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MICRO FOCUS Trading Statement Released : 18/05/2021 07:00 RNS Number : 9116Y Micro Focus International plc 18 May 2021 18 May 2021 Micro Focus International plc Trading Statement Overview The Board of Micro Focus International plc ( " Micro Focus " or " the Group " , LSE : MCRO.L , NYSE : MFGP ) , the global enterprise software group , today issues a trading update for the six months ended 30 April 2021 . • Micro Focus expects to report revenue of approximately $ 1.4bn for the six months ended 30 April 2021. This performance is ahead of market expectations and represents a decline of approximately 5 % on a constant currency ( " CCY " ) basis when compared to the first half of FY20 . An expected Adjusted EBITDA margin of approximately 36 % for the first half is also ahead of market expectations , reflecting the strong licence revenue performance and cost savings from back office simplification , partially offset by the planned product investment . Sales execution in the period was strong , resulting in an improvement in sales conversion rates and a number of deals closing earlier than expected . The H2 weighting of prior year revenue due to COVID - 19 was also a factor . The Group continues to target a meaningful improvement in the rate of constant currency revenue decline in FY21 when compared to FY20 , in line with current revenue consensus . As at 30 April 2021 the Group had cash of $ 0.7bn and Net debt of $ 4.1bn , with operating cash generation remaining strong . Stephen Murdoch commented : " We are pleased with a period of further solid progress in most areas of our business . The product investments and operational changes we are making are beginning to deliver performance improvements , and our value propositions are resonating with customers and partners , as demonstrated by the signing of the significant , long term commercial agreement with AWS . Our recovery programme and specifically our systems transformation is progressing as planned despite the challenges of executing this within the constraints of a global lockdown . I am proud of the resilience , flexibility and professionalism of our teams across the organisation . As a business , we continue to monitor the impact of COVID - 19 on our workforce , with particular focus currently on supporting our colleagues in India . Whilst there is a great deal to do , we are encouraged by our progress and remain committed to delivering revenue stabilisation and sustainable cash flow generation for our shareholders . " Financial Performance Approximate Y - o - Y revenue trajectory ( on a CCY basis ) Licence Maintenance SaaS and other recurring Consulting Total revenue trajectory H1 FY21 versus H1 FY20 10 % ( 8 ) % ( 5 ) % ( 9 ) % ( 5 ) %