Aveva Group profits get boost from ongoing demand for industrial software
Source - SMW
Industrial software company Aveva Group said statutory profits grew by more than third amid ongoing growth in demand for industrial software.
For the 12 months ended 31 March, statutory pretax profit rose 35.4% to £45.7m and revenue rose 57.6% to £766.6m.
On a pro forma basis, revenue for the combined group grew 11.9% to £775.2m and adjusted earnings (EBIT) grew 19.8% to £184.5m.
Recurring revenue grew to 54.3% from 51.6% and pro forma adjusted EBIT margin increased to 23.8% from 22.2%.
The growth was driven by increasing demand for industrial software and good sales execution following the combination of heritage AVEVA with the heritage SES business, the company said.
In its oil & gas division, overall end market conditions were 'moderately positive,' with an increase in both capital and operating expenditure across the upstream, mid-stream and downstream segments, the company said.
But in its marine division, end market conditions remained subdued, though 'strong sales execution drove wins in growth areas, such as the construction of cruise ships, and product upgrades,' the company added.
The final dividend was up 7.4% to 29.0p per share.
'AVEVA delivered a strong performance in its first full year as a combined company and integration has progressed well across all functions of the business. Digitalisation is accelerating in the industries we serve, driving ongoing growth in demand for industrial software,' said Chief Executive Officer, Craig Hayman.
'AVEVA is well placed to capture this demand by working with its customers to turn opportunities into business value, delivering solutions across the asset and operations lifecycle.'
'We remain confident in the outlook and in meeting 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 to 60% and improving AVEVA's Adjusted EBIT margin to 30%.'