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Aveva warns coronavirus weighing on China sales

Travel restrictions and office closures were impacting sales in the country, which accounts for 5% of Aveva's total revenues

Aveva Group - Aveva warns coronavirus weighing on China sales

Aveva Group PLC (LON:AVV) has warned that the coronavirus outbreak is beginning to weigh on sales in its Chinese market.

In a trading update for the 10 months to 31 January, the industrial software firm said travel restrictions and office closures in China as a result of authorities trying to contain the spread of the virus was “having some impact on sales”, with the country accounting for around 5% of its overall revenue.

READ: Aveva hails ongoing industry digitalisation as it swings to profit

Things seemed more positive in the rest of the business, with the company reporting “high single-digit” organic revenue growth in the first 10 months, supported by what it said was strong orders in its rental & subscription division, although this was offset by “significantly lower” turnover from its initial & perpetual licences and services.

Aveva added that it Asia-Pacific division had seen “good growth” despite the slowdown in China and had also made a good start to its fourth quarter.

The company also said its order pipeline for the final weeks of its current year was “solid”.

The shares were 0.6% higher at 5,320p in early trading on Thursday.

Quick facts: Aveva Group

Price: 3589 GBX

LSE:AVV
Market: LSE
Market Cap: £5.8 billion
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