George O'Connor, analyst at Panmure Gordon, is pencilling in net funds of £175 million. 'The cash pile can be used for mergers and acquisitions or indeed increased returns for investors - the dividend is 3.1 times covered,' he says.
Investors will question whether or not Aveva
can confirm that the 'strong end of the year' will continue into 2013 and its concerns about the outlook for nuclear, which accounts for about 5 per cent of the company's business.
was quick to quash these concerns. 'Aveva has a long history and track record of successful projects in different types of power.
Power demand is driven by concerns over capacity and mix, renewable and eco commitments, replacement cycles and that nuclear is the only alternative for the next 20 years to meet demand.'
has a 'hold' recommendation on the stock.
acknowledges positives such as the potential for a special dividend given the cash mountain, the positive outlook for Asia Pacific and interest from software firm Misys shareholders.
also points out that given the macro headwinds, currency exposure