CIMdata PLM Industry Summary Online Archive
December 2005
Financial News
Increased Demand Sustains Best-Ever Performance From AVEVA; Interim Results Show Record Growth in Business, Profits and Revenue
AVEVA has announced record growth in revenue, profits, and cash for the six months ended September 30, 2005.
Revenue increased 21% over the same period last year, from £24.1 to £29.0 million. Recurring revenues increased by 26% to £19.1 million (2004: £15.1 million). Profit from operations before amortization, restructuring costs and past service credit on the UK pension scheme increased to £5.5 million (2004: £2.7 million), generating adjusted earnings per share of 17.26p-an increase of 186% on 2004. AVEVA credits its success to outstanding performance across all regions and markets in which it operates. In addition, AVEVA is beginning to see acceleration in orders from some of the World's emerging economies, particularly Russia and South America.
In the last year, AVEVA has continued to see a steady increase in the number of long-term oil and gas projects around the world with signs that this success will continue in the future. Forty-four £1 billion offshore developments, thirteen £1.5 billion refineries, twenty-seven £1 billion LNG plants and eleven £3.5 billion petrochemical plants are currently scheduled to be built over the next 10 years.
Among the successes of the previous year have been global projects with customers like BP in Angola and Shell in Nanhai, China. Additionally, Petrobras, the national oil company of Brazil, migrated its legacy data from four of its refineries to AVEVA's VANTAGE PDMS 3D solution. Petrobras is using AVEVA software in eight of its refineries and is expected to integrate the product across all 14 in time.
Richard Longdon, CEO of AVEVA, said "We have outperformed our own forecasts across all regions and markets that we operate in and have continued to strengthen our position in our three main markets of oil and gas, power and marine. We have seen a good influx of new business, much of which has been at the expense of our competitors and, with a steady renewal of rental contracts we are well placed to build on the momentum that has been established in the business over the last year."
The successful penetration of Asia Pacific markets continues to be a key factor in the Group's performance, as is the success of AVEVA's business in Russia, which was marked by the opening of an office in Moscow. The AVEVA suite of products has already become the system of choice in China, where rapid construction of both nuclear and fossil-fuelled power stations is taking place as the country seeks to address its massive need for extra power capacity.
This phenomenal growth has been experienced whilst AVEVA's investment in research and development has grown by more than 23% to meet the evolving needs of its ever-growing customer base and the expanding global sales infrastructure.
AVEVA Group plc is a fast growing lifecycle engineering IT solutions and services provider to the oil and gas, paper and pulp, power, chemical, pharmaceutical and shipbuilding industries. The Group reported, for the year ended March 2005, a growth in turnover of 51% over 2004. The Group has grown consistently since 1967 on the strength of pioneering engineering technology that protects the information assets of its customers from the volatile nature of the IT industry.
The Group's history of innovation spans five decades and has produced most of today's major engineering IT technologies. Serving over 1500 clients, AVEVA has a dominant position in many market sectors both on and offshore. In May 2004, the Group acquired Tribon Solutions AB, the market-leading shipbuilding solution company and now serves 85% of the world's top 20 shipbuilders.
The Group's clients include plant owner operators, shipbuilders and engineering contractors such as 3M, ALSTOM Power, AMEC, BASF, China Huanqiu Contracting & Engineering Corporation, Daewoo Heavy Industries, Daewoo Shipbuilding & Marine Engineering (DSME), Dalian New Shipbuilding, Du Pont, Electricité de France, Framatome ANP, Halliburton, Hanjin Heavy Industries, Hitachi, Hudong Zhonghua Shipyard, Hyundai Heavy Industries, Kawasaki Heavy Industries, Kawasaki Shipbuilding Corporation, Kvaerner, Merck, Mitsubishi Heavy Industries, Mitsui Engineering & Shipbuilding, North-West Electric Power Design Institute, Petronas Carigali, Samsung Engineering, Shanghai Waigaoqiao Shipbuilding, Shell, Sinopec Engineering Incorporation, STX Shipbuilding and Uhde.
Headquartered in Cambridge, England, AVEVA Group plc and its operating subsidiaries currently employ more than 500 staff worldwide with offices in England, Australia, China, France, Germany, Hong Kong, India, Italy, Japan, Malaysia, Norway, Russia, Saudi Arabia, Singapore, Sweden, South Korea and the USA.
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