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Aveva Group predicts growth ahead as Schneider merger beds down

The engineering software group has targeted annual cost savings of £25mln by 2020
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.

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