London Markets

Oct. 12, 2020, 8:09 a.m. EDT

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

By Steve Goldstein

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.

Aveva (LON:UK:AVV) 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.

Rolls-Royce (LON:UK:RR) , meanwhile, continued its meteoric rise, advancing 4.8%. The troubled engine maker has surged 87% over the last five days.

The broader FTSE 100 (FTSE:UK:UKX) 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 (XTUP:GBPUSD) 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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