Microfocus plunge drags Footsie lower

Market report Perry Gourley

The FTSE 100 had a bruising day, ending down 121.21 points at 7,042.93 after as software group Microfocus dragged the index lower after its shares went into freefall.

The company’s stock crashed 46 per cent to 1,011p after seeing its chief executive quit and warning over sales.

Microfocus said annual revenues were falling at a faster rate than previously expected after being confronted by lower licensing income, adding that boss Chris Hsu was quitting to “pursue another opportunity”, just six months after taking the role.

Jasper Lawler of London Capital Group said the group’s record-breaking reverse merger deal with HPE had “thrown Micro Focus completely off-course”.

At the other end of the spectrum, Barclays shares rose to the top of the pile after activist investor Sherborne become the fourth-largest investor in the lender, raising the prospect of pressure being put on the bank’s board.

Sherborne, run by Edward Bramson, picked up a 5.16 per cent stake in Barclays for £580 million and now sits behind Capital Group, Qatar Investment Authority and Blackrock on shareholder register.

Bramson’s company bills itself as a “turnaround investment firm” and has a stated goal of doubling the share price of companies it invests in.

Hammersonsharesrose24percentto542.4p after the shopping centre owner branded a takeover approach from European rival Klepierre “wholly inadequate” and stood by plans to seal a £3.4 billion tie-up with Intu. The shopping centre group branded a takeover approach from Klepierre “wholly inadequate” and stood by plans for a tie-up with Intu. Shares in Carpetright have plunged on reports the struggling retailer may close stores and axe jobs as it pieces together a rescue plan.