for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

UK software company AVEVA sees growth after tough first half

LONDON (Reuters) - British industrial software provider AVEVA AVV.L said it expected to return to revenue growth in the second half after weakness in oil and gas markets and the slippage of two subscription deals, sending its shares to a three-month low.

The company, which agreed to buy Softbank-backed OSIsoft for an enterprise value of $5 billion in August, reported revenue of 332.6 million pounds, down 15% as the company guided last month, and adjusted earnings of 56.3 million pounds for the six months to end-September.

Chief Executive Craig Hayman said given the COVID-19 disruption, AVEVA had performed creditably in what had been a relatively tough trading environment.

Chief Finance Officer James Kidd said the company expected to achieve year-on-year revenue growth in the second half.

“Our pipeline is strong and we have a large number of renewals due in the second half,” he said in an interview.

He said the OSIsoft acquisition was on track. “We are working through the regulatory approvals, we expect the deal to close between December and February, and the rights issue will be announced very soon,” he said. The company plans to raise $3.5 billion of the cost of the acquisition via a rights issue.

Reporting by Paul Sandle; editing by David Evans

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up