Micro Focus International Lifts Dividend By 26.6% to Yield 3.7%
LONDON -- Shares in Micro Focus rose over 9% in early trade this morning, following the release of its audited preliminary results for the year ended April 30, 2013.
The international software product group saw pre-tax profit increase by 2.8% year on year on a reported basis, while underlying adjusted EBITDA was also up, by 7.5%. This came despite revenues slipping 4.8% against 2012's figure, though previous guidance had already indicated that this would be the case.
Executive chairman Kevin Loosemore commented:
Following last year's stabilization and focus on product management, the current year has been one of solid progress in a challenging market, with our focus turning to channels to market, marketing effectiveness and sales execution.
Having consolidated the business and met market expectations for nine consecutive quarters we are also ready to consider appropriate acquisition opportunities that would provide enhanced financial returns, accelerate our organic growth, consolidate our market positions or deliver technical functionality offsetting development costs and delivering speed to market for key product features.
Shareholders in the FTSE 250-listed company will be happy with the news that basic earnings per share lifted 19.7% compared to the previous year, to $0.7872 -- approximately 50 pence (Micro Focus delivers its results in American currency).
Additionally, a proposed 20.1% increase in the final dividend contributing to an expected 26.6% rise in the total dividend per share to $0.40 -- around 26 pence, putting Micro Focus on a prospective yield of 3.7%.
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The article Micro Focus International Lifts Dividend By 26.6% to Yield 3.7% originally appeared on Fool.com.
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