AVEVA Group delivers strong results and makes continued progress against medium-term targets

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AVEVA Group (LON:AVV) has announced its results for the six months ended 30 September 2019.

Summary results

Six months ended 30 September	H1 FY20	H1 FY19	Change
Revenue¹	£391.9m	£336.5m	16.5%
Recurring revenue²	£242.5m	£170.7m	42.1%
Adjusted EBIT³	£90.6m	£54.4m	66.5%
Adjusted EBIT margin	23.1%	16.2%	+690bps
Profit/(Loss) before tax	£24.0m	£(5.5)m	–
Adjusted³ diluted earnings per share	43.31p	26.25p	65.0%
Diluted earnings per share	11.13p	(3.61)p	–

Highlights

· Revenue grew 16.5% to £391.9m (H1 FY19: £336.5m)

· Organic constant currency revenue⁴ growth of 11.9% reflected strong sales execution and benefited from early contract renewals

· Good growth across all geographic regions with Asia Pacific showing particular strength. Each of the Business Units also grew, with particularly strong growth in Engineering

· Recurring revenue up 42.1% to £242.5m (H1 FY19: £170.7m) representing 61.9% of total revenue (H1 FY19: 50.7%)

· Adjusted EBIT up 66.5% to £90.6m (H1 FY19: £54.4m). Constant currency adjusted EBIT grew by 46.5%

· Interim dividend up 10.7% to 15.5 pence per share (H1 FY19: 14.0 pence)

· Net cash and deposits of £58.6m following payment of the final dividend and acquisition of MaxGrip (FY19: £127.8m)

· Strong progress on product integration with the launch of AVEVA Unified Engineering and AVEVA Unified Operations Control Centre

· Outlook remains positive

Chief Executive Officer, Craig Hayman said:
“AVEVA delivered a strong set of first half results. Recurring revenue accelerated as a proportion of overall revenue. Overall revenue grew above the industry growth rate and adjusted EBIT margins also grew significantly. We made good progress against our medium-term targets.
I’m pleased with these results and proud of the focus and execution at AVEVA that is realising our ambition and vision for the digitalisation of the industrial world. By working to understand our customers’ needs, delivering innovation to accelerate their digital transformation and meticulous business execution, we are producing on all fronts and continue to recruit globally for world class talent.
Looking ahead, we see strong demand for digitalisation and industrial software within the industries we serve and remain confident in the outlook.”

Notes

¹ Revenue is shown on a statutory basis. In H1 FY19 revenue was also shown on a pro forma basis.

²Recurring revenue is defined as rental and subscriptions software licence revenue plus support and maintenance revenue.

³ Adjusted Earnings Before Interest and Tax (EBIT) and adjusted earnings per share are calculated before amortisation of intangible assets (excluding other software), share-based payments, gain/loss on fair value of forward foreign exchange contracts and exceptional items. Adjusted earnings per share also includes the tax effects of these adjustments.

⁴ Organic constant currency revenue excludes the reverse acquisition accounting adjustment to deferred revenue of £6.5m in H1 FY19; a currency translation benefit of £10.8m in H1 FY20; and adjusts for the disposal of Wonderware Italy and the acquisition of MaxGrip.