Aveva cautions over orders

26th May 2009 07:17

Aveva's profits surged forward again last year, but the computer aided designer cautioned that the slowdown in global shipping and oil markets is now having an impact on orders. "As the current global economic slowdown continues and the oil price and shipping rates sit at lower levels than in recent years, some projects are now being postponed or cancelled, awaiting project funding or visibility of more certain times," chief executive Nick Prest said. Aveva's strong position in these markets helped profits last year surge by 32% to £59.2m, from £45m, on revenues up 29% to £164m. There was good growth in Asia Pacific and Central, Eastern and Southern European regions, where revenue increased 32% and 40% respectively. Recurring fees amounted to 57% of total revenue at £94.2m (2008 - £66.1m) and initial fees were £57.7m (2008 - £52.9m)."The restructuring programme already initiated means that Aveva is better equipped to successfully trade through the difficult trading environment whilst allowing the company to invest selectively in already identified important growth opportunities," Nick Prest added.The dividend for the year is 9.36p (2008 - 6.65p), an increase of 41%.