Warning on currency, contracts sends Aveva down 22 percent

* Will take 14 mln stg hit from currency, contract timings

* Shares (Frankfurt: DI6.F - news) fall to two-year low (Adds details, shares)

Sept 12 (Reuters) - Aveva Group Plc (Other OTC: AVEVF - news) , a British company whose software is used to design ships and nuclear power stations, said it would take a 14 million pound (22.76 million US dollar) hit from currency movements and the timing of contract renewals, sending its shares down 22 percent.

The company said a reorganisation of its sales operation would also restrict first-half revenue, and it had also seen mixed demand for its products, with a reduction in South America and parts of Asia set against double-digit growth in China.

Aveva said its first-half revenue would be in the range 84 million to 90 million pounds, dependent on the timing of contract signings.

Analysts at Liberum said the forecast was well below consensus of 107 million pounds, and they expected estimates to be cut.

The warning sent Aveva's shares to the lowest level since July 2012. They were trading down 20 percent at 1,736 pence at 0716 GMT, giving the group a market capitalisation of 1.1 billion pounds. (1 US dollar = 0.6151 British pound) (Reporting by Paul Sandle, editing by William Hardy)