AVEVA GROUP PLC
AVEVA Group plc ('AVEVA' or 'the Group'), a global leader in engineering and industrial software, provides a trading update for the nine months ended 31 December 2018.
The trends seen in the first half continued into the third quarter and AVEVA delivered low double-digit revenue growth in the first nine months of the financial year. As in the first half, this growth included the impact of strong sales execution, with some benefit of upfront revenue recognition on multiyear rental contracts.
As planned, the revenue mix has been positive. Software sales grew at a faster rate compared to services resulting in a modest improvement in gross margin. Operating margin also improved, albeit with some additional costs being incurred due to a better than expected sales performance, together with investment to ensure that AVEVA is optimally positioned to capture future growth opportunities.
The integration of the heritage AVEVA and Schneider Electric industrial software business has progressed well. Notwithstanding the tougher comparative period in Q4, the outlook for full year remains positive.
AVEVA Group plc
Matt Springett, Head of Investor Relations
Tel: 01223 556 676
FTI Consulting LLP
Edward Bridges / Dwight Burden
Tel: 020 3727 1000
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.