Micro Focus interim profits rise 63 pct, lifts dividend

British IT services company Micro Focus International Plc reported a 63 percent rise in pretax profit for the first half as revenue rose and the company lifted its interim dividend by 28.6 percent to 7.2 cents.

The business model and strong fundamentals of Micro Focus mean that the company expects to perform robustly throughout the economic cycle, said chief executive Nigel Clifford.

For the half-year ended Oct. 31, pretax profit increased to $63.2 million from $38.8 million in the year-ago period. Revenue rose 8.7 percent to $215.6 million.

Maintenance revenue, which accounted for 53.8 percent of total revenue, continues to provide a strong recurring revenue stream, and benefits from high renewal rates, the company said.

The group expects full-year revenue to be broadly in line with last year's pro-forma constant currency figure of $453 million.

Shares of the company, a member of the FTSE 250, are trading 0.25 percent higher at 359.00 pence at 08:25 am GMT Wednesday on the London Stock Exchange.