Aveva Group first-half profits jump on rising software demand
Source - SMW
Industrial software company Aveva Group said Tuesday first-half profits rose sharply on a pro-forma basis, supported by ongoing growth in demand for industrial software.
For the six months ended 30 September, adjusted pretax profit of rose 54.3% to £60.5m and revenue rose 11% to £343m on a pro forma basis.
On a statutory basis, the company reported a loss before tax of £5.5m compared with a profit of £7.8m a year earlier, while revenue was up 56.4% to £336.5m.
The loss was attributed to costs related to Aveva's tie up with the heritage Schneider Electric Industrial Software Business.
Aveva said the integration of two businesses remained were on track with new organisational structures in place across the group, integrated product solutions developed and showcased to customers, while cost synergy programmes were underway.
The company declared an interim dividend 14.0p a share.
'The industries that AVEVA serves are making increasing use of technology. This is being driven by ongoing secular trends driving growth in demand for industrial software. AVEVA is optimally placed to capture this demand due to its unique end-to-end product portfolio. AVEVA delivered a good performance in the first half of the financial year, said Chief Executive Officer, Craig Hayman.
'Sales execution was strong, integration is on-track and the results represent a good base to build on in the second half. We remain confident in the outlook and are making progress towards our medium term targets of delivering revenue growth at least in-line with the industrial software market, increasing recurring revenue as a percentage of overall revenue and improving AVEVA's Adjusted EBIT margin to 30%.'
At 8:39am: (LON:AVV) AVEVA Group PLC share price was +109p at 2793p