Aveva beats flat IT spending to bring shares to all-time highs

SHARES in IT systems group Aveva hit a record high yesterday as the company said it had beaten a general slowdown in computer spending and difficult currency headwinds in the six months to October.

The company said it had seen “good revenue growth over the same period last year”, suggesting it had outperformed the sector on the whole. Data released yesterday by advisory firm CEB said IT budgets were expected to stagnate this year and next year, with firms concentrating on “keeping the lights on” rather than improving infrastructure.

Aveva’s performance moved shares up 2.36 per cent to 2,037p, a record level and 42 per cent up since the start of the year. David Toms at Numis Securities, who rates Aveva as a “buy”, predicted sales had risen around 11 per cent over the period.

The firm said its oil and gas businesses continued to be the key driver of sales, while the engineering and designs division had also done well. Aveva also said that Bocad, the steel detailing software business the company bought in May for £14m, had performed “in line with expectations”. The firm announces full results on 12 November.