Revenue and adjusted EDITDA are tracking ahead of no-longer-for-sale Micro Focus’s own expectations according to executive chairman Kevin Loosemore. This was the theme of its August trading statement so the repeat in today’s update continues a positive trend and contrasts with its poor fiscal 2011. It presumably backs the decision the company made to close down discussions with potential acquirers Bain Capital and Advent International (see Micro Focus takes the sale sign down) on the grounds that their bids undervalued the company. It is the Micro Focus AGM today so shareholders are sure to make their feelings known.
The company will also use the AGM to seek to renew its annual buyback authority in order to continue its share buyback programme, which is its current method for returning capital to shareholders. Since the tail end of March it has spent $104.9m (£65.5m) on 20.5m shares at an average price, including costs, of 319 pence per share. However, it is also looking for alternative methods. At 31 July 2011, the Group had net cash of $0.8m.