In its first full year as a combined business with Schneider Electric SA, Aveva (AVV) is benefiting from the ability to cross-sell the combined product portfolio to a larger customer base. Since launching the expanded product offering in October, several key customers have increased the range of software they buy, helping boost adjusted trading profits by almost 20 per cent to £185m.
As the digitalisation of the industrial world continues, the group is capitalising on a growing demand for industrial software. Representing 14 per cent of group revenue, asset performance management (APM) is the group’s fastest-growing business unit with 20 per cent sales growth last year. Predictive asset analytics and reliability centred maintenance solutions are catering to the evolving needs of the power generation sector – where there is increased focus on maximising the life of capital assets and ensuring safe and reliable operation. With the shift to renewable energy, distributed assets will create demand for scalable monitoring and coordination systems.
Numis anticipates adjusted pre-tax profit of £212.2m and EPS of 105p in 2020, rising to £241.6m and 119p in 2021.
| AVEVA (AVV) | ||||
| ORD PRICE: | 3,440p | MARKET VALUE: | £ 5.55bn | |
| TOUCH: | 3,438-3,444p | 12-MONTH HIGH: | 3,530p | LOW: 2,264p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 164 | |
| NET ASSET VALUE: | 1,193p* | NET CASH: | £128m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 209 | 54.9 | 65.0 | 30.5 |
| 2016 | 201 | 29.4 | 32.0 | 36.0 |
| 2017 | 433 | 51.4 | 40.0 | 40.0 |
| 2018** | 486 | 34.5 | 39.9 | 27.0† |
| 2019 | 767 | 46.7 | 21.0 | 43.0 |
| % change | +58 | +35 | -47 | +59 |
| Ex-div: | 04 Jul | |||
| Payment: | 02 Aug | |||
| *Includes intangible assets of £1.88bn or 1,169p a share, **Restated, †No interim dividend paid | ||||
