Currency moves to push down on Micro Focus revenues

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UK-based technology group Micro Focus said it expected full-year revenues to decline as much as 2 per cent this year as it took a hit from the strong dollar.

The FTSE 100 listed company said weakness in the pound, euro and yen against the US dollar in the last three months pushed down on full-year revenues from $1.40bn to $1.39bn in constant currency terms.

It expects full-year revenues to come in around 0-2 per cent lower when measured at constant exchange rates. The US dollar has hit 13 year highs in the wake of Donald Trump’s election as US president in November, while the pound and euro have weakened in the light of the Brexit vote and low central bank interest rates respectively.

Last year, Micro Focus announced was buying up the software assets of larger rival, Hewlett Packard Enterprise.

In a trading update this morning, the company added that its net debt had slipped to $1.55bn from $1.61bn after it paid out its interim dividend last month.

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