The group, which updates mainframe legacy software for companies such as Tesco, reported adjusted pretax profit of $115.9 million (70.6 million pounds) for the year to end-April, up from $88.6 million, on revenue of $274.7 million, up 20.4 percent.

Analysts had expected the group to post adjusted pretax profit of $114.4 million on sales of $275.8 million, according to a company-supplied consensus of 15 forecasts.

The company entered the application testing market earlier this year through the acquisition of Compuware Corp, and on June 18 trumped a rival bidder with an $88 million offer for Borland Software Corp .

It said it was confident it would continue to deliver superior shareholder returns, although the Compuware acquisition was expected to reduce the overall group margin.

The company is paying a final dividend of 11.1 cents a share, giving a total payout for the year of 15.6 cents, up 20 percent.

(Reporting by Paul Sandle)