ENGINEERING software company Aveva saw its shares fall 7.83 per cent yesterday as investors reacted to disappointing growth during the first half of the year.
Investors focused on results from the company’s enterprise division, which saw growth of only five per cent – growth of 20 per cent had been expected – on the back of a major Latin American shipyard abandoning plans to roll out Aveva’s software following financial difficulties.
Otherwise the company reported growth largely in line with expectations, revenue grew 11 per cent to £108.5m with profit growth of six per cent to £27.3m.
“The pipeline for the Enterprise Solutions division remains substantial, and we remain confident of the long-term potential in this business,” said chief executive Richard Longdon.
“Aveva remains well positioned with broad exposure to multiple growth markets and high recurring revenues.”
Analysts at Liberum Capital said they expected consensus revenue to be cut three per cent but they do not expect changes to consensus adjusted pre-tax profit of £80m given that the enterprise division had much lower margins.
“The emerging Enterprise Solutions division has disappointed and revenue is now expected to be flat year-on-year in financial year 2014 versus prior expectations of 20 per cent growth,” they said.
Aveva’s share price closed at 2,364.9p per share yesterday on news of the results.