Aveva (AVV) – A high quality business but where is the margin of safety
The recent trading update from the leading engineering software provider to the plant, power and marine industries in respect of the 12 months ended 31 March 2015 reassured. We appreciate the cash generative attractions of this business but with its core markets in the doldrums the share price surely looks up with events?
The company confirmed that it expects results for the year to Mar 2015 to be in line with market expectations - pre-tax profit of £59.80m, eps of 69.80p supporting a dividend of 26.40p. As one broker pointed out this suggests solid renewals of rental contracts in the fourth quarter, which was a key risk, given prior profit warnings.
With 45% of revenues derived from oil and gas clearly AVV isn’t out of the woods…
Previous article Next article
