Shares in software services firm Micro Focus International have tanked by almost a third after the company said sales would slump further than expected.
The FTSE 100-listed firm previously warned in March that revenue would be 4% to 6% lower for the year ending 31 October. Micro Focus now says sales will be 6% to 8% below last year's figures because of a "deteriorating macro-environment".
Micro Focus bought Hewlett Packard Enterprise's software business in 2017 and is the largest UK-headquartered technology firm.
In its latest trading update, the company said the economic climate had resulted in "more conservatism and longer decision-making cycles" across its customer base.
The Newbury, Berkshire company sells software and consultancy services worldwide and has struggled to fully integrate the larger US-based HPE Software business, that it acquired for £6.8bn.
Micro Focus CEO Stephen Murdoch said the company would now “accelerate” an ongoing strategic review of the group's operations as a result of worsening expectations.
Murdoch took over as CEO last March. At the time, the value of the company had more than halved after another sales warning, leading to the resignation of the incumbent CEO.
For the half-year, Micro Focus said licence revenue had declined 11% and consulting business by 18%.
