Saturday, 5 July 2008

Micro Focus doing well

I had a note from Stephen Kelly - CEO of Micro Focus - which reminded me that I hadn't commented on their excellent results announced on 27th June 08. I won't repeat them now - you can read the FT 28th June 08 - Micro Focus in bullish form as sales jump 19%. Actually revenues jumped 33% if you include the acquisitions made in the period. Plus 38.8% EBITDA growth, almost 100m of cash generated from continuing operations and acquisition of a NASDAQ company, NetManage. Given the current economic backdrop, these results are pretty damned good.

Clearly my friend George O'Connor at Panmure Gordon agrees. You can download his 4th July 08 note on Micro Focus Click here.

Kelly was generous enough to thank me for the advice and guidance from the lunch I had with him at the Vineyard on his appointment a couple of years back But added "Never complacent and lots more to do…"

As I will say at my Breakfast Briefing for Grant Thornton on Wednesday, it is not all bad news for all the companies in our sector. Micro Focus seem to have a set of offerings well-tuned to today's environment of "Make do and Mend" and getting the very best out of what you already have.

2 comments:

Martin said...

Why is such a great blog so devoid of commentators?

I just want to add my voice to the praise being heaped on MF's performance. Now is the time for superior execution to shine through and the new[ish] team at MF are doing just that. Far be it for me to be jingoistic, but it's satisfying to see a predominately UK management team performing so well on the global stage.

At LANSA we provide a similar set of products and services to the IBM midrange space, as opposed to the mainframe space that MF dominates. We are also making a good crust from a seemingly 'boring' sector and agree with Richard that the turn toward a 'make do and mend' posture has already begun. System replacement projects are being shelved at a rapid rate and this trend bodes well for those of us who have long believed that legacy modernisation projects can deliver a better ROI than big-bang migrations. Put it this way, I wouldn't want to be a packaged software vendor with a high six or seven figure price tag and a long implementation time right now!

Martin Fincham
General Manager, EMEA
LANSA

Richard Holway said...

Martin
I do get loads of comment by email but, as you say, very few 'public' ones. I think that's because the readership (and those that comment) tend to be very senior/CEO/Director-level. They seem to want to keep their views betwee 'thee and me'.
I'd be delighted to publish more of these comments but they tend to come ith big headings saying NOT FOR PUBLICATION!
Rgds
R