19th Sep 2018 09:05
LONDON (Alliance News) - AVEVA Group PLC on Wednesday said it expects at least mid-single digit medium-term revenue growth as it plans a phased transition towards greater proportion of Rental & Subscription revenue.
AVEVA said its full-year outlook remains in line with board expectations.
The stock was trading 6.8% higher on Wednesday morning at 3,006.00 pence each, the top performer in the FTSE 250 index of London mid-caps.
The engineering & industrial software firm said it continued to deliver constant currency revenue growth in the financial year-to-date and aims to deliver medium-term revenue growth on a constant currency basis at least at a mid-single digit rate.
This revenue growth target reflects AVEVA's expectations to grow its underlying software business, driven by a combination of sales execution, revenue synergies and additional value levers, including pricing.
AVEVA also said it aims to grow the proportion of recurring revenue to total revenue to over 60% from 52% in the medium-term. The target is expected to be achieved by increasing the mix of Rental & Subscription unit revenue as a proportion of new software revenue in a financial year.
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