AVEVA Group plc (LON:AVV) has announced its results for the year ended 31 March 2022.
Pro forma results1
· Annualised Recurring Revenue (ARR)2 increased 10.2% to £768.7m (FY21: £697.8m).
· On an organic constant currency basis3 pro forma revenue for the combined Group grew 7.1% and adjusted EBIT4 grew 7.7%.
· Revenue was £1,185.3 million (FY21: £820.4 million) after the impact of the deferred revenue haircut of £50.3 million (FY21: £3.3 million), representing an increase of 44.5%. This change was primarily due to the acquisition of OSIsoft.
· Loss from operations before tax was £6.5m (FY21: profit of £36.6m) with the loss being primarily due to the amortisation of intangible assets of £226.1m (FY21: £95.7m).
· Diluted loss per share was 20.8 pence (FY21: EPS 11.3 pence).
· Final dividend of 24.5 pence proposed representing an increase of 4.3% (FY21: 23.5 pence).
· Integration of the AVEVA and OSIsoft businesses has progressed well. During the year both revenue and cost synergies were in line with the plan while strong progress was made on product integration, which will drive substantial longer-term synergies.
|Combined AVEVA Group on a pro forma basis (unaudited)|
|Year ended 31 March||2022||2021||Change||Organic constant currency|
|Annualised recurring revenue||£768.7m||£697.8m||–||10.2%|
|Adjusted diluted earnings per share||99.6p||105.3p||(5.4)%||–|
|AVEVA Group plc statutory results|
|Year ended 31 March||2022||2021||Change|
|(Loss)/profit from operations||£(6.5)m||£36.6m||–|
|Basic (loss)/earnings per share||(20.8)p||11.4p||–|
|Diluted (loss)/earnings per share||(20.8)p||11.3p||–|
Chief Executive Officer, Peter Herweck said:
“AVEVA delivered a solid set of results in FY22 as the business recovered following disruption caused by the Covid pandemic. During the year we made good progress with the integration of OSIsoft and have recently launched integrated products that will drive further revenue synergies. I am excited about the opportunities ahead of us as AVEVA enables the connection and digitalisation of the industrial world. We are focused on accelerating growth in Annualised Recurring Revenue and expect AVEVA’s growth rate on this metric to significantly improve.”
1 On 19 March 2021, the Group announced the completion of the acquisition of OSIsoft, LLC (OSIsoft) enhancing AVEVA’s ability to accelerate the digital transformation of the industrial world. To provide a better understanding of the combined comparative trading performance and to improve transparency, non-statutory results are also shown for the combined Group on a pro forma basis. The Directors believe that the pro forma results give helpful insight into the performance of the Group and form a basis from which to consider the outlook.
Pro forma results include results for both AVEVA and OSIsoft for the 12 months to 31 March 2022 and the 12 months to 31 March 2021. In addition to this, the results have been adjusted to exclude the effect of the deferred revenue haircut under IFRS 3 (Business Combinations), which reduces statutory revenue.
2 ARR makes it easier to track recurring revenue progression by annualising revenue associated with subscription, cloud and Maintenance contracts. It removes timing differences caused by revenue recognition standards by annualising the revenue associated with contracts at a point in time. It is calculated on a constant currency basis.
3 Organic constant currency revenue and adjusted EBIT excludes a currency translation reduction of £42.5 million to revenue; and adjusts for the disposals of the Acquis Software, Termis Software and Water Loss Management Software businesses in June 2021 by removing the results of the disposals from each reporting period.
4 Adjusted metrics are calculated before amortisation of intangible assets, share-based payments and exceptional items. Adjusted Earnings Per Share also includes the tax effects of these adjustments. See note 1 Basis of Preparation.
5 Statutory results include the results for the combined AVEVA Group for the 12 months to 31 March 2022 compared to the results for AVEVA Group and 12 days of OSIsoft ownership for FY21.
Conference call details
AVEVA will host a call for analysts and investors at 9.30am BST today.
Conference call dial-in details:
UK: 020 3936 2999 / 0800 640 6441
USA: 1 855 9796 654 / 1 646 664 1960
All other locations: +44 20 3936 2999
Conference call access code: 427649
Slides and a webcast are available via investors.aveva.com and a replay of the call will be made available later in the day.