AVEVA shares rocket as buyers hoist market cap past $6bn
Investors gorged on the stock of Cambridge software business AVEVA as leading brokers issued ‘buy’ recommendations and flagged up growth potential for the company following the issue of the first results since the merger with France-based Schneider Electric.
The results, allied to rallies in AVEVA’s key global markets, helped spur the buyer frenzy, hoisting the share price 306p – more than 12 per cent – to 2,838; it lifted the market cap past £4.52 billion ($6.06bn).
AVEVA issued pro forma figures to demonstrate how the business would have traded in its current shape for the whole full year to March 31; they show a 20 per cent increase in pre-tax profits to £162.8 million, once share-based payments and a number of one-off charges are stripped out. AVEVA injected a further shot of confidence by maintaining its 27p per share dividend.
It resulted in AVEVA opening trading as the biggest riser on the FTSE All-Share index as the pro forma results showed revenue up 8.6 per cent to £704.6m.
CEO Craig Hayman (pictured) said: “The last 12 months have been transformational for AVEVA and the years ahead will be even more exciting as a global leader in industrial software.
“There is an accelerating, secular trend toward the digitalisation of industry and the combined group is uniquely placed to capture this opportunity.
“Our suite of proven solutions, deep sector expertise and global partner ecosystem, will help to drive innovation across the whole lifecycle of our customers’ assets: from design, through to operations and maintenance, maximising returns on investment to the capital intensive industries we serve.
“The integration of the business has begun in earnest to drive top-line synergies. I am excited about the opportunities that lie ahead of us and will be focused on driving profitable growth.”