Aveva is moving ahead nicely and on target for the full year with revenue up 9% to £85.2m during the first six months of the year. Demand from emerging markets continues to rise, but performance in EMEA was stronger than expected – up 28% to £41.1m – with Russia and Central Europe being the main drivers.
Now that it is organized into two segments, its easy to see where the growth comes from –while revenue from the information management-centric and services Enterprise Solutions division soared upwards by 50%, it rose just 4% in the more traditional Engineering and Design Systems segment, although with revenue for the period of £74.6m this is still the largest segment by a long way so it will take time for the business mix to shift. The respective growth figures do show that Aveva’s move to extend its portfolio was a good decision and looks set to pay off. In terms of profitability, adjusted profit before tax was £26.1m, which is a 6% improvement, but reported profit before tax was a more modest 3% £23.8m (vs £23.1m).
The outlook continues to look good for the rest of year although the company did not raise expectations. When you consider Aveva’s results alongside the more straightforwardly CAD/CAM-focussed Delcam (see Delcam carries strength into H2), its apparent there is ongoing demand in this area.