Aveva looks to new software to drive growth as sales improve

SOFTWARE firm Aveva said yesterday it expects healthy growth in the coming years, driven by its recently-launched design software Everything3D (E3D).

“Feedback from existing and prospective customers on this ground-breaking technology has been universally positive,” Aveva said, as it posted a 15 per cent rise in revenue in the six months to October.

The firm, whose software is used to design oil and gas facilities, nuclear power plants, and ships, posted profits up eight per cent year-on-year to £25.8m, on turnover of £97.6m in the period.

“We are convinced of the strong growth opportunity E3D offers,” Aveva said. The company has outperformed the rest of the IT sector this year, even as budgets have been hit in Europe. The company saw revenues rise 21 per cent in Asia, much of which was down to Chinese growth.

“These results highlight the breadth, quality and scale of our global business today, with multiple growth drivers across geographies and industries,” said chief executive Richard Longdon.

“We see Aveva as a core sector holding due to its strong sustainable growth outlook,” said Julian Yates, an analyst at Investec, reiterating a “buy” rating and saying that the results displayed positive momentum despite delays to its projects in Brazil. Aveva shares have risen to an all-time high in recent weeks.

The company also hiked its dividend by 13 per cent to 4.5p per share.