Interim Results for the six Months Ended 30 April 2020
7 July 2020
Micro Focus International Safe Harbour statement
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Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial condition, business strategy, plans and objectives, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will", or "should" or, in each case, their negative or other variations or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Such risks, uncertainties and other factors include, among others: the level of expenditure committed to development and deployment applications by organisations; the level of deployment-related turnover expected by the Company; the degree to which organisations adopt web-enabled services; the rate at which large organisations migrate applications from the mainframe environment; the continued use and necessity of the mainframe for business critical applications; the degree of competition faced by the Company; growth in the information technology services market; general economic and business conditions, particularly in the United States; changes in technology and competition; and the Company's ability to attract and retain qualified personnel. These forward-looking statements speak only as at the date of this presentation. Except as required by the Financial Conduct Authority, or by law, the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.
Outlook and Guidance
■ Revenue performance consistent with the guidance given at the time of our Preliminary results on 4 February 2020, taking into account the expected disruption to new sales activity which we highlighted in our COVID-19 update of 18 March 2020.
■ Revenue performance includes progress within our security product group but ITOM and ADM were below expectations.
■ Mitigation of COVID-19 revenue weakness at Adjusted EBITDA level, through management of cost base.
■ The Group recorded a goodwill impairment charge of $922.2m in the period, triggered by Covid-19
■ Successful refinancing of $1.4bn term loan means business is fully financed with next term loan due for repayment in June 2024.
■ Operating cash of $0.6bn with available liquidity of $1.1bn as at 30 April 2020.
■ The Group is 5 months into 3 year turnaround plan and structural changes to business are continuing at pace.