Aveva PLC reported a sharp drop in underlying profits in what might be its last statement ahead of its takeover by Schneider Electric.
In September, the computer-based engineering group agreed to French partner Schneider acquiring the outstanding 41% of its shares at a price of 3,100p per share.
Underlying profits in the six months to end-September 2022 fell 42% to £72.9mln, while the group posted a pre-tax loss of £77.6mln (2021: £74.3mln) after amortisation charges.
Margins were hit by higher costs, particularly relating to planned investment including in R&D and selling & distribution, plus the return of certain expenses post-Covid, said the statement.
Revenues rose 7.3% to £554mln with annualised recurring revenues (ARR) 12% higher at £876mln.
“Aveva's business model transition to subscription and SaaS is accelerating with a good ARR progression,” said Peter Herweck, chief executive.