Aveva: Interim Results for the six months ended 30 September 2014

AVEVA Group plc, one of the world’s leading providers of engineering data and design IT systems, announced its interim results for the six months ended 30 September 2014.

Highlights

Revenue of £85.9 million (2013 – £108.5 million), in line with the revised guidance issued in the mid- September trading update
Mixed regional trading backdrop, with areas of strength such as China, India and parts of EMEA offset by a weak performance from South Korea and Brazil
Revenue affected by a material strengthening of sterling against the exchange rates of many of the currencies in which the Group operates
Strong sales of AVEVA Everything 3D™ (AVEVA E3D), now a meaningful contributor to revenue, with an acceleration in larger deals during the period
Negotiated new multi-year deals with Global Accounts at improved pricing, with AVEVA E3D an important driver. As a result, business visibility has increased with an incremental revenue opportunity of more than £30 million illustrating the potential further pricing upside from AVEVA E3D going forward
Innovation has remained strong in the period, with Cloud-based AVEVA E3D now being tested by multiple customers, and the availability of new advanced asset visualisation capabilities
After thorough review of planned investment, a cost efficiency programme is now in place which will deliver an estimated £10 million in savings in H2 compared to our original plan
We anticipate a result in line with the Board’s current expectations for the full year

Commenting on the outlook, Chief Executive Richard Longdon said:

“Whilst the first half financial performance has been disappointing, the underlying fundamentals of the business have not changed given our market leading technology and long-term customer relationships. Despite the macro-economic environment, there are a number of steps we are proactively taking to ensure that we remain focused on long-term growth in revenue and profitability. We continue to maintain a strong balance sheet, with high levels of cash generation and highly defensible positions in our chosen markets, all of which are underpinned by long-term structural growth drivers. As a result, we anticipate achieving a result in the current fiscal year in line with the Board’s expectations”
Source: AVEVA Group