AVEVA posts solid first half as market conditions stabilise

The FTSE 250 firm said revenue increased 11.5% to £93.9m compared to the same time last year, while constant currency revenue rose 5.9%, with strong growth in the Asia Pacific region and stabilisation in the Europe-Middle East-Africa market.

Adjusted profit before tax was ahead 13.2% at £10.3m, while AVEVA’s reported loss before tax was £12.4m, which was a swing from a £5.5m reported profit at the same time last year.

The company’s board said that was the result of “exceptional costs” incurred in relation to the Schneider Electric Software business combination.

Constant currency adjusted profit before tax was up 16.1%.

AVEVA’s board said its full year outlook remained in line with the board's expectations, adding that preparation for the completion of the combination with Schneider was “on track”, with closure expected to be at or around the end of 2017.

It said a further update on the progress and timing would be provided “in due course”.

“I am pleased with AVEVA's performance in the first half,” said CEO James Kidd.

“Although we have yet to see a broad-based recovery in our end markets, we have seen solid growth in constant currency revenue and adjusted profit before tax.”

Kidd said that improved performance was partly driven by the changes made to the business last year, when the board simplified AVEVA's management structure, giving both greater decision-making capabilities and direct accountability for performance to the regions.

“The board remains confident in AVEVA's outlook for the full year and excited about the growth opportunities that the combination with the Schneider Electric Software business will bring.”

AVEVA released its interim figures at the same time as publishing those for Schneider Electric Software, ahead of the combination.