HP unit’s gains put Micro Focus in better shape

Software owner Micro Focus staged a relief rally today after investors took heart from a rebound in its newly acquired Hewlett Packard unit.

Shares jumped over 7% to 2368p, the most since Micro unveiled its £8.8 billion takeover of HPE Software last September, after sales figures showed a partial turnaround at the division.

Micro has been hammered over the past few months after it said in May that second-quarter sales were down 10% year on year.

But third-quarter sales out today showed an improvement, with sales drifting just 3% instead.

Barclays' analysts said:"It is a far more reassuring starting point to Micro Focus' integration of the merger."

Micro, led by executive chairman Kevin Loosemore, is effectively an M&A vehicle that snaps up vintage software. Its flagship brand is Cobol, a computer language was first invented in 1959.