Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Aveva Group predicts growth ahead as Schneider merger beds down

The engineering software group has targeted annual cost savings of £25mln by 2020
factory
Digitalisation is gathering pace

Aveva Group PLC (LON:AVV) unveiled a cost savings programme and predicted strong growth ahead this year as industrial automation gathers pace.

The engineering software group has targeted annual cost savings of £25mln by 2020 following its merger with French group Schneider.

READ: Aveva shares soar as it confirms merger with Schneider Electric’s software arm

After two years of talks, the two companies finally agreed a £3bn deal that saw Schneider shareholders end up with a 60% stake in the enlarged company.

In the year to end-March, profits for the combined business on a pro-forma business rose 7% to £163mln allowing for one-off costs, while revenues rose 9% to £705mln.

The original Aveva business increased sales by 15%, while Schneider’s revenues climbed 5.4%.

Craig Hayman, chief executive, predicted a strong year ahead as the pace of robotisation in industry steps up.

"There is an accelerating, secular trend toward the digitalisation of industry and the combined group is uniquely placed to capture this opportunity,“ he said.

Shares soared 14% to 2,874p.

View full AVV profile View Profile

Aveva Group Timeline

Related Articles

1531831763_3U2A9699.jpg
July 17 2018
Last week, the Toronto-listed firm said it was buying buying Satellite Truss Ltd for C$1.2mln taking it into the eastern Ontario market

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use