Weaker sterling helps push AVEVA revenue higher

Engineering data and IT system design provider AVEVA Group posted its preliminary results for the year to 31 March on Tuesday, with revenue up 7.1% to £215.8m, which the board said was assisted by currency translation.

The FTSE 250 firm said constant currency revenue was down 3.8%, with second half results excluding Latin America described as “flat” on a constant currency basis.

Recurring revenue was up to 76.9% of total revenue, from 76.4% in 2016, and adjusted profit before tax improved 7.4% to £55m.

Net cash from operating activities before tax increased 58.2% to £57.2m, with total net cash up 21.3% to £130.9m, despite increased dividend payments.

The board declared a final dividend of 27p per share, taking the total dividend to 40p per share - an increase of 11.1% year-on-year.

It described “strong progress” in executing its growth strategy, with “significant wins” with new customers in growth markets and industry verticals, with North America and Power said to be performing strongly.

“AVEVA's performance was resilient in the context of challenging conditions in our core Oil & Gas and Marine end markets,” said CEO James Kidd.

“This demonstrated the strength of our business model, with high levels of recurring revenue and continued strong cash generation.”

Kidd said the company made “good progress” in delivering against its growth strategy, with significant new order wins in the Owner Operator market, growing sales of its ‘More Than 3D’ products and success in broadening its end market exposure.

“Although the timing of a return to material demand growth in our core end markets is difficult to predict, I am confident that our strategy will deliver good growth in the medium-term and that AVEVA is well positioned to benefit from a recovery in our end markets.”