24th May 2016 06:40
LONDON (Alliance News) - Engineering software company AVEVA Group PLC on Tuesday said its pretax profit fell in the financial year to the end of March due to one-off costs, while revenue also declined amid tough end-market conditions.
The FTSE 250-listed company, which last year saw a proposed reverse takeover by French energy company Schneider Electric SA collapse, said its pretax profit for the year to March 31 fell to GBP29.4 million from GBP54.9 million a year earlier.
The drop mostly was caused by costs related to the failed Schneider deal and by restructuring costs, particularly for headcount reductions as AVEVA looked to cut costs amid ongoing softness in its oil and gas end markets.
Revenue for the year fell to GBP201.5 million from GBP208.7 million, again due to weaker markets over the course of the year, but contract renewals were in line with expectations in the second half, with price increases achieved on multi-year contracts, AVEVA said.
AVEVA will pay a final dividend of 30.0 pence per share, up 20% from 25.0p a year earlier, which it said reflected its confidence on its outlook. Total payout for the year will rise 18% to 36.0p from 30.5p.
"The result for the year has highlighted the strength of the AVEVA business model, the value that our technology delivers to our customers and our ability to adapt to changing market conditions through a disciplined approach to innovation and organisational efficiency. Whilst we recognise the challenges in our markets, the board is confident that we can achieve our targets in the current financial year and over the medium term," said Chief Executive Richard Longdon.
By Sam Unsted; [email protected]; @SamUAtAlliance
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