Aveva shares jump after the UK company reports an annual increase in operating profit
By Scott Kanowski
Investing.com — Shares of AVEVA Group plc (LON:) rose sharply on Wednesday after the British industrial software provider posted a 7.7% rise in its pro forma annual adjusted operating profit, reaching £365.1m, in part due to a jump in revenue thanks to strong demand for its data management products.
The company also said it had made “good progress” in its decision to integrate OSIsoft, the data management software maker it bought in 2020. Aveva added that it expects the agreement leads to pre-tax cash cost synergies of at least $30 million per year by the end of March next year.
“Aveva delivered a strong set of results in FY22 as the business recovered from the disruptions caused by the Covid pandemic,” Aveva CEO Peter Herweck said in a statement.
But Aveva warned that revenues are expected to fall in its next fiscal year, citing several factors including its ongoing transition to a subscription-based business model, wage inflation and the impact of the war in Ukraine on its Russian operations.
“[T]Considering all of these factors, revenue growth is expected to be lower in FY23 than in FY22 on an organic basis at constant currencies and adjusted EBIT margin is expected to decline, before resuming growth in FY24,” said Herweck.