AVEVA Group PLC (LON:AVV) revealed it has grown like-for-like revenues by around 10% year-on-year in the first two months of its current financial year.
The shares rose 3.6% to 3,842p after the engineering software giant said it had made a good start to fiscal 2022.
The company, which is making a presentation to investors and investment analysts later today, has unveiled some new financial targets for the period to the end of March 2026.
The forecasts, based on an organic constant currency basis, assumes that the global economic outlook is “stable to moderately growing” and that trends toward digitalisation continue at current rates.
AVEVA and Wood, the global consulting and engineering company partner to launch a new industrial solution accelerating #digitaltransformation and achieving #sustainability goals across Power, Energy, Chemicals and Mining.
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— AVEVA (@AVEVAGroup) June 30, 2021
AVEVA is targeting a compound annual growth rate (CAGR) of around 10%, with recurring revenue accounting for more than four-fifths of total revenue.
Revenue growth will be supported by revenue synergies relating to the OSIsoft acquisition, which are expected to be at least $100 million in fiscal 2026.
The FTSE 100 company is expecting to achieve an EBIT (earnings before interest and tax) margin of at least 35% and cash conversion of 100%.