Aveva staff cuts

Cambridge-based provider of engineering data and design software, Aveva, has announced that it will be reducing its workforce by 10 per cent amid difficult market conditions.

In a trading update, the company said that it expects full-year results to be in line with forecasts, but stated that funding difficulties had caused delays to major projects, placing greater scrutiny on future capital expenditure.

Software design orders for new-build ships have declined dramatically and the levels of funding available within the existing ship design order backlog have caused the group to forecast a significant decrease in new licence sales. This has also been reflected in its power-plant software division, where capital expenditure commitments have been put on hold.

However, despite increasing turbulence in its end markets, the company noted a strong balance sheet and expects a 45 per cent increase in net cash at the end of the year. It also expects revenue decline to be partly mitigated by a strong performance from Aveva Net, where it has a number of potential contracts in the pipeline.