Aveva says it remains resilient despite challenging market environment

9th Jul 2015 07:35

Aveva, a provider of engineering data and design IT systems said it remains a resilient business despite the challenging market environment.In a trading update for the period to 1 April ahead of its annual general meeting, the company said revenue and profit in the first quarter have continued to be negatively impacted by currency translation due to a further strengthening of sterling.As indicated at the time of the full year results, Aveva expects profit to be more weighted towards the second half as the company will not realise the full benefit of recent cost efficiency measures until then.It added that the integration of the recently acquired businesses - 8over8 and FabTrol - is progressing well.The company said it maintains a strong balance sheet and continued to see solid cash generation in the first quarter, resulting in net cash of £119m at 30 June 2015.Subject to approval by shareholders at the AGM, the final dividend of 24.5p per share will be paid on 3 August 2015.Broker Panmure Gordon foresaw small downgrades to consensus earnings and sentiment after the engineering data and design IT systems provider's trading update.Analyst George O'Connor said that while the tone of the statement was "of the 'all in line' variety" the company highlighted challenging markets, currency impacts and a reminder that the year is second-half weighted.With the current share price trading for just shy of 22 times forecast earnings, there is "little room for negative news".Shares were broadly flat by mid morning on Thursday.