AVEVA shares rocket on full year results
A strong second half, shaking off the worst effects of Covid, allied to a shrewd acquisition in the US has excited shareholders in Cambridge industrial software business AVEVA.
The UK share price shot up 165p this morning – more than five per cent – higher and put the market cap at £10.33 billion.
The surge appeared more down to potential success rather than past performance. Revenue for the year to March 31 was only fractionally down to £820.4 million (a fall of 1.6 per cent) but reported profit before tax bombed 62.8 per cent to £34.2m.
All things are relative in a pandemic-cursed business environment and AVEVA has multiple advantages going forward.
The group has just completed the acquisition of Californian company OSIsoft, LLC enhancing AVEVA’s ability to accelerate the digital transformation of the industrial world. OSIsoft is a manufacturer of application software for real-time data management.
The statutory results reflect 12 months of trading for standalone AVEVA and 13 days of trading for OSIsoft since the acquisition. The proposed final dividend of 23.5p represents a small increase versus the prior year.
CEO Peter Herweck said: “The last year has been transformational for AVEVA. The Group reacted quickly to the Covid crisis, so that despite a challenging first half, the second half saw double-digit revenue growth. At the same time, our transition to Subscription continues at pace.
“The acquisition of OSIsoft has established AVEVA as a clear global leader in operational industrial software, further enhancing our ability to lead the digital transformation of the industrial world, with a more diversified customer base, supporting their energy transition and sustainability journeys.
“Initial customer feedback on the combination of AVEVA and OSIsoft has been extremely positive and I look forward to capturing the significant value opportunity over the coming years.
“Although early in the financial year, trading has started well for the enlarged AVEVA Group and it is performing in-line with our expectations.”