Engineering software firm Aveva has warned investors sales have been stuttering due to falling oil prices.
The company is reliant on the oil and gas market for 45 per cent of its revenues, but says it is now “experiencing increased uncertainty and reduced visibility” in the sector which has been “exaggerated recently by the sharp decline in oil price”.
Many companies in the oil and gas sector have been working under budget constraints in recent months, as the price of crude oil has fallen to below $50 a barrel. The company added that there has been “subdued” growth other end markets, such as the power and marine sectors.
Despite the setbacks, however, Aveva maintains a strong balance sheet and finished 2014 with net cash of £120m.
Earlier this month the Oxford-based company bought 8over8, which provides risk management software to the oil and gas and infrastructure industry for £26.9m.
8over8’s clients include BG Group, BP and Shell. Aveva says the “integration process is progressing well.”
Shares in Aveva dropped 1.2 per cent in reaction to the news.