Aveva reports good trading, sets 10% annual growth target

Aveva reported a good start to the year as the industrial software group set itself a target of 10% annual revenue growth over five years.

The FTSE 250 company is aiming for compound annual revenue growth of about 10% a year to the financial year ending in March 2026. The target will be supported by gains from Aveva's acquisition of OSIsoft, which are expected to be at least £100m in the final year of the period.

Aveva is also targeting recurring revenue at more than 80% of total revenue, an adjusted earnings margin of at least 35% and 100% cash conversion. Recurring revenue will be boosted by customers switching to subscriptions and the cloud.

The targets assume the global economic outlook is stable to moderately growing and that digitalisation trends continue at current rates.

"Aveva has had a good start to FY22, achieving approximately 10% revenue growth in the first two months of the financial year on an organic constant currency basis," the company said before a presentation to analysts and investors.

Shares of Aveva rose 3.3% to £38.30 at 08:37 BST.