AVEVA Group achieve a strong second half performance


AVEVA Group plc (LON:AVV) has announced its preliminary results for the year ended 31 March 2021.

On 19 March 2021, the Group announced the completion of the acquisition of OSIsoft, LLCenhancing AVEVA’s ability to accelerate the digital transformation of the industrial world.

The statutory results1 reflect 12 months of trading for standalone AVEVA and 13 days of trading for OSIsoft since the acquisition. To provide a better understanding of the combined trading performance and to improve transparency, non-statutory results are also shown for the combined Group on a pro forma 12-month basis2; and summary results are shown for the AVEVA and OSIsoft business on a 12-month standalone basis.

We believe that the pro forma results for the combined Group give the most insight both into the historic performance of the Group as it is structured today and the most appropriate basis from which to consider the outlook.


Statutory results

·     Revenue was £820.4m (FY20: £833.8m) including £803.0m from AVEVA and £17.4m from OSIsoft.

·     Profit from operations was £36.6m (FY20: £95.0m).

·     Proposed final dividend of 23.5 pence, representing a small increase versus the prior year after adjusting for the rights issue bonus factor.

Combined AVEVA Group on a 12-month pro forma basis (unaudited)

·     On an organic constant currency basis3 pro forma revenue for the combined Group grew 2.2%, with both the standalone AVEVA business and OSIsoft delivering double digit revenue growth in the second half of the financial year.

·     Pro forma constant currency Annualised Recurring Revenue (ARR)4 increased 8.6% to £704.8m (FY20: £648.9m).

·     Pro forma revenue reduced by 1.4% to £1,196.1m (FY20: £1,213.2m) and adjusted5 EBIT grew 8.1% to £354.7m (FY20: £328.1m), representing a margin of 29.7% (FY20: 27.0%).

·     The standalone AVEVA business was resilient, achieving revenue growth of 0.2% on an organic constant currency basis, while increasing recurring revenue as a percentage of total revenue to 67.9% (FY20: 62.2%) and adjusted EBIT margin to 27.1% (FY20: 26.0%).

·     The standalone OSIsoft business performed well, strengthening its growth as the year progressed to achieve full year revenue growth of 6.6% on an organic constant currency basis, while increasing recurring revenue as a percentage of total revenue to 64.8% (FY20: 59.2%) and adjusted EBIT margin to 34.8% (FY20: 29.3%).

·     The business environment has improved in most major markets following the disruption caused by Covid-19 in the first half of FY20 and the board is confident in the outlook for AVEVA in FY22.

Summary results

Year ended 31 March20212020Change
Combined AVEVA Group on a 12-month pro forma basis (unaudited)
Annualised recurring revenue£704.8m£648.9m8.6%
Adjusted EBIT£354.7m£328.1m8.1%
Profit before tax£50.6m£19.0m166.3%
Adjusted profit before tax£338.7m£299.0m13.3%
Adjusted diluted earnings per share105.3p94.1p11.9%
AVEVA Group plc statutory results
Profit from operations£36.6m£95.0m(61.5)%
Adjusted EBIT£226.4m£216.8m4.4%
Diluted earnings per share 711.27p34.60p(67.4)%
Adjusted diluted earnings per share81.31p86.75p(6.3)%


Statutory results include the results for the standalone AVEVA Group for the 12 months to 31 March 2021 and results for OSIsoft since the acquisition date, compared to the results of the standalone AVEVA business only for FY20.

2 FY21 combined Group pro forma results include results for both AVEVA and OSIsoft for the 12 months to 31 March 2021, as if the acquisition of OSIsoft and the associated financing had occurred at the start of FY20.

3 Organic constant currency revenue excludes a currency translation reduction of £31.2 million; and adjusts for the disposals of Wonderware Italy, Germany and Scandinavia.

4 The annualised value of recurring revenue streams including Maintenance, Subscription and Cloud contracts.

Adjusted metrics are calculated before amortisation of intangible assets (excluding other software), share-based payments, gain/loss on fair value of forward foreign exchange contracts and exceptional items. Adjusted Earnings Per Share also includes the tax effects of these adjustments.

Recurring revenue is defined as subscription revenue plus maintenance revenue.

Basic and diluted EPS figures for the standalone AVEVA in comparative periods have been restated and adjusted for a bonus factor of 0.8 to reflect the bonus element of the November 2020 rights issue.

Chief Executive Officer, Peter Herweck said:

“The last year has been transformational for AVEVA. The Group reacted quickly to the Covid crisis, so that despite a challenging first half, the second half saw double-digit revenue growth. At the same time, our transition to Subscription continues at pace.

The acquisition of OSIsoft has established AVEVA as a clear global leader in operational industrial software, further enhancing our ability to lead the digital transformation of the industrial world, with a more diversified customer base, supporting their energy transition and sustainability journeys.

Initial customer feedback on the combination of AVEVA and OSIsoft has been extremely positive and I look forward to capturing the significant value opportunity over the coming years. Although early in the financial year, trading has started well for the enlarged AVEVA Group and it is performing in-line with our expectations.”

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