Key highlights
On a reported basis:
o Total revenues of $1,380.7m (2016: $1,245.0m), an increase of 10.9%.
o Adjusted EBITDA of $651.1m (2016: $546.8m), an increase of 19.1%.
o Underlying Adjusted EBITDA increased by 20.4% to $640.9m (2016: $532.5m)
On a pro-forma CCY basis to provide a better comparison of like-for-like performance:
o Total revenues of $1,380.7m (2016: pro-forma CCY $1,392.7m), a decrease of 0.9%, driven by :
• Strong SUSE Product Portfolio performance where revenues grew by 21.2% on a pro-forma CCY basis;
• On plan performance in Micro Focus Product Portfolio with expected reduction in maintenance and Serena revenues.
o Adjusted EBITDA of $651.1m (2016: pro-forma CCY $629.9m), an increase of 3.4%.
o Underlying Adjusted EBITDA of $640.9m (2016: pro-forma CCY $615.3m), an increase of 4.2%.
Underlying Adjusted EBITDA margins improved further to 46.4% (2016: pro-forma CCY 44.2%) through continued focus on operational efficiencies.
Completion of the Serena acquisition took place on 2 May 2016 for an Enterprise Value of $540.0m on a cash and debt free basis, partially funded by a share placing in FY16 of 10.9m shares at a price of 1,455 pence raising £158.2m ($225.7m) before expenses.
Exceptional costs incurred in the year of $97.3m (2016: $27.9m) relate to integration costs, acquisition costs, pre-acquisition costs, property costs, severance and legal costs.
Improved cash generation in the year:
o Cash generated from operations was $564.8m (2016: $456.1m) representing 102.0% (2016: 87.9%) of Adjusted EBITDA less exceptional costs.
o Net debt at 30 April 2017 was $1,410.6m (30 April 2016: $1,078.0m) down from $1,625.0m following the Completion of the Serena acquisition on 2 May 2016.
o Net debt to Facility EBITDA for the year to 30 April 2017 is a multiple of 2.1 times (2016: 1.9 times), reducing from 2.5 times following the acquisition of Serena; medium-term target remains 2.5 times.
Growth in diluted adjusted earnings per share of 19.7% to 175.65 cents (2016: 146.70 cents)***
Second interim dividend increased by 17.3% to 58.33 cents per share (2016: final dividend 49.74 cents per share) resulting in a full year dividend of 88.06 cents per share (2016: 66.68 cents per share), an increase of 32.1% in line with twice covered dividend policy.
