Shares in Micro Focus International were down on the FTSE 250 in morning trading after the technology company reported a rise in pre-tax profit in the full year ended 30 April.
Group revenue increased 0.8 per cent in the period to $436.1 million, while pre-tax profit rose 16.5 per cent to $114.5 million.
The group said that it had net exceptional charges of $14.5 million, down from $45.1 million a year previously, thanks mainly to major restructuring and property rationalization.
Net debt at the end of the period fell from $68.2 million to $14.9 million, thanks to a share buyback of $42 million.
The group said it would be raising its total dividend 7.3 per cent to 23.4 cents per share.
Kevin Loosemore, Executive Chairman of Micro Focus International, said, "This has been a disappointing year for Micro Focus. The reported results are significantly below management's expectations at the beginning of the year. Our failure to execute in line with agreed plans has resulted in two profit warnings and a further change in executive management. These results have impacted all stakeholders.
"On 14 April 2011, the board asked me to become full time Executive Chairman and I was delighted to accept. I have been involved with Micro Focus since our IPO in 2005, predominantly as Non-Executive Chairman and have experienced a mixture of delight and frustration at the Company's progress. My focus is on delivering shareholder value and returning the business to a forward trajectory. In order to achieve this, we have to address a number of challenges within the business to correct the poor execution over the last year, particularly around Product Management and Sales execution, and we have already started on our change programme. I am confident that when running effectively, Micro Focus is an excellent business capable of providing outstanding returns.
"The recent bid speculation has demonstrated that others see value in our business, particularly around our strong cash generation. The management team is committed to improving our performance and delivering value to all stakeholders whether as an independent Company or through a change of ownership. We continue to evaluate all realistic options in that regard.
"Reflecting our robust financial position, we have decided to maintain the final dividend for the year at 16.2 cents per share (2010: 16.2 cents per share) giving an increase in total dividend per share for the year of 7.3% to 23.4 cents (2010: 21.8 cents)."
By 10:25 shares in Micro Focus International were down 3.81 per cent on the FTSE 250 to 340.50 pence per share.