With the announcement that its Enterprise Solutions division has moved into profitability for the first time, Aveva is starting to enjoy the benefits of its extension into the information management solutions and services space. That was the key message from today’s post year end trading update. The update is the latest in a line of comforting announcements from the provider of engineering data and design IT systems, although the Enterprise Solutions milestone will not change full year results (to March 31 2013) which are expected to be in line with consensus forecasts for revenue and profit.
There is little change in the business since the last update in January (see Steady Aveva) – H2 appears to have gone well driven by the oil and gas sector. Power was steady, while marine is still depressed. What the update does indicate is that the company is overcoming weakness in the Latin American market with momentum in China, indicating the need to invest in multiple high growth regions. Aveva is sitting comfortably in it sector, performing better than Autodesk but probably not as strongly as Delcam (see here).