Micro Focus International plc - Preliminary results for the twelve months to 30 April 2005

Micro Focus International plc - Preliminary results for the twelve months to 30 April 2005

Turnover growth of 19% and profit before tax up 24%

LONDON, July 1, 2005 - Micro Focus International plc ("Micro Focus" or "the Company"; LSE: MCRO.L), Unlocking the Value of LegacyTM, the software company, announces its maiden preliminary results as a listed company for the year to 30 April 2005.  Micro Focus listed on the main market of the London Stock Exchange on 17 May 2005 ("the IPO").

The Company acquired the entire issued share capital of Micro Focus International Limited ("the Operating Company") on 17 May 2005, immediately prior to the IPO.  The results published herein show the consolidated performance of the Operating Company and its subsidiaries (together with the Company, "the Group") for the year to 30 April 2005 and the turnover achieved for the year is in line with the estimate published in the supplementary listing particulars dated 6 and 12 May 2005 and issued by the Company in connection with the IPO. The Company did not trade prior to 30 April 2005 and therefore only its balance sheet and cash flow statements are included below.

Key highlights

• Turnover increased 19.3% to US$150.6m (2004: US$126.3m)
• Turnover increased 15% at constant currency
• EBITDA increased 35.0% to US$41.7m (2004: US$30.9m) and adjusted EBITDA increased 45.7% to US$48.7m (2004: US$33.5m)*
• Profit on ordinary activities before tax increased 23.6% to US$27.7m (2004: US$22.0m)
• Basic earnings per share increased 21.8% to 11.91c (2004: 9.78c)
• Successful IPO in May 2005
• John Browett appointed as a Non-executive Director with effect from 1 July 2005

Commenting on the results, Tony Hill, Chief Executive Officer of Micro Focus, said:

"We are pleased to announce a strong set of full-year results, building on the substantial revenue and operating profit growth the Company has achieved since its independence in August 2001.  We believe this financial performance is further endorsement of our technology leadership and our strong and growing network of business partners.

As companies around the world seek to reduce operating cost and become more agile, so they are increasingly looking to exploit their investment in legacy IT assets. By helping our customers manage legacy more effectively and drive reuse within contemporary contexts, Micro Focus unlocks business value. Moreover, our evolutionary approach comes with much less risk than alternative strategies based on wholesale system replacement.

Our business model is continuing to prove its value. In recent months we have achieved greater penetration of our target markets and, following the IPO and the repayment of debt, we are financially well positioned to maintain profitable growth and generate cash. The Company continues to make good progress and is well positioned for continued growth in the year ahead."

*Details of the reconciliation of operating profit to adjusted EBITDA is provided in the preliminary results