Trading statement pushes AVEVA higher still
Shares in Cambridge based AVEVA Group, one of the world’s leading providers of engineering data and design IT systems, began to rocket when it flagged up a major profits increase for the full year to end-March.Shares in Cambridge based AVEVA Group, one of the world’s leading providers of engineering data and design IT systems, began to rocket when it flagged up a major profits increase for the full year to end-March.
The stock rose 29p – 2.48 per cent – to 1200 when the news hit the market. The company's shares have seen sharp gains in recent days - putting on ten per cent in one day last Friday.
A trading update revealed that AVEVA “expected to report profit before tax significantly ahead of current market consensus.”
The company will post its preliminary results on May 18 but chief executive Richard Longdon revealed: “AVEVA has continued to build on its success in the second half of the year. Our innovative products, strong relationships with some of the world’s leading companies and exposure to booming high growth markets, has resulted in a performance significantly ahead of expectations.”
He said AVEVA experienced strong trading in the second half of the year with continued good growth across the business. The company won a number of contracts from competitors in Central Europe and continues to exploit significant growth opportunities in the Asia Pacific region.
Prior to the year-end, AVEVA signed a material and strategic contract with Kawasaki Ship Building Corporation to supply the company’s marine solutions worth approximately £1 million in the first year, with recurring annual revenues thereafter. AVEVA has also benefited from signing a number of important new contracts earlier than expected.
It continued with the successful development of Vantage Enterprise Net (VNET), although investment and associated revenues were slightly behind expectations.
The pipeline of new business continues to strengthen as this relatively new solution gains greater market acceptance, says the company.