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9 June, 2020 - 09:51 By Tony Quested

Shares rocket as AVEVA almost doubles profits in a year

Craig Hayman AVEVA

Cambridge-based industrial software business AVEVA produced a blockbusting set of results for the year to March 31, almost doubling profits on modestly higher revenues, with its Cloud activities stratospheric.

Profit before tax rocketed 97 per cent to £92 million on revenue 8.8 per cent ahead at £833.8m.

The share price soared 178.73p (4.45 per cent) to 4,200.36p when the UK stock market opened on Tuesday; AVEVA’s market capitalisation is now £6.82 billion.

While the company experienced growth across all territories, expansion in the Asia Pacific showed particular strength. All of the business units grew.

AVEVA reports a strong balance sheet with cash and deposits of £114.6m, no debt and strong cash collection post year-end.

Cloud income accelerated with an increase of some 200 per cent in total contract value.

The final dividend has been maintained at 29p per share reflecting confidence in AVEVA’s resilience, strong balance sheet position and ongoing cash generation, balanced with prudence regarding the global economic crisis. 

The company has not furloughed any employees or made any reductions to headcount related to COVID-19.

CEO Craig Hayman said: “The group has grown as we play a leading role in the digitalisation of the industrial world, which is being driven by a need for sustainability, the industrial internet of things, Cloud, data visualisation and artificial intelligence. 

“At the same time, we continued to drive operational improvement in the business, which is increasing recurring revenue and margins.

“AVEVA’s team has adapted impressively to the current market and operating environment. The safety of our employees is paramount and I was very pleased that we managed to deliver a successful close to our financial year with 95 per cent of employees working remotely. 

“We are focused on being digital in everything that we do, accelerating Cloud and driving the roll out of our subscription offering, AVEVA Flex.

“AVEVA is well placed to navigate through the challenges of the current environment, with the benefit of recurring revenue from multi-year contracts. AVEVA is in a strong position and our strategy and medium-term objectives remain unchanged.”

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