(Alliance News) - AVEVA Group PLC on Tuesday reported a sharp spike in annual profit driven in large part by a rise in Subscription revenue.
The Cambridge-headquartered engineering & industrial software firm posted a GBP92.0 million pretax profit for its year ended March 31. This is almost twice the prior year's GBP46.7 million profit figure.
This resulted primarily from an 8.8% increase in AVEVA's revenue to GBP833.8 million from GBP766.6 million, thanks largely to a 45% increase in Subsription revenue to GBP316.8 million from GBP218.2 million. Maintenance revenue was up 3.8% at GBP201.7 million.
These increases in Subscription and Maintenance revenue, which make up AVEVA's recurring revenue, offset a 15% drop in Perpetual Licences revenue to GBP179.3 million and 4.5% drop in Services revenue to GBP136.0 million.
AVEVA has declared a final dividend per share of 29.0 pence, maintained from financial 2019. AVEVA said this reflects confidence in its "resilience, strong balance sheet position and ongoing cash generation" as well as "prudence" in the face of a global economic crisis.
So far, none of the company's employees have been furloughed and no headcount reduction has taken place as a consequence of the virus. AVEVA is also not expecting to make use of government-backed financing.
Chief Executive Craig Hayman said: "AVEVA's team has adapted impressively to the current market and operating environment. The safety of our employees is paramount and I was very pleased that we managed to deliver a successful close to our financial year with 95% of employees working remotely. We are focused on being digital in everything that we do, accelerating Cloud and driving the roll out of our subscription offering, AVEVA Flex".
"Looking forward, AVEVA is well placed to navigate through the challenges of the current environment, with the benefit of recurring revenue from multi-year contracts. AVEVA is in a strong position and our strategy and medium-term objectives remain unchanged."
The stock was trading 4.5% higher in London on Tuesday morning at 4,197.73 pence a share.
By Anna Farley; annafarley@alliancenews.com
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