AVEVA growth will get nuclear charge
AVEVA CEO Richard Longdon has forecast a fresh surge of global growth for the Cambridge UK engineering technology business after a thumping set of full year results and signs of a potential bonanza in oil & gas and the nuclear power new-build sector in China and India.
Profit-takers were up with the lark to cash in on the international powerhouse that AVEVA has become. It started the day with a market cap of £1.56 billion.
AVEVA’s full-year revenues were up 12 per cent to £220.2 million, pre-tax profit 10 per cent ahead to £63.6m and net cash increased six per cent to £190.4m. The company saw good growth from Engineering & Design Systems, where revenue was up 10 per cent to a record £189.5m.
Longdon has presided over another excellent year of growth for a business that started life as government roll-out CADCentre within Cambridge University in 1967.
He said: “As a truly international company selling world leading technology into global industries we have been able to benefit from the positive fundamentals in many of our markets.
“Our goal is to deliver sustainable, strong, long-term earnings growth. Our global platform and technology leadership have been key to delivering this expansion, even during a period of severe economic uncertainty.
“We expect to see further growth in the Oil & Gas industry in coming years and a solid demand backdrop in Power, underpinned by nuclear new-build in China and India in particular. Against this backdrop we view the outlook for 2013/14 with confidence.”
Longdon was particularly pleased the the company had been able to expand its technology portfolio during the year. He said: “From a technology perspective it has been a most exciting year and we continue to build on our leadership position.
“We have delivered the successful commercial launch of AVEVA E3D, a major new platform focused on plant design for ‘lean construction’, which we believe will create significant efficiencies for our customers and raise the competitive benchmark for the plant design industry.
“We have also released a number of other exciting new products in the schematics and enterprise solutions portfolios. We also continue to add to our technology capabilities through acquisition, with Bocad and Global Majic both being acquired during the year.”
Territory-wise EMEA (Europe, Middle East and Africa) once again delivered good growth with revenue up 15 per cent over the prior year with expansion within the larger global EPCs and owner operators the key drivers together with strong regional performance in the UK, Russia and Middle East.
Revenue growth in the Americas was three per cent and was negatively affected by a slowdown in Brazil, where demand was impacted by delays in project awards to customers.
“We do expect the situation to improve in 2013/14 and see the long-term market opportunity as undiminished,” said Longdon.
In Asia Pacific, AVEVA saw its China operations continue to make progress, with strong licence growth over the previous year despite the continued subdued demand in Marine across the region.
Total headcount over the year increased by 262 people to 1,317. The company provides engineering design, information management solutions and CAD/CAM software; including specialised technology consulting services for the plant, power and marine industries.