10th Nov 2021 09:29
(Alliance News) - Aveva Group PLC on Wednesday said it saw a good first half performance, delivering a "solid set of results" and laying foundations for future growth.
In the six months to September 30, the industrial software provider recorded a pretax loss of GBP80.3 million, widened from a GBP24.2 million loss a year before.
Aveva said the loss was due to the amortisation of intangible assets relating to its combination with the Schneider Electric industrial software business and its OSIsoft acquisition.
Total operating expenses increased to GBP448.5 million from GBP271.9 million, as research & development costs rose to GBP164.9 million from GBP92.7 million and selling & administrative expenses increased to GBP270.0 million from GBP181.5 million.
Revenue surged 45% to GBP480.9 million from GBP332.6 million.
Aveva declared an interim dividend of 13.0 pence, up 4.8% from 12.4p paid out last year.
The Cambridge-based firm said the integration with the OSIsoft businesses has progressed well. Aveva bought San Leandro, California-based real-time data management software provider OSIsoft LLC for USD5 billion, completing the deal back in March.
Aveva said growth is expected to continue in the second half of the year on an organic constant currency basis, supported by a good contract pipeline and improving market conditions.
"End market conditions started to improve during the period following disruption caused by the Covid crisis. As a result, we are seeing the resumption of structural growth, driven by increased digitalisation and net-zero projects, across a wide range of industry sectors," said Chief Executive Officer Peter Herweck.
"We remain confident in the growth outlook and believe that our first half results form a strong foundation for us to build on and to meet our medium-term targets."
Shares in Aveva were up 1.3% in early trading in London on Wednesday at 3,554.00 pence each.
By Paul McGowan; [email protected]
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