AVEVA Group PLC (LON:AVV) have seen their shares dip as the firm warned shareholders about trading performance following the outbreak of the coronavirus.
Many global business have seen their performances hindered by the breakout of the coronavirus – as global governments and health organizations look to battle and contain the lethal disease.
AVEVA are the latest in line to be affected by the coronavirus – and the firm has issued a warning today.
The engineering firm noted that revenue has grown within its financial year, however said that the coronavirus is hurting operations in China.
AVEVA noted that the firm has achieved high singly digit organic constancy currency revenue growth in the ten month period to January 31.
The firm told the market that it had seen a high number of orders in its Rental and Subscription division, however this saw offset by “significantly” lower Initial & Perpetual licenses.
AVEVA added that ongoing health issues in China are hurting sales and trading in that country due to office closures, legislation and travel restriction. China has accounted for 5% of AVEVA’s revenues – which shows a big bruising for the firm.
The firm concluded by adding: “At a Group level AVEVA had a good start to the fourth quarter and the order pipeline for the remaining weeks of the financial year is solid.”
AVEVA’s mixed results
Last year, AVECA reported that it had seen a 11.9% rise in revenue to £775.2 million, alongside a 19.8% growth in adjusted earnings to £184.5 million.
Meanwhile, recurring revenue as a percentage of overall grew to 54.3% up 51.6% the year before.
This was attributed to the move towards digitalisation which had in turn boosted demand for industrial software.
Certainly, AVEVA are not the only firm which have been hurt by the coronavirus outbreak. The firm will hope that the battle can continue to stop the spread and contain cases so that China – an industrial heartland can continue trading in strong fashion.
Shares in AVEVA trade at 5,160p (-2.46%). 20/2/20 10:35BST.
