Global congolmerates circle £1bn engineering software firm

CONGOLMERATES from Europe and the US are reportedly circling the £1bn engineering software firm Aveva, following a shock profit warning for the firm.

US-based General Electric (GE), the French energy firm Schneider Electric, and energy company Emerson are all vying for the company, according to The Sunday Times.

Over £400m was wiped off the value of Aveva’s shares in September. According to the firm, foreign exchange rate volatility and contact timings.

Aveva has technology centres in Chesterfield, Manchester, London and Huntsville in the US, with global sales bases and a Cambridge headquarters.

The firm had revenues of £85.9m for 2014, down from £108.5m the year before according to its 2014 interim report. Adjusted pretax profit was also down by nearly half, coming in at £17.1m , a decrease from the 2013 high of £32.3m.

At the time, chief executive Richard Longdon said: “Whilst the financial performance for the first half of the year has been disappointing, the underlying fundamentals of the business have not changed, given our market-leading technology and long-term customer relationships.”