Micro Focus, the British software company, said today that its second-half revenue would be slightly better than forecast and that it expected to achieve double-digit organic growth for the full year.
The firm, based in Newbury, Berkshire, which helps companies to improve the performance of older computer systems, said that, despite its previous prediction, second-half revenue would be similar to its first-half performance and that it was likely to be “marginally” stronger.
Stephen Kelly, the Micro Focus chief executive, said that a strong third quarter was behind the increase.
He said: “Margins are broadly consistent with those of the first half year. Excluding the beneficial impact of exchange rate movements, we are confident of achieving double-digit organic growth from the core business in the full year to April 2008.”
In a note, George O’Connor, a Panmure Gordon analyst, said: “We think that business has been strong across the board and particularly so in the US.”
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But he added that “caution, combined with incremental earnings upgrades, should be the watchword as Micro Focus is still in recovery mode” after the departure of Mike Shinya, the chief operating officer, on January 7.
Shares in Micro Focus were up 4.25p this morning to 226p, valuing the firm at £444 million.