Recurring sales jump at Aveva

Growing subscription revenues has been a priority for Aveva’s (AVV) management since 2015, when it introduced its target to derive 60 per cent of sales from repeating sources. Fast forward three years, and recurring revenues jumped 42 per cent in the first six months of the year, to account for 62 per cent of the £392m total. Chief executive Craig Hayman describes the target as “a stop along the way” to increasing that proportion, but said the industrial software group would not set new targets until it had completed the full year – Aveva’s business tends to be second-half weighted. The star performer behind the growth was the monitoring and control division, thanks to its new, token-based rentals and subscription-selling model.