Worldwide growth underpins record year at AVEVA
AVEVA Group, one of the world’s leading providers of engineering data and design IT systems, achieved a record year of revenue, profit and cash growth for the year ended March 31.
Revenues were up 15 per cent to £65.9 million (2005: £57.2m) while recurring revenues were up 26 per cent at £40.9m (2005: £32.4m) and now account for 62 per cent of total revenue (2005: 57 per cent). Pre-tax profit was up over 22 per cent to £11.2m (2005: £9.1m).
The Cambridge company attributed the record year to a strong performance across all regions and in its key markets of oil and gas, power and marine as well as an acceleration in orders from emerging markets such as Russia and South America.
In oil and gas alone over £130 billion of projects are envisaged over the next 10 years for new refineries and petrochemical plants. LNG projects feature heavily throughout the AVEVA process and marine customer base, with LNG being the world’s fastest growing fuel. Annual capex on LNG terminals and carriers is set to top £9 billion by 2009.
Revenue from the Americas reached £11.1m (2005: £9.4m), representing 17 per cent of turnover during the year, achieved in a year that presented some significant challenges to AVEVA’s major industries, including Hurricane Katrina, which affected several of its customers and their facilities.
Of particular note was AVEVA’s work with DuPont whose Mississippi facilities were severely impacted by Katrina. AVEVA received a special commendation for its outstanding round the clock support in recovering a plant designed using AVEVA’s tools which had been totally submerged.
Investment in AVEVA’s Calgary, Canada, office has continued to address the upsurge in oil and gas projects in Alberta.
In South America AVEVA was also successful in encouraging customers to use several AVEVA products on multiple projects. This business grew in excess of the market across the region.
The Asia Pacific business continued to deliver good growth and at £23.7m (2005: £20.2m), revenue now represents 36 per cent of AVEVA’s turnover. Expansion is still high on the agenda and AVEVA now employs a team of 130 highly qualified staff spread across the its eleven offices in the region.
Korea is one of the standout regions and accounts for almost 30 per cent of the total Asia Pacific business. Success in the Korean shipbuilding market is now being translated to Japan as the country enters a major investment phase in its marine industries.
AVEVA is strongly positioned to capitalise on the replacement systems market, where Japan has more in-house technology than any other region.
China continues to be produce significant growth in process, marine and power sectors and AVEVA is focused on the design institutes and companies active in the rapidly growing market for power generation in China.
Central, Eastern and Southern Europe produced £17.0m in revenue (2005: £14.7m). AVEVA is winning new business in connection with the growing nuclear power industry. Framatome is one of its major customers in this area and AVEVA is capturing further projects with other companies related to Framatome through its parent Areva.
Further East, the company has completed the opening of a Moscow office, focused on the process industry, which complements our presence in St Petersburg focused on more specialist marine products.
Western Europe, Middle East and Africa brought in £14.2m (2005: £12.9m). The main driver for business in this region continues to come from the oil and gas industry. The strength of the oil and gas sector led to a slightly stronger order intake in the last six months of the year than expected.