ANALYST VIEWS: WHAT DO YOU THINK OF MICRO FOCUS’ RESULTS?
JONATHAN JACKSON | KILLIK & CO
The figures were in line with previous guidance. Cash conversion was strong, at 113 per cent, and net debt fell to $14.9m. The final dividend was maintained to give a full-year increase of 7.3 per cent. Discussions are ongoing regarding potential offers, but there is no certainty any offer will be forthcoming.
RAJEEV BAHL | MATRIX
No real surprises in Micro Focus’ full year results, with the operating result in line, earnings per share slightly ahead and cash conversion of 102 per cent. Guidance of a revenue decline in the coming year looks a little conservative to us. Our estimates and consensus already factor in a small organic revenue decline.
JULIAN YATES | INVESTEC
There has been no confirmation of a bid and we feel that these results will not help secure a robust bid price. We maintain our more cautious “hold” but we feel in the absence of a bid the stock could head back towards the 250p level, unless there is increased certainty on the strategic outlook.