AVEVA Group plc (LON:AVV) announced its interim results for the six months ended 30 September 2018. The statutory results1 show standalone results for the heritage Schneider Electric Industrial Software Business (‘SES’) in the comparative period of the six months to September 2017. To provide further understanding of the combined trading performance and to improve transparency, non-statutory results are also shown for the combined Group on a pro forma basis2 for the six months to September 2018 and the six months to September 2017. Statutory and pro forma results are shown on an IFRS 15 basis in both periods.
Summary results
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Six months ended 30 September |
2018 |
2017 |
Change |
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Results shown on a combined pro forma basis2 |
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Revenue |
£343.0m |
£309.4m |
10.9% |
|
Adjusted3 profit before tax |
£60.5m |
£39.2m |
54.3% |
|
Adjusted3 diluted earnings per share |
29.48p |
20.85p |
41.4% |
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Statutory results shown on a reverse acquisition basis1 |
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Revenue |
£336.5m |
£215.1m |
56.4% |
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(Loss)/profit before tax |
£(5.5m) |
£7.8m |
– |
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Adjusted3 profit before tax |
£54.1m |
£28.6m |
89.2% |
|
Diluted (loss)/earnings per share |
(3.61p) |
7.0p |
– |
|
Adjusted3 diluted earnings per share |
26.25p |
26.40p |
(0.6)% |
Highlights
· On a pro forma basis, revenue for the combined Group grew 10.9% to £343.0m (H1 FY18: £309.4m) and adjusted profit before tax grew 54.3% to £60.5m (H1 FY18: £39.2m)
· On a statutory basis, revenue was up 56.4% to £336.5m (H1 FY18: £215.1m) principally as a result of only the heritage SES business numbers being reported in the comparative period. Loss before tax was £5.5m (H1 FY18: profit of £7.8m)
· Recurring revenue up 18.7% and adjusted PBT margin up 490bps
· Interim dividend 14.0 pence per share (H1 FY18: nil)
· Integration remains on track with new organisational structures in place across the Group, integrated product solutions developed and showcased to customers, and cost synergy programmes under way
· Net cash of £81.8m (FY18: £95.9m) following payment of full year dividend
· Full year outlook remains positive
Chief Executive Officer, Craig Hayman said:
“The industries that AVEVA serves are making increasing use of technology. This is being driven by ongoing secular trends driving growth in demand for industrial software. AVEVA is optimally placed to capture this demand due to its unique end-to-end product portfolio. AVEVA delivered a good performance in the first half of the financial year. Sales execution was strong, integration is on-track and the results represent a good base to build on in the second half. We remain confident in the outlook and are making progress towards our medium term targets of delivering revenue growth at least in-line with the industrial software market, increasing recurring revenue as a percentage of overall revenue and improving AVEVA’s Adjusted EBIT margin to 30%.”
