12th Sep 2014 06:46
LONDON (Alliance News) - AVEVA Group PLC Friday warned that it now expects its revenue to be between GBP84 million to GBP90 million in the first half of its current financial year, as results have been hit by the strength of sterling and the timing of key engineering, procurement and construction rental renewals.
The engineering data and design IT system provider had previously noted these issues at the time of its first quarter update in July, and on Friday said it expects them to hit first half revenues by about GBP14 million.
Additionally, it said it had seen a temporary hit from its sales force reorganisation and mixed levels of customer activity, as it saw reduced demand in South America and parts of Asia offset by double-digit growth in China.
The company continues to expect a heavier second half weighting than it has seen in previous years, as the benefits of its revamped selling strategy dubbed 'One AVEVA' come through. It said that, "in light of the performance to date" it would review its headcount growth plans and discretionary expenditure.
Despite the concerns about its revenue, AVEVA reiterated that its balance sheet and cash generation continued to be strong in the first half.
The company reported revenue of GBP108.5 million in the first half of its last financial year, up 11% on the previous year.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
AVV.L