Aveva falls despite profit growth

Aveva, the Cambridge based engineering IT company has seen revenues rise 9% in the six months to the end of September compared to the same period of 2010.

Between April and September the firm made a total of £85.2m, producing profits before tax of £26.1m, a rise of 6% on 2010. Adjusted earnings per share rose 7% and net cash at the end of the period was £157.5m, compared to £10.1m in 2010.

The interim dividend was raised from 3.36p per share to 4p.

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Aveva says sales growth in emerging markets is strong and that recurring revenues make up 69% of total revenues.

Chief Executive Richard Longdon said of the outlook: "We are pleased with our progress in the first half, especially the development of the Enterprise Solutions business and the continued growth in Latin America and Russia."

Shares in Aveva were down 3% in early trading although over the last 12 months the company has risen 10%.

BS