Chinese business revamp dents Aveva’s results
16 Nov 2011
Aveva, the Cambridge, UK-based engineering information technology company, saw the shine off its first half growth with the reorganisation of its Chinese business. The revenues of the engineering software company were up just 9 per cent as against 17 per cent growth in the same period last year.
The company provides software for design of oil rigs, ships and power stations and is in the process of merging two separate operations in China into one to help accelerate growth in the region. According to Richard Longdon, chief executive, the disruption knocked around £4 million to £5 million off sales.
Shares in Aveva that had gained over 10 per cent in value in the past year were down 4.7 per cent at £15.46.
Aveva's results received a strong boost on robust demand from offshore oil and gas companies, especially in Russia and eastern Europe, which sent revenues in Europe, the Middle East and Africa up 28 per cent in the six months to the end of September.
The company meanwhile, raised its interim dividend 19 per cent to 4p and said it planned to use a part of its £160 million of net cash for acquisitions, and for putting up offices in Chile and India, next year.
Overall revenues rose £85.2 million in the period, while pre-tax profits were up 3 per cent to £23.8 million and earnings per share were 24.32p, up 6 per cent from last time.
