South Korea opportunities for Aveva

Revenues were up 10 per cent on a constant currency basis. Although Aveva reported modest growth in Europe and many emerging markets, the group made further strong inroads into South Korea's ship building industry. A renewed focus on receivables also drove up the cash conversion rate by 5 percentage points to 102 per cent. Despite the £100m that went towards August's special dividend, the group retains substantial cash resources, allowing it to pursue an acquisition strategy designed to complement its existing businesses, particularly in North America.

The two divisions showed contrasting fortunes. Improved shipbuilding receipts underpinned a 12 per cent increase in revenues from Engineering & Design Systems, which embeds technology in major capital projects. However, the loss of two major clients pushed Enterprise Solutions, which offers software for the ongoing management of assets, into the red. Big oil companies are cutting back on the kind of discretionary spending that feeds Enterprise Solutions, management warned.