AVEVA Group plc (LON:AVV), a global leader in engineering and industrial software, today provided a trading update for the 10 months ended 31 January 2020.
The Group achieved high single-digit organic constant currency revenue growth in the first ten months of the financial year. This was supported by strong orders in Rental & Subscription, for both on premise and Cloud solutions, partly offset by significantly lower Initial & Perpetual licences and Services, as planned. As such, AVEVA’s business model transition continues to improve revenue mix and quality, providing customers with greater flexibility, while increasing long-term operating margins and cash flows. As previously outlined, AVEVA achieved early contract renewals in the first half and the corresponding revenue pull forward affected third quarter revenue growth.
On a regional basis, AVEVA achieved growth across all of its reporting segments, with particularly good growth in Asia Pacific. The ongoing disruption in China, caused by the Coronavirus, due to travel restrictions and office closures, is having some impact on sales in that country. China has historically accounted for around 5% of AVEVA’s overall Group revenue.
At a Group level AVEVA Group had a good start to the fourth quarter and the order pipeline for the remaining weeks of the financial year is solid.