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Grand designs at Aveva

Aveva delivered a resilient first-half performance as it diversified away from oil and gas markets
November 13, 2015

Tepid demand from oil and gas and marine clients weighed on Aveva (AVV) in the six months to 30 September. Organic, constant-currency initial licence fees slumped 18 per cent at the engineering data and design software group, driving underlying pre-tax profit down a fifth to £13.7m.

IC TIP: Hold at 2036p

On the bright side, management hopes to cement the proposed deal with Schneider Electric by December, and complete it next summer. The complex transaction would see the French energy giant acquire a majority stake in Aveva in return for its software business, and promises a windfall for Aveva's shareholders of 885p in cash per share. Operationally, the result should be a business "without compare" that offers a full range of design, simulation, construction and operational feedback tools, the group's directors claim.

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