There has been no change in trajectory at Aveva Group, as the new financial year started much as the old one ended with improvements across the business (see here). H2 will be the real test for the business though as this is when most large rental contracts come up for renewal.
It ended June with over £204m in cash and no debt. The Brazil business is picking up on the back of offshore and onshore contracts and in the growing Enterprise Solutions division, the signing of the first AVEVA NET deal in India was a milestone. Not surprisingly, India and China are growth markets for the engineering data and design IT system company. The other potential growth area is the still new AVEVA Everything3D product. The company is seeding the market - as of the end of Q1 20+ customers were engaged in evaluations or short term trial contracts which is in line with expectations. The conversion rate over the rest of the year will be the real proof point.
Aveva has a much narrower focus that Autodesk and that more specialist focus is paying dividends literally as well as in terms of overall business, as it plans a special dividend in addition to its final dividend.It remains a strong performer in a difficult market.