On 1 March 2018, the Group announced the completion of the combination with the Schneider Electric Industrial Software Business (‘the Combination’), creating a global leader in engineering and industrial software. The statutory results1 are prepared on a reverse acquisition basis and reflect 12 months of trading for the Schneider Electric Industrial Software Business and one month of trading for the heritage AVEVA Group. To provide a better understanding of the combined trading performance and to improve transparency, nonstatutory results are also shown for the combined Group on a pro forma 12 month basis2; and summary results are shown for the heritage AVEVA and Schneider Electric Industrial Software Business (‘SES’) on a 12 month standalone basis. We believe that the pro forma results for the combined Group give the most insight both into the historic performance of the Group as it is structured today and also give the most appropriate basis from which to consider the outlook for the combined Group.
Highlights
- Pro forma revenue for the combined Group grew 8.6% to £704.6m (2017 – £648.7m) adjusted EBIT grew 8.9% to £165.6m (2017 – £152.0m) and adjusted profit before tax grew 6.8% to £162.8m (2017 – £152.4m)
- Strong performance from the heritage AVEVA business with revenue up 15.0% to £248.2m (2017 – £215.8m), helped by FX tailwinds (+1.5%) and a large contract (+3%) to give underlying growth of c.10%. Adjusted profit before tax up 23.3% to £67.8m (2017 – £55.0m) representing a margin of 27.3% (2017 – 25.5%)
- Robust performance from the heritage Schneider Electric industrial software business (‘SES’) with revenue up 5.4% to £456.4m (2017 – £432.8m) adjusted EBIT up 0.7% to £98.0m (2017 – £97.3m)
- On a statutory basis, revenue grew 15.3% to £499.1m (2017 – £432.8m) and profit before tax fell 8.8% to £46.9m (2017 – £51.4m)
- Proposed final dividend maintained at 27.0 pence per share following the return of value of £10.15 per share in March 2018
- Today AVEVA announces that it is targeting annualised cost synergies of £25m which we expect to be fully implemented by the end of the 2020 financial year with the Combination also expected to generate material revenue synergies over the medium term.
Chief Executive Officer, Craig Hayman said:
“The last 12 months have been transformational for AVEVA, and the years ahead will be even more exciting as a global leader in industrial software. There is an accelerating, secular trend toward the digitalisation of industry and the combined Group is uniquely placed to capture this opportunity.
Our suite of proven solutions, deep sector expertise and global partner ecosystem, will help to drive innovation across the whole lifecycle of our customers’ assets: from design, through to operations and maintenance, maximising returns on investment to the capital intensive industries we serve.
I am pleased with the results that we have announced today, which are a credit to the hard work of our people in what has been a very busy year. The integration of the business has begun in earnest to drive top-line synergies. I am excited about the opportunities that lie ahead of us and will be focused on driving profitable growth.”
Please visit https://www.aveva.com/en/Investors/Financial_Reports/ and click "2017/2018 Preliminary Results" to view the full results, including graphs and tables.
