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AVEVA Group first-half profits surge following Schneider Electric merger

Published: 08:34 20 Nov 2018 GMT

power plant
Schneider has a 60% stake in the enlarged company

AVEVA Group PLC (LON:AVV) shares jumped at the opening bell on Tuesday after the British engineering firm saw profits soar by more than 50% in the first half of its financial year.

The FTSE 250 company merged with Schneider Electric’s software business this time last year in a deal worth more than £3bn.

READ: AVEVA confirms Schneider merger

Stripping out a hefty amortisation charge related to the merger, adjusted pre-tax profit surged 54% to rise in adjusted profit to £60.5mln (H1 17: £39.2mln) in the six months ended September 30.

Revenue climbed almost 11% to £343.0mln (H1 17: £309.4mln). AVEVA intends to pay an interim dividend of 14.0p.

“AVEVA delivered a good performance in the first half of the financial year,” said chief executive Craig Hayman.

“Sales execution was strong, integration is on-track and the results represent a good base to build on in the second half.”

He added: “We remain confident in the outlook and are making progress towards our medium-term targets of delivering revenue growth at least in-line with the industrial software market, increasing recurring revenue as a percentage of overall revenue and improving AVEVA's Adjusted EBIT margin to 30%.”

Shares climbed 6.3% to 2,854p in early deals on Tuesday.

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