AVEVA share price rockets despite loss
Cambridge UK software business AVEVA saw its opening share price shoot up 54p (2.16 per cent) to 2,557.00 despite slipping into a pre-tax loss for the six months to September 30.
One of the cluster’s oldest and most mature technology companies, AVEVA is clearly seen by the market as a safe bet for future growth following the acquisition of Schneider Electric.
Serving the plant, oil & gas and marine industries, AVEVA reaped the benefits of a business overhaul by hoisting revenues 11.5 per cent to £93.9 million.
The adjusted profit before tax was 13.2 per cent higher to £10.3m but the pre-tax loss was £12.4m compared to a profit of £5.5m this time last year. AVEVA finished the trading period with almost seven per cent more cash at £133m.
CEO James Kidd (pictured above) said: “I am pleased with AVEVA's performance in the first half. Although we have yet to see a broad-based recovery in our end markets, we have seen solid growth in constant currency revenue and adjusted profit before tax.
“This improved performance was partly driven by the changes made to the business last year, when we simplified AVEVA's management structure, giving both greater decision-making capabilities and direct accountability for performance to our regions.
“The board remains confident in AVEVA's outlook for the full year and excited about the growth opportunities that the combination with the Schneider Electric software business will bring.”