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Aveva hails ongoing industry digitalisation as it swings to profit

Ongoing “mega trends”, such as the internet of things and artificial intelligence, helped the software maker swing to a profit

Aveva Group -
The FTSE 100 company delivered 16.5% higher sales of its industrial software

Aveva Group PLC (LON:AVV) said it expects sales and profits to keep growing as digitalisation continues to drive demand for its industrial software.

In the six months to 30 September, the FTSE 100 company generated £24mln of profit before tax, swinging from a £5.5mln loss in the same period last year.

READ: Aveva gets growth boost from Asia Pacific

This was driven by revenue growth of 16.5% to £391.9mln on the back of “increasing use of technology” by industrial customers, said chief executive officer Craig Hayman, pointing to the continued advance of “mega trends” such as the internet of things and artificial intelligence.

Aveva’s Asia Pacific division was responsible for the biggest gains, with sales increasing 49% thanks to the company winning a “large multi-year contract” with a global customer in Australia.

Aveva enjoyed a big gain in its underlying profit margin to 23.1% in the first half of the year, from 16.2% last year, and is targeting an ambitious 30% in the medium-term future.

Hayman said he remained confident in the company’s outlook, thanks to “strong demand for digitalisation and industrial software”, also noting that recurring revenue had accelerated as a proportion of overall revenue.

Shares were up 2% to 4,338p in early deals on Tuesday. 

Quick facts: Aveva Group

Price: 4602 GBX

LSE:AVV
Market: LSE
Market Cap: £7.43 billion
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