(Alliance News) - Aveva Group PLC on Thursday said its pipeline for the remainder of its financial year is "solid" and it has requested Chair Philip Aiken stay in his role for a further year.
The industrial software firm said it increased annualised recurring revenue by 9.6% year-on-year in the rolling twelve months to December 31, driven by growth in the annualised valued of its subscription contracts.
Annualised recurring revenue in Aveva's financial third quarter, which ended December 31, was described as "broad based", with increases in key industries such as food, energy and mining.
"AVEVA intends to accelerate ARR growth during the next financial year, driven by a focus on growth in SaaS, new business wins, the launch of integrated AVEVA/OSIsoft products and pricing uplifts that reflect the global inflationary environment," the company said.
However, due to strong comparatives in the prior year, Aveva said third-quarter revenue declined by a "low single-digit rate" year-on-year on a constant currency basis.
But the company said its sales pipeline for the remainder of the year is "solid", supporting expectations of "good revenue growth" in the final quarter. Full-year revenue should be in line with expectations, the firm said.
Aveva is also on track to achieve expected cost synergies from its OSIsoft acquisition and is making good progress towards targeted revenue synergies.
Turning to management, Aveva said it has requested Aiken remain chair for a further year beyond 2022's annual general meeting.
"Philip continues to provide exceptional leadership, which is particularly valuable as we complete the successful integration of OSIsoft and embed the foundations to support the next phase of subscription-led growth," said Aveva.
From March 1, Deputy Chief Executive & Chief Financial Officer James Kidd will become chief strategy & transformation officer. This role will focus on driving both organic and inorganic growth initiatives, and he will remain on the board as one of the two executive directors.
The role of CFO will be assumed by Brian DiBenedetto, also starting on March 1.
Shares in Aveva were up 0.7% at 2,720.00 pence in London early Thursday.
By Lucy Heming; lucyheming@alliancenews.com
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