UPDATE 2-Aveva sales, pretax up, says trading tougher

Tue May 26, 2009 5:54am EDT
 
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* Year revenue up 29 pct to 164.0 mln pounds

* Analysts say no real surprises in numbers

* Adjusted pretax up 31 pct, just ahead of expectations

* Shares rise 4.6 percent

(Adds company comment, reaction, shares)

By Paul Sandle

LONDON, May 26 (Reuters) - Engineering software group Aveva (AVV.L) posted slightly better than expected full-year revenue and pretax profit, reflecting growth in the marine, oil and gas and power markets, but said trading was becoming more difficult.

Aveva, whose three-dimensional software is used to design ships, oil rigs, nuclear power stations and chemical plants, warned in April that customers were delaying projects and revenue would fall in the current year.

"Our concerns are largely short-term based around potentially the oil price and the availability of funding," Chief Executive Richard Longdon said in a call with reporters on Tuesday.

"Although talking to the customers that situation certainly hasn't got any worse since 16 April, and if anything it's improved slightly."

Aveva's shares, which fell more than 10 percent on the April announcement, were up 4.6 percent at 605.5 pence by 0953 GMT. Analysts said there were no real surprises in the numbers and the negative outlook was already included in 2010 forecasts.

"Overall estimates are relatively conservative and with signs of improvement in shipping and oil end markets, there may be upside to estimates as the year progresses," Jefferies International analyst Milan Radia said in a research note.

He forecast revenue would fall 13 percent in the current year to 139.0 million pounds ($221.1 million).

For the year to end-March Aveva posted a 29 percent rise in revenue to 164.0 million pounds and a 31 percent rise in adjusted pretax profit to 62.6 million.

Analysts had expected revenue of 159.5 million pounds and adjusted pretax profit of 61.9 million pounds, according to a company-supplied consensus of 17 analysts.

Aveva said the economic slowdown and the lower oil price and shipping rates were causing some projects to be postponed and cancelled, but its restructuring programme would help it trade through the difficult environment.  Continued...

 

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