Record-breaking AVEVA set for further global expansion
Cambridge engineering software company AVEVA rolled out record revenues and revealed plans for further global expansion in 2011.
Chief executive Richard Longdon, hailing record revenues of £174 million – a 17 per cent increase year-on-year – said an expansion strategy in Latin America, China and India was on track.
So were plans to roll-out further enhancements to AVEVA’s current product portfolio and new products later in the year, he said.
One of the world's leading providers of engineering data and design IT systems for the plant, power and marine industries, AVEVA saw some profit-taking on early trading as the share price dipped in London 51p to 1527p, a fall of 3.25 per cent.
Longdon said that 14 per cent of the revenue increase for the year to March 31 was organic. The performance underlined how far the company has travelled since its early years within the University as CadCentre.
The adjusted profit before tax for the year was up eight per cent to £54.7m and the reported pre-tax profit slightly ahead at £49.8m (2010: £49.6m).
AVEVA increased the final dividend to 14.89p (13.90p) taking the total dividend eight per cent higher year-on-year to 18.25p.
The company reports a strong balance sheet with net cash and deposits at period-end of £153.2m (2010: £149.7m).
The results were fortified by a strong performance in high growth markets including the BRIC countries – Brazil, Russia, India and China. AVEVA maintained a technology leadership position with investment in R & D up 34 per cent to £28.1m.
Longdon said AVEVA had also benefited from a reorganisation of the business into Enterprise Solutions and Engineering and Design Systems divisions.
Longdon said: “In the last quarter we have effected a significant reorganisation across the group to place greater emphasis and focus on AVEVA NET and associated products.”
AVEVA hired more than 90 people across the group during the year, with the largest number of new hires in Asia. This was in addition to the 89 staff that joined as part of the acquisitions of ADB (23) and Logimatic (66).
In a separate move, AVEVA has forged a strategic alliance with Logica, a business and service technology company, to capitalise on the growing demand for information management solutions.
The collaboration draws on AVEVA’s Enterprise Solutions portfolio, including AVEVA NET, and Logica’s professional services to address complex customer needs in asset intensive industries.
AVEVA and Logica will work together on a number of joint opportunities, enabling customers to take advantage of the unique combination of information management solutions built on decades of domain knowledge.
The partners will also jointly provide a managed service capability to optimise clients’ complex engineering projects and through-life management of digital assets.