TOP NEWS: Aveva sees revenue growth and margin expansion in half year

(Alliance News) - Aveva Group PLC on Wednesday reported growth in the first half of its current ...

Alliance News 27 October, 2021 | 8:46AM
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(Alliance News) - Aveva Group PLC on Wednesday reported growth in the first half of its current financial year.

The engineering, design and information management software provider said its revenue grew by 9% in the six months to September 30 on a pro forma organic constant currency basis. This increase drove significant margin leverage and growth in adjusted earnings before interest and tax. For the first half of financial 2021, Aveva had reported revenue of GBP332.6 million.

The Cambridge-based company said all of its fee types grew, with a particularly strong contribution from the recently acquired OSIsoft business, the industrial data software firm which Aveva acquired for USD5.0 billion earlier this year.

Maintenance & Services revenue, meanwhile, increased at a low single-digit rate, while Subscription & Perpetual licence revenue grew at a mid- to high-teens rate.

Aveva said it will report its results for the six months ended September 30 on November 10.

"What the statement does not say is that the figures reported suggest that the second quarter was a little slower than the 11% reported in the first quarter," noted Steve Clayton, fund manager at Hargreaves Lansdown Select.

"The news of strong margin expansion is a positive, but the market's rather disinterested reaction to these numbers, marking the stock a few pennies lower, shows that the lack of any acceleration in the business was investors’ main focus," added Clayton.

Aveva shares were trading 1.3% lower in London on Wednesday morning at 3,592.00 pence each.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
AVEVA Group PLC 3,207.00 -

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