Solid trading continues at Aveva

27th Jan 2014 07:18

- Steady trading since last update in November- Mixed trading across geographical regions- Forex volatility continuesEngineering software firm AVEVA said, since its last update in November, the group has continued to perform well amid soft market conditions in Latin America and with good progress in the US and Canada.The provider of software for major construction projects - from power stations to oil rigs - added that the Asia Pacific region continues to grow at a steady rate, with continued strength in South Korea outweighing the generally weaker economic conditions in China.Aveva highlighted that trading since October 1st 2013 in Europe, the Middle East and Africa region continues to be hurt by lower than expected revenue growth in Enterprise Solutions, as well as some continued weakness in Russia and the Middle East.In its last update, the group warned that sales were hurt by the bankruptcy of shipbuilding firm OSX Brasil as well as the cancellation of an important oil and gas contract.Aveva also suffered currency exchange losses of over £2m because of it exposure to clients in India and China."In the first half of the financial year the group's revenue benefitted on a reported basis from sterling weakening against the euro and Korean Won, partially offset by a strengthening against the Japanese Yen. However, in the second half sterling has strengthened significantly making a negative foreign exchange translation impact more likely for the full year," the group said in today's company update.Aveva said its EDS business, which represents roughly 90% of group revenue, has continued to perform well during the period, with good demand for its design software and a number of strategic contract wins. Aveva said it maintains a strong balance sheet and continued to see solid cash generation in the third quarter.CJ