AVEVA cashes in on soaring demand for industrial software
The combined AVEVA-Schneider Electric business anchored in Cambridge has grown revenue and hoisted dividend after a transformative year to March 31.
Soaring global demand for industrial software has driven the expansion and resulted in shares rising 38p to 3472 on early UK trading – lifting the company’s market cap to £560 billion.
On a pro forma basis, revenue for the combined group grew 11.9 per cent to £775.2 million and adjusted EBIT increased to £184.5m from £154m. The final dividend was up 7.4 per cent to 29p a share. AVEVA retains net cash and deposits of £127.8m – up from £95.8m year-on-year.
Outlook remains positive and AVEVA is on-track to meet its medium-term targets, according to CEO Craig Hayman.
He said: “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. 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 per cent and improving AVEVA’s adjusted EBIT margin to 30 per cent.”