AVEVA powers ahead on good 1H07 trading statement; forecast of more to come
AVEVA Group plc, a leading worldwide supplier of engineering data and design IT systems, said its interim results for the six months ending 30 September will again show strong growth.
The Cambridge-headquartered group’s share price gained almost 10% on the news. The company is now valued at around £710m.
Chief Executive Richard Longdon (pictured) said: “We continue to maintain excellent momentum across all our markets. We are seeing sustained demand from customers and our innovative technologies put us in a very strong position to benefit from continuing buoyant markets."
AVEVA's principal markets of oil and gas, power and marine remain buoyant. Geographically it said it has seen a particularly strong performance from the Asia Pacific region where customers continue to commit high levels of investment to support their continued growth. Much of this demand tends to generate upfront licence fees.
Growth across Central Europe has also been very strong. Existing power and plant customers are increasing their current usage of our products and AVEVA is winning more clients. US and WEMEA trading has progressed in line with expectations.
Mr Longdon said that expanding new and existing technologies remains central to success and consequently, investment for the period is at a high level. “This allows us to strengthen our existing products as well as opening up new opportunities with new products.”
The Board expects the strength of trading in the first six months to continue during the second half of the financial year, but given the high level of initial fees generated in the first half, anticipates a relatively even split of profits between the two halves. The Board therefore believes results for the full year will be ahead of its previous expectations.
The Company will release its interim results on 12 November.
4th October 2007
