Micro Focus increases its 2015 interim dividend by 10% in $ terms

DividendMax Ltd.

Micro Focus increases its 2015 interim dividend by 10% in $ terms

Key highlights

Total revenue of $208.3m in line with the prior year, with growth in Maintenance and Consultancy revenue offset by a decline in Licence revenue

Adjusted EBITDA ahead of market expectations at $102.5m, an increase of 17.4% on a constant currency ("CCY") basis, at a margin of 49.2%

Underlying Adjusted EBITDA increased by 8.7% on a CCY basis to $98.3m

First recognition of the tax benefit of the UK Patent Box regime totaling $7.6m comprising a current year six month tax benefit of $2.9m and a benefit of $4.7m in respect of the year ended 30 April 2014

Growth in Adjusted diluted earnings per share of 34.0% to 58.92 cents (2013: 43.98 cents)

Strong cash conversion in the period

o Cash generated from operations was $68.4m (2013: $86.4m) representing 88.4% (2013: 96.1%) of Adjusted EBITDA less exceptional costs

o Net debt at 31 October 2014 decreased to $258.9m (April 2014: $261.0m), significant items included payment of final dividend of $40.2m and costs paid of $7.5m relating to the acquisition of Attachmate announced on 15 September 2014

o Net debt to Facility EBITDA (for 12 month period to 31 October) multiple of 1.16 times (2013: 1.63 times)

Enhanced returns for shareholders

o Compound Annual Growth Rate in Shareholder Value over the last three years is 46.9% (2013: 31.0%)

4th Return of Value completed of 60 pence per share for a total cost of £83.9m ($131.6m)

Proposed interim dividend increased by 10.0% to 15.4 cents per share (2013: 14.0 cents per share)

Announcement, subsequent approval and completion of the acquisition of Attachmate

o Exceptional costs associated with the transaction of $25.1m

o Exceptional interest costs of $2.4m relating to the refinancing of existing debt facilities

Statutory results

Operating profit of $63.7m ($88.8m pre-exceptional costs) (2013: $73.9m)

Profit before tax of $57.1m (2013: $70.5m)

Basic earnings per share of 36.17 cents (2013: 38.85 cents) decreased by 6.9%

Companies mentioned