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June 14, 2018, 3:55 a.m. EDT

Aveva 2018 profit falls 34% on reverse takeover

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By Oliver Griffin

Aveva Group PLC (AVV.LN) reported Thursday a 34% fall in pro-forma pretax profit for fiscal 2018, after booking a number of exceptional and other one-off costs, some of which relate to its reverse acquisition by France's Schneider Electric SE (SU.FR).

The industrial-software company said that pro-forma pretax profit, which is adjusted to assume that the combined company has been in operation for the whole year, fell to 64.6 million pounds ($86.5 million), from GBP98.3 million a year earlier. Revenue on the same basis rose to GBP704.6 million, from GBP648.7 million.

Pro-forma adjusted earnings before interest and tax, the company's preferred measure which strips out exceptionals and other one-off items, rose to GBP165.6 million, from GBP152.0 million.

Aveva and Schneider announced in September that the French company would fold its software assets into its U.K. counterpart's operations and pay it GBP550 million for a 60% stake in the combined entity. The deal completed on March 1.

Aveva said that good progress has been made in the integration of the two businesses and that it is targeting annualized cost synergies of approximately 5% of total fiscal 2018 costs, or around GBP25 million. The synergies are expected to be fully implemented by the end of the 2020 financial year.

Aveva said it proposed to maintain its final dividend at 27 pence per share.

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