Micro Focus International plc Update on COVID-19 in regards to dividend and AGM (5408G)
March 18 2020 - 3:00AM
UK Regulatory
TIDMMCRO
RNS Number : 5408G
Micro Focus International plc
18 March 2020
18 March 2020
Micro Focus International plc
Update on COVID-19 in regards to dividend and annual general
meeting
Micro Focus International plc ("Micro Focus" or "the Company")
today announces that the Board is no longer recommending a final
dividend for the year ended 31 October 2019 and therefore it
intends to withdraw resolution number 2 as set out in the Notice of
Annual General Meeting dated 18 February 2020 (the "Notice")
relating to the approval of a proposed final dividend of 58.33
cents per ordinary share at its forthcoming Annual General
Meeting.
Today's announcement is made in the context of the current
increased macro uncertainty, which has been uniquely impacted by
the global spread of COVID-19. While there has been no material
impact on Micro Focus' business to date, the ultimate impact on the
global economy is unknown. As a minimum we believe it appropriate
to be prepared for a level of disruption to our new sales activity
even though the majority of our revenues are contractual and
recurring in nature. As a result, we think it is right to approach
the next twelve months with a reduced risk appetite and heightened
sense of caution.
The Board will consider paying a second interim dividend in
respect of the year ended 31 October 2019 (in lieu of the final
dividend) once there is some visibility on the effects of the
COVID-19 on the Company's business.
This decision not to pay a final dividend in no way alters the
Board's view that the group remains appropriately capitalised, with
robust profits underpinned by recurring strong cash flows. Micro
Focus has cash on hand of in excess of $600 million at 29 February
2020. However, in the current extraordinary climate the board
believes it is prudent to use every tool at its disposal to
maximise the group's resilience in the face of exogenous shocks and
to minimise any real or perceived financial risks arising from the
current crisis.
As previously announced, the Company's Annual General Meeting
("AGM") will be held at 15:00 GMT on 25 March 2020 at its offices
at The Lawn, 22-30 Old Bath Road, Newbury, Berkshire RG14 1QN.
In view of the ongoing COVID-19 pandemic, Micro Focus is
encouraging shareholders to appoint the Chairman as their proxy
(either electronically or by post) with their voting instructions
rather than attend the AGM in person. The deadline for doing this
is by 15:00 GMT on Monday 23 March 2020 for shareholders and 13:00
EST on Wednesday 18 March 2020 for ADR shareholders. In order to
reduce the risk of infection, the meeting will end immediately
following the business of the AGM and there will be no
refreshments. The Company is taking these precautionary measures to
safeguard its shareholders' and employees' health and make the AGM
as safe and efficient as possible.
Instructions on proxy voting are attached to the Notice of
Meeting enclosed with the 2019 Annual Report already sent out to
shareholders and which can be found on the Company's website:
https://investors.microfocus.com/investors-media/shareholder-information/general-meeting-information/
The COVID-19 pandemic is complex, fast moving and, at times,
unpredictable. Micro Focus is continuously monitoring the situation
and will continue to update shareholders on material corporate and
business developments in the usual way, via a Regulatory
Information Service.
Enquiries:
Micro Focus Tel: +44 (0)1635 32646
Stephen Murdoch, CEO Investors@microfocus.com
Brian McArthur-Muscroft, CFO
Ben Donnelly, Investor relations
Brunswick Tel: +44 (0) 20 7404 5959
Sarah West MicroFocus@brunswickgroup.com
Jonathan Glass
Notes to Editors:
About Micro Focus
Micro Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise
software company supporting the technology needs and challenges of
the Global 2000. Our solutions help organizations leverage existing
IT investments, enterprise applications and emerging technologies
to address complex, rapidly evolving business requirements while
protecting corporate information at all times. Our product
portfolios are Security, IT Operations Management, Application
Delivery Management, Information Management & Governance and
Application Modernization & Connectivity. For more information,
visit: www.microfocus.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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