12th Oct 2020 08:32
(Alliance News) - Aveva Group PLC on Monday said it has performed "creditably" in the first half ended September 30 against a challenging backdrop and its outlook for financial 2021 remains unchanged.
Shares in the FTSE 100-listed software firm were down 3.7% at 4,560.00 pence each in London.
Aveva expects to report revenue of around GBP333 million for the first half, down from GBP391.9 in the first half of financial 2020.
"This is broadly in-line with the group's plan for the shape of the year, save for an increased forex translation headwind and two medium sized subscription deals slipping from Q2 into Q3," Aveva explained.
The industrial and business software provider said its order pipeline for the remainder of the financial year is strong, supported by a higher volume of contract renewals, including major Global Account contracts, as well as the contracts that slipped from the second quarter.
As such, Aveva said it expects to see solid revenue growth in the second half and is confident in the full-year outlook.
Separately, the Cambridge, England-based company said its proposed acquisition of OSIsoft LLC remains on track and that it is making progress on debt financing relating to the buyout.
Aveva in August agreed to acquire Softbank Group Corp-backed data management software firm OSIsoft for USD5.0 billion.
The deal is aimed at positioning Aveva to take part a shift by industrial companies toward software-based automation that helps factories run more efficiently. San Leandro, California-based OSIsoft's PI System is a system of record for data capture, storage, analysis and sharing of real-time industrial sensor-based data.
Aveva on Monday said it has completed syndication of a GBP250 million revolving credit facility, with HSBC Holdings PLC and Banco Santander SA joining JPMorgan Chase & Co, Barclays PLC and BNP Paribas SA as providers of the facility.
In regards to a USD900 million term loan for the OSIsoft acquisition, Aveva has decided against proceeding the loan to syndication. Instead, 60% shareholder Schneider Electric SE has agreed to provide the entire term loan to Aveva.
Aveva is slated to release its first half results on November 5.
By Tapan Panchal; [email protected]
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