- AVEVA Group plc (LON:AVV), the Cambridge-based engineering software company today released a brief trading update that revealed underlying sales growth of 9% at the half-year stage, before a negative impact from currency swings.
- Newly acquired OSIsoft made a notable contribution to growth, which was in the mid-to high-teens rate for Subscription and Licence income and low single digits for Maintenance and Services revenues.
- Aveva said that margins responded strongly to the growth in revenues and that this has fed through to adjusted operating profits.
Aveva's Strong Margin Expansion
Commenting on the trading statement, Steve Clayton, fund manager at HL Select said:
“The market was expecting Aveva to grow at around this pace, but perhaps a little more geared to the existing business, rather than OSIsoft. What the statement does not say is that the figures reported suggest that Q2 was a little slower than the 11% reported in Q1. The news of strong margin expansion is a positive, but the market’s rather disinterested reaction to these numbers, marking the stock a few pennies lower, shows that the lack of any acceleration in the business was investors’ main focus.”
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