Micro Focus will not pay dividend this year due to coronavirus crisis
IT firm Micro Focus will not pay a final year dividend in response to coronavirus.
“While there has been no material impact on Micro Focus’ business to date, the ultimate impact on the global economy is unknown,” it said.
The company has endured turmoil recently after its chairman stepped down in February due to a challenging financial year.
Its annual results saw dramatic falls in operating profit and revenue with net debt climbing.
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Shares sunk 15 per cent on 340p as a result.
Last month, it had to scrap a £1.4bn debt sale due to uncertainty caused by coronavirus.
At the end of February, the firm claimed to have in excess of £600m in cash.
The planned purpose of this cash had been to finance its failed acquisition of Hewlett Packard’s enterprise software division.
One of the UK’s largest technology companies, Micro Focus specialises in buying older, low growth, software.
It had been hailed as an example of a UK company acquiring overseas competitors, a process which normally happens in reverse.