Micro Focus first-half profit drops

Micro Focus International's adjusted first-half profit fell 7.7% as the software group's revenue fell.

Adjusted earnings before interest, tax, depreciation and amortisation dropped to $519m (£376m) in the six months to the end of April from $562.6m a year earlier as revenue at constant currency fell 4.6% to $1.43bn.

Micro Focus's operating loss from continuing operations narrowed to $154.8m from $906.7m a year earlier when there was a $922m goodwill charge. The company declared an interim dividend of 8.8 cents a share.

Stephen Murdoch, Micro Focus's chief executive, said: "We are pleased with a period of further solid progress in most areas of our business. Our recovery programme and specifically our systems transformation are progressing as planned despite the challenges of executing this within the constraints of a global lockdown.

"Whilst there is a great deal to do, we are encouraged by our progress and remain committed to delivering revenue stabilisation and sustainable cash flow generation for our shareholders."

The FTSE 250 company has struggled since buying Hewlett-Packard's software business in 2017 for £8.8bn. It is in the second year of a three-year turnaround plan.