Aveva slumps as software maker flags currency headwinds and deals taking longer to close

A street sign advises members of the public to “Maintain Social Distance” in Liverpool, northwest England, on October 12, 2020.

paul ellis/Agence France-Presse/Getty Images

Aveva Group shares slumped on Monday, with the U.K. software maker the worst-performing blue chip after reporting a 12% drop in sales in the first half.

shares dropped 4% as the engineering and industrial software company said its first-half revenue was “broadly” in line with its outlook for the year, “save for an increased FX [foreign exchange] translation headwind and two medium-sized subscription deals slipping from the second quarter into the third quarter.”

Aveva said organic revenue at constant currencies fell 12%, or a 7% drop when adjusting for the early renewal of an account that it previously disclosed.

meanwhile, continued its meteoric rise, advancing 4.8%. The troubled engine maker has surged 87% over the last five days.

The broader FTSE 100
wavered between gains and losses, rising 0.1% in afternoon trade. Action was muted with the U.S. bond market shut for the Columbus Day holiday.

The pound
slipped but stayed above the $1.30 level. The U.K. government is set to announce new restrictions, with Liverpool set to be placed in the highest COVID-19 risk category, according to its mayor.

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