Micro Focus $171m deals for Borland and assets of Compuware in

Micro Focus bides time on CEO decision
By Philip Stafford

Published: December 10 2009 03:12 | Last updated: December 10 2009 03:12

Micro Focus International, the business software supplier, said it hoped to appoint a chief executive by April but said it was “in no hurry” to fill the role after interim results beat expectations.

The top role at FTSE 250 company has been vacant since the surprise resignation of the highly-rated Stephen Kelly in September, citing “personal reasons”.

EDITOR’S CHOICE
Surprise at Micro Focus chief’s exit - Sep-09Lombard: Blankfein wades in to Goldman’s defence - Sep-09Micro Focus increases Borland offer - Jul-01Micro Focus sees record earnings - Jun-26Fears that Micro Focus had overstretched itself with two high-profile acquisitions in the summer were allayed by guidance-beating interim figures.

The combined $171m deals for Borland and assets of Compuware in the summer pushed Micro Focus into the fast-growing market for testing of software.

Together with growth in its existing business, the group had been tipped by analysts to be a potential FTSE 100 stock in a couple of years, making the vacant chief executive role highly attractive to candidates.

“I’ve had lots of love letters, but I’m pretty happy with the progress [in the search] and pretty happy with the way the company is going,” said Kevin Loosemore, chairman. “We’ve almost got a private equity type mindset. Trite as it may sound, our primary consideration is to create value for shareholders,” he said.

Results were at the top end of guidance Micro Focus gave last month. Revenues for the six months to October 31 rose 46 per cent to $198.4m (£121.7m) while pre-tax profits fell from $44.1m to $38.8m after it took a charge of $25.5m in reorganisation costs following. Earnings per share fell from 15.36 cents to 13.74 cents.

Net debt fell to $104.1m as it continued to pay down the $120m debt it built up in the acquisition of Borland and Compuware.

The interim dividend rose 24 per cent to 5.6 cents. Shares in the group slipped 0.7p at 431.9p, but remained close to their all-time high.
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