AVEVA Group PLC Interim Management Statement (0520D)
January 26 2015 - 02:00AM
UK Regulatory
TIDMAVV
RNS Number : 0520D
AVEVA Group PLC
26 January 2015
26 January 2015
AVEVA Group plc
Interim Management Statement
AVEVA Group plc ('AVEVA'; stock code: AVV), one of the world's
leading providers of engineering data and design IT systems, today
announces the following Interim Management Statement for the period
from 1 October 2014 to 23 January 2015 ('the period').
Trading Update
During the period, the performance in Engineering & Design
Systems ('EDS') was broadly in line with our expectations as set
out at the time of our interim results (10 November 2014).
Importantly, our recurring revenue was on track with the revised
plan with a number of rental renewals completed at similar levels
to last year. Despite some important new customer wins, the
backdrop for Enterprise Solutions has been significantly more
challenging due to the well-documented budget constraints among
Owner Operator customers in the Oil & Gas industry.
For the Group as a whole the final quarter remains the most
significant with a number of key rental renewals. At this point we
expect these to renew in line with our historical experience.
We are experiencing increased uncertainty and reduced visibility
in the Oil & Gas market, which drives c.45% of our revenues.
This has been exaggerated recently by the sharp decline in oil
price. Outside of Oil & Gas, the trends in our other end
markets have not changed with steady growth in Power and Marine
subdued.
We are on track with the second-half cost efficiency programme
outlined in our interim results.
Innovation
Encouragingly, we have seen continued traction for AVEVA
Everything3D(TM) (E3D) within our customer base as a result of the
efficiencies it offers, with continued growth in revenue during the
period.
Acquisitions
On 5 January 2015, we announced the acquisition of 8over8
Limited, which extends our capabilities further into operations
through enabling customers to manage the impact of changes on their
project costs and scheduling, which we see as a key focus for Owner
Operators in challenging market conditions. Although in the early
stages, the integration is progressing well.
The Group continues to maintain a strong balance sheet and
closed with net cash of GBP120 million at 31 December 2014.
Enquiries:
AVEVA Group plc Tel: +44 1223 556 611
Richard Longdon, Chief Executive
James Kidd, Chief Financial Officer
Derek Brown, Head of Investor
Relations
Hudson Sandler Tel: +44 20 7796 4133
Andrew Hayes/Wendy Baker/Alex
Brennan
This information is provided by RNS
The company news service from the London Stock Exchange
END
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