Shares in the UK’s biggest technology firm, Micro Focus International, have plunged after it warned of a sharper than expected fall in revenues and its chief executive resigned.
Shares in the company, whose customers include BMW and American Express, sank 55% to 849p in morning trading.
The problems stem from its purchase of Hewlett Packard Enterprise’s software business for £6.8bn.
Difficulties in integrating the business have hit revenues.
Micro Focus specialises in extending the life of clients’ older IT systems, saving them from having to buy new systems.
Its purchase of Hewlett Packard Enterprise saw it take over another former British computer business, Autonomy, which itself had been taken over by HP.
Micro Focus’s executive chairman, Kevin Loosemore, said operational issues had led to a “disappointing short-term performance” but that he remained confident in the firm’s strategy.
The company’s statement added that its cost savings drive was ahead of schedule and its net debt was expected to be in line with expectations.
Micro Focus said chief executive Chris Hsu was leaving, partly to spend more time with his family, and would be replaced by chief operating officer Stephen Murdoch.