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Micro Focus International (MCRO)

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kempiejon
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Re: Micro Focus International (MCRO)

#247697

Postby kempiejon » August 29th, 2019, 9:39 am

idpickering wrote:Somebody over on HYP Practical suggested I add these to my HYP recently. I’m glad I didn’t what with the near 30% drop in sp as I type. My sympathy to holders out there.

Ian.

Not necessarily a recommendation Ian but I bought some at about these levels last year just before their price rise. No mention of the dividend in the profit warning and the difficulty in swallowing Hewlett Packard is, I thought, well known. Short term price changes do not concern me too much but a 30% drop in price following a 6% cut in profits would merit investigation.

johnhemming
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Re: Micro Focus International (MCRO)

#247698

Postby johnhemming » August 29th, 2019, 9:44 am

This was on my long list of potentially investables, but I think the key as I see it is the chairman selling half of his holding in July. It strikes me that they have hit a limit on growth and need to structure themselves for the long term. It is unclear where that will end up.

I don't think it is a 6% cut in profits, but a 6% cut in revenue.

kempiejon
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Re: Micro Focus International (MCRO)

#247701

Postby kempiejon » August 29th, 2019, 9:51 am

johnhemming wrote:I don't think it is a 6% cut in profits, but a 6% cut in revenue.

Ah yes good point. from https://www.bbc.co.uk/news/business-49507971

"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"."

idpickering
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Re: Micro Focus International (MCRO)

#247711

Postby idpickering » August 29th, 2019, 10:18 am

kempiejon wrote:
idpickering wrote:Somebody over on HYP Practical suggested I add these to my HYP recently. I’m glad I didn’t what with the near 30% drop in sp as I type. My sympathy to holders out there.

Ian.

Not necessarily a recommendation Ian but I bought some at about these levels last year just before their price rise. No mention of the dividend in the profit warning and the difficulty in swallowing Hewlett Packard is, I thought, well known. Short term price changes do not concern me too much but a 30% drop in price following a 6% cut in profits would merit investigation.


Thanks for that kempiejon. No offence intended. Good luck with your holdings.

Ian.

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Re: Micro Focus International (MCRO)

#247817

Postby Wizard » August 29th, 2019, 2:08 pm

idpickering wrote:Trading update and Strategic review

Micro Focus International plc ("Micro Focus" or "the Group", LSE: MCRO.L, NYSE: MFGP), the international software product group, is today providing a trading update for the 12 months ending 31 October 2019 and revising its guidance for the full year.

The Board has concluded that recent trading means that the Group does not expect to meet the constant currency revenue guidance of minus 4% to minus 6%, for the full year to 31 October 2019, compared to the 12 months ended 31 October 2018. Weak sales execution has been compounded by a deteriorating macro environment resulting in more conservatism and longer decision making cycles within our customer base. There remains a significant pipeline of business opportunity being pursued but to be within the current guidance range a highly challenging percentage of this pipeline would need to close prior to year end. As such the board considers it appropriate to revise the guidance range for the year ending 31 October 2019 to minus 6% to minus 8%.

Against this backdrop the Board has decided to accelerate a strategic review of the Group's operations. This review will focus on what in addition to execution improvements are required to optimise the value of our broad portfolio of products and it will consider a range of strategic, operational and financial alternatives available to the Company.


https://www.investegate.co.uk/micro-foc ... 00075252K/

Linked to HYP Practical. Chat here please.

Ian

"financial alternatives", presumably including a dividend rebasing. If you believe the dividend will not be cut they are currently offering over 8.5% yield.

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Re: Micro Focus International (MCRO)

#247820

Postby johnhemming » August 29th, 2019, 2:16 pm

The forecast on Sharecast is less (6.1), but it is difficult to reconcile their forecast finances to the current position.

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Re: Micro Focus International (MCRO)

#247839

Postby carioca » August 29th, 2019, 3:16 pm

kempiejon wrote:
It now says sales will be 6% to 8% below last year's because of the "deteriorating macro-environment"."


When I read this, I remembered that the company is called Micro Focus. Looks like they should have focused more on the macro.

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Re: Micro Focus International (MCRO)

#247927

Postby Hypster » August 29th, 2019, 10:18 pm

idpickering wrote:Somebody over on HYP Practical suggested I add these to my HYP recently.


That was me Ian. It was on my own shortlist as a likely contender for the proceeds from the Greene King takeover! My notes on the watchlist say something about "FTSE100 share with HYPesque forecast yield, covered by earnings, and a decent growth history". It'll be interesting to see what they do with the dividend at the results but I doubt it'll be good news.

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Re: Micro Focus International (MCRO)

#247949

Postby UncleEbenezer » August 30th, 2019, 12:01 am

I've held MCRO for ... I forget how long. It's been *very* volatile, but also very profitable, with quite a few returns of cash as well as a good divi.

Now might just be an entry point.

PinkDalek
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Re: Micro Focus International (MCRO)

#247957

Postby PinkDalek » August 30th, 2019, 12:49 am

Hypster wrote:
idpickering wrote:Somebody over on HYP Practical suggested I add these to my HYP recently.


That was me Ian. ...


No, it wasn't only you.

Micro Focus has often been mentioned as a potential HYP-P candidate over there but that would have been subject to DYOR and IanDP decided against for his own reasons. Such as back here (over there) MicroFocus - a buying opportunity? viewtopic.php?p=108814#p108814 from January 2018. Here's yet another Microfocus an HYP share? viewtopic.php?p=198445#p198445 from February 2019. There are many other threads over there, on the same company, available via a board specific search at HYP-P. I don't think this board is the place to discuss such matters though.

I've held as a non HYP type share, as have others.

idpickering
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Re: Micro Focus International (MCRO)

#247961

Postby idpickering » August 30th, 2019, 5:50 am

Hypster wrote:
idpickering wrote:Somebody over on HYP Practical suggested I add these to my HYP recently.


That was me Ian. It was on my own shortlist as a likely contender for the proceeds from the Greene King takeover! My notes on the watchlist say something about "FTSE100 share with HYPesque forecast yield, covered by earnings, and a decent growth history". It'll be interesting to see what they do with the dividend at the results but I doubt it'll be good news.


Hi Hypster, thanks for that. I meant no disrespect with my rather glib “somebody mentioned it” comment. As Pinkdalek has said, others mentioned this share over there too. Either way, I prefer a hopefully steadier ride from my HYP shares, and I can’t see this one providing that, so not one for me I think.

Ian

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Re: Micro Focus International (MCRO)

#265814

Postby PinkDalek » November 20th, 2019, 3:44 pm

Returning to Company Share News:

Trading update
RNS Number : 9766T
Micro Focus International plc
20 November 2019


Full url https://www.investegate.co.uk/micro-focus-int-plc/rns/trading-update/201911200700079766T/

Extract only Micro Focus expects to report full year Revenue and Adjusted EBITDA that are consistent with the revised revenue guidance given at the time of the trading update on 29 August 2019 ... which was mentioned earlier in the thread but only in percentage terms, as that was all that was available.

Expected Net Debt of $4.3bn also reported but I haven't looked in any detail at that aspect other than Adjusted Net Debt1 of $3,807.5m at 30 April 2019 was the position as per the interims released 9 July 2019. That being before the 29 August 2019 Trading update which was numerically silent on the impact on Net Debt.

Today's RNS includes re the Net Debt ... following the completion of the share buyback programme and a one-off tax payment in respect of the SUSE disposal. The latter was presumably taken into account before the "return of value to shareholders".

PinkDalek
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Re: Micro Focus International (MCRO)

#275198

Postby PinkDalek » January 4th, 2020, 7:13 pm

In anticipation of the announcement set for 4 February 2020, I'm summarising the most relevant recent RNSs below (from a post elsewhere at TLF which'll be lost over there ...)

The following have all been discussed in various places at TLF but I repeat them here if of any interest:

July 2019 https://www.investegate.co.uk/micro-focus-int-plc--mcro-/rns/interim-results-for-six-months-ended-30-april-2019/201907090700068652E/

Dividend

Following the 18 month period covered in the 31 October 2018 Annual Report and Accounts and the payment of three six-monthly dividends, the Group is now returning to its customary two dividend payments during the financial year. The dividend policy remains unchanged at approximately two times covered by the adjusted post-tax earnings of the company.

As a result, we are pleased to announce that the interim dividend will be 58.33c. We expect to maintain this level of interim dividend per share in future years, with a progressive final dividend consistent with our policy, as we return towards our historic dividend phasing of paying approximately one third by way of interim and two thirds by way of final dividend.



August 2019 https://www.investegate.co.uk/micro-focus-int-plc--mcro-/rns/trading-update-and-strategic-review/201908290700075252K/

The Board has concluded that recent trading means that the Group does not expect to meet the constant currency revenue guidance of minus 4% to minus 6%, for the full year to 31 October 2019 ... As such the board considers it appropriate to revise the guidance range for the year ending 31 October 2019 to minus 6% to minus 8%.

November 2019 https://www.investegate.co.uk/micro-focus-int-plc/rns/trading-update/201911200700079766T/

Micro Focus expects to report full year Revenue and Adjusted EBITDA that are consistent with the revised revenue guidance given at the time of the trading update on 29 August 2019 and in line with Company Compiled Consensus

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Re: Micro Focus International (MCRO)

#282118

Postby monabri » February 4th, 2020, 9:24 am


PinkDalek
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Re: Micro Focus International (MCRO)

#288056

Postby PinkDalek » March 2nd, 2020, 4:35 pm

4pm

Proposed term loan refinancing and revolving credit facility extension postponed due to adverse market conditions.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MCRO/14444566.html

Wasron
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Re: Micro Focus International (MCRO)

#290536

Postby Wasron » March 13th, 2020, 3:41 pm

Any idea why MCRO might still be falling today, despite the slight rise in most FTSE 100 stocks?

Wasron

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Re: Micro Focus International (MCRO)

#290608

Postby FanciThat » March 13th, 2020, 7:11 pm

Wasron wrote:Any idea why MCRO might still be falling today, despite the slight rise in most FTSE 100 stocks


Debt/Financing issues - companies with big debts are getting hammered at the moment

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Re: Micro Focus International (MCRO)

#290620

Postby Wasron » March 13th, 2020, 8:44 pm

FanciThat wrote:
Wasron wrote:Any idea why MCRO might still be falling today, despite the slight rise in most FTSE 100 stocks


Debt/Financing issues - companies with big debts are getting hammered at the moment


Yeah maybe that’s it. I was looking at the mixture of green and red this afternoon and you could mostly understand why those in the red were so, whether it’s because people won’t go to the cinema or a restaurant, or travel, or that a global recession will suppress demand for raw materials.

Micro Focus just seemed an anomaly.

I even checked the short tracker and there’s nothing of note on there either.

Maybe a top up on the cards next week, but then, there are plenty of other candidates right now too.

monabri
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Re: Micro Focus International (MCRO)

#384956

Postby monabri » February 9th, 2021, 8:44 am

Preliminary results for the year ended 31 October 2020

https://www.investegate.co.uk/micro-foc ... 00063881O/

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Re: Micro Focus International (MCRO)

#479310

Postby teecee90 » February 8th, 2022, 1:34 pm



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