Engineering data and design IT systems provider Aveva is still in a comfortable position half way through the year, with revenue growth in double figures again and the company confident about its outlook.
For the six months to September 30 2012 revenue jumped 15% to £97.6m, including £2.1m from the May 2012 Bocad acquisition. PBT was up 8% to £25.8m, compared to a 16% increase at the end of the last financial year so this metric has slowed (see Aveva ends with a flourish). The company saw growth in all regions including 13% in EMEA, making it the second fastest region after Asia Pacific at 21%, and ahead of Americas with its 6% growth.
Aveva’s comfort levels have been aided by a 14% increase in recurring revenue to 69%, and the launch of Everything3D providing a new product to push off for additional growth in the next fiscal year.
Oil and gas continue to be the growth driver within the Engineering and Design Systems division, whose revenues grew 14%. Enterprise Solutions grew 16%, thanks to spending by oil super owners, owner operators and engineering contractors. A partnership with Infosys signed during the period is expected to “play a key role” in the development of the business unit and the two providers are working towards the development of a joint offering. Enterprise Solutions is strategically important to the business and it is growing but it is still a small part in terms of overall revenue - £12.1m, and in H1 the segment posted a £1.8m loss. The Infosys tie-up could aid growth but with no timeline for products as yet it is not a short-term accelerator, meanwhile Aveva is still making solid progress.