, return of value of $128.8m and acquisition consideration and costs of $15.6m.The company proposed a final dividend for the year is $0.28 per share compared to last year's $0.23. "The board's intention remains to move to a net debt to adjusted EBITDA multiple of approximately 1.5 times," Loosemore added. "This will be done through planned returns of value and/or acquisitions should they be more value enhancing."RD