microfocus

Shares in the UK’s largest software group Micro Focus (LON:MCRO) fell nearly 10 percent in morning trading on Wednesday, after reporting a loss for the first half of the financial year.

The group disclosed a $68.5 million pre-tax loss for the six months to April, a significant fall from the $83.2 million profit recorded over the previous period. Despite this, revenues increased to $1.9 billion from $696 million previously, but on a constant currency basis fell 8 percent year-on-year.

Net debt hit $4.34 billion at the end of April, up from $1.41 billion the year before, but this is set to be boosted by the sale of its Linux business, SUSE, for $2.54 billiom in cash.

Micro Focus had previously struggled to integrate Hewlett-Packard Enterprise, but executive chairman Kevin Loosemore said:

“I am pleased to report that since March there has been an improved momentum in the HPE Software integration process and a slowdown in the rate of revenue decline. This has led to revenues for the period being at the better end of management guidance.”

Micro Focus (LON:MCRO) shares are currently trading down 9.36 percent at 1,181.50 (1031GMT).