Micro Focus shares drop 22% on profit warning

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Bret Fitzgerald

Shares in software giant Micro Focus International have fallen 22% after it said sales would be worse this year than expected.

The FTSE 100-listed firm had already warned in March revenue would be 4% to 6% lower for the year to 31 October.

It now says sales will be 6% to 8% below last year’s because of the “deteriorating macro-environment”.

The company, which bought Hewlett Packard’s software business in 2017, is one of the UK’s largest tech firms.

Micro Focus will accelerate a strategic review of the group’s operations as a result of the worsening expectations, chief executive Stephen Murdoch said.

The aim would be to determine “where performance can be improved and how the business can be better positioned to optimise shareholder value”, he added.

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