Spectris shares bounce following special dividend payment
Shares in Spectris plc (LON:SXS) have jumped following a strong set of 2019 full year results.
Following these strong results, the firm has decided to pay a special dividend which has been driven by its strong performance and its restructuring program.
The Chief Executive said: “We have announced a special dividend of £175 million, in line with our capital allocation policy. 2019 has been a year of delivery upon which to build in 2020. We are intent on further improving our operating margin, to at least previous highs, and enhancing capital returns, as we continue to work on asset optimisation and managing the portfolio.”
The firm reported pretax profit of £259.3 million in 2019 – this represented a 19% growth from the £218 million figure just one year ago.
Notably, revenues also jumped by 1.7% to £1.63 billion from £1.6 billion.
On an organic, constant currency like-for-like basis, revenue increased by 0.4%, Spectris said. The sales contribution from acquisitions were broadly offset by disposals, and there was a 1.5% positive impact from foreign currency exchange movements.
The firm added that its profit improvement program lead to annualized benefits of £25.5 million, as restructuring costs incurred totaled £52.2 million.
The firm declared an annual dividend payment of 65.1 pence, which shows a 6.7% rise from 61p paid for 2018.
Spectris notably proposed a £175 million special dividend and share consolidation. The special dividend of 150p has been noted, and the firm said that in order to maintain the comparability of the company’s share price a supporting share consolidation will take place – subject to shareholder approval.
Andrew Heath, Chief Executive, said:
“2019 saw demonstrable progress in executing our Strategy for Profitable Growth. The successful delivery of our profit improvement programme, combined with an increased emphasis on deploying the Spectris Business System, enabled us to deliver increased profit and operating margin expansion, against a weakening macroeconomic backdrop …
Absent a material impact from coronavirus, for 2020, we anticipate that markets will remain challenging in the first half with a recovery only currently forecasted to emerge later in the year. We expect limited top-line growth and will, therefore, continue to concentrate on self-help initiatives to drive further cost-efficiency and ensure a more resilient and profitable business.
The combination of focusing on our customers, driving operating leverage and the repositioning and simplification of our portfolio, alongside a refreshed capital allocation framework, form the basis for delivering a significant and sustainable increase in shareholder value.”
Shares in Spectris trade at 2,874p (+5.04%). 20/2/20 13:36BST.
TBC Bank shares spike over 6% as annual profits surge 15%
TBC Bank Group PLC (LON:TBCG) have seen their shares spike following a strong set of annual results, published on Thursday.
The Georgian bank said that it had seen a double digit rise in annual profit which was the headline statistic in the annual update.
The firm praised the strong performance in its corporate lending department, as this sector drove the firm’s strong loan book performance.
Across 2019, TBC Bank recorded GEL585.5 million in pretax profit, which is a 15% climb compared to GEL510.2 million in 2018.
The firm also said that its’ net interest income rose 3% in 2019 from GEL778 a year ago to GEL801.5 million.
The bank also told the market that operating expenses rose 9.7% in 2019 to GEL450.7 million from GEL411.0 million in 2018, and, as a result, its cost-to-income ratio worsened to 39.9% from 37.8% – which was one of the dampened takes from the update.
TBC finished 2019 with a gross loan book of GEL12.66 billion, again showing a 22% rise from the GEL10.37 billion figure seen at the end of 2018. Notably, net interest margin fell from 6.9% to 5.6%.
Looking at their customer deposits, these amounted to GEL10.05 billion, up 7.5% from the year before at GEL9.35 billion.
A notable rise came from TBC’s retail loan book, where this was up 7.5% year on year. Corporate Loans grew 47% while its Micro, Small, & Medium Enterprises loan book rose 18%.
Going forward, the firm said that it had laid solid foundations for further customer initiatives and that there are ambition plans in place.
The CEO of TBC Bank commented:
“In 2019, we recorded strong financial results and made significant progress against our strategic priorities, including the development of customer focused ecosystems and international expansion in Uzbekistan. This lays a solid foundation for further development of these initiatives and I am very excited about our ambitious plans for 2020. Our leading digital capabilities, outstanding customer experience and advanced data analytical capabilities, coupled with our strong team spirit, make me confident that we are well positioned to achieve sustainable growth and to deliver superior results to our shareholders. Therefore, I would like to reiterate our medium-term targets: ROE of above 20%, cost to income ratio below 35%, dividend pay-out ratio of 25-35% and loan book growth of around 10-15%.”
TBC’s strong quarterly update
The results today show a clear plan to build, and in November the firm gave another steady update. The FTSE 250 listed bank said its net profit for the three months to September 30 increased 18% to GEL126.8 million from GEL107.4 million in the same period a year ago. Additionally, pretax profit rose 13% to GEL142.3 million. Third quarter net interest income fell 6.7% to GEL186.2 million, while fee & commission income rallied 20% to GEL47.1 million. Other operating non-interest income increased 19% to GEL46.4 million. Net interest margin for the third quarter fell to 5.0% from 6.9%. Year-to-date margin fell 1.5 percentage point to 5.5%. TBC has backed their medium-term target of return on equity of above 20%, cost to income ratio below 35%, dividend payout ratio of 25% to 35% and loan book growth of 10% to 15%. In the third quarter, the company’s return on equity fell to 20.4% from 21.2% and cost to income ratio increased to 39.9% from 37.4%. TBC Bank have clearly made an emphasis to build and grow as a firm – something which has to be admired. Shares in TBC Bank trade at 1,392p (+6.26%). 20/2/20 13:07BST.Morgan Sindall report strong 2019 as revenues climb 3%
Morgan Sindall Group PLC (LON:MGNS) have given shareholders an impressive annual update on Thursday afternoon.
The construction firm told the market that annual revenues and profits had risen across 2019 and that ‘strong results’ had reflected the quality of its work.
Shares in Morgan Sindall Group PLC trade at 1,936p (-0.10%). 20/2/20 12:36BST.
Morgan Sindall said that revenue rose 3% to £3.1 billion in 2019, compared to £2.9 billion in 2018, while pretax profit rose to £88.6 million compared to £80.6 million.
On an even better note, the firm said that secured workload in 2019 rose 14% from £6.7 billion to £7.6 billion.
Morgan Sindall noted that they had changed their strategy to improve business operations.
The change and focus to contract selectivity, operational delivery and on generally improving the overall quality of business won and delivered – and this has paid off following the strong results posted today.
The Construction and Infrastructure divisional revenue rose to £1.5 billion from £1.3 billion in 2018, while Fit Out delivered revenue of £839.0 million compared to £831.0 million a year ago.
On the back of these strong results, Morgan Sindall have increased their total dividend by 11% to 59p from 53p paid in 2018.
Commenting on today’s results, Chief Executive, John Morgan said:
“These strong results reflect the high quality of our operations and are testament to the work and commitment of all our people. Our strategic focus on construction and regeneration underpins the positive momentum across the Group and provides the platform for future progress.
Our balance sheet remains a significant differentiator allowing us to make the right long-term decisions for the business. With our average daily net cash position further increasing in the year, we have the flexibility to continue being highly selective with our bidding while also investing in our regeneration activities.
Both the volume and the quality of our secured workload have increased in the year leaving us well-positioned for the future. We are confident of another good year of progress in 2020 and the Group is in a strong position to deliver on its expectations.”
Morgan Sindall grow from strength to strength
Following the results that have been posted today, it is clear to see that the firm has been growing from strength to strength. While revenue was flat between H1 2018 and 2019, adjusted operating profit grew 18% to £37.5 million and adjusted profit before tax jumped 20% to £36.3 million. Notable divisional performances came from Partnership Housing and Urban Regeneration, up 39% and 36% respectively. Certainly this is an impressive update from Morgan Sindall – the firm should be confident to keep growing and exceed expectations.Laura Ashley unveil their interim results after hectic few days
Laura Ashley (LON:ALY) have posted their interim results on Thursday, following a busy week for the firm.
The British firm said that its performance slipped in the first half of its financial year – but has remained confident in its ability to meet expectations.
The firm said: “There have been market challenges for our business which have impacted these results during the current financial year. The decline in total revenue was due to the market headwinds and weaker consumer spending during the period, which led to a decline in sales of bigger ticket items. Whilst these results are disappointing, we believe that with the right focus and support, Laura Ashley has a strong future and can be successful again.”
The textile and clothing company reported that they had seen a pretax loss of £4 million in the six month period to December 31 2019.
The loss recorded increased from £1.5 million reported a year ago. Additionally, revenue slipped 11% to £109.6 million from £122.9 million.
On a like for like basis, retail sales also dropped by 10% – which reflects a tough British retail industry combined with a cut throat high street which has seen the collapse of a few firms over the last few months.
The firm said that margins during the first half were hurt by a weak pound against the dollar as well as an increase in UK domestic costs.
Andrew Khoo, Chairman commented:
“Over the past year there have been well documented market challenges facing the retail sector. Similarly at Laura Ashley, we have seen a combination of factors impact our results, ranging from higher costs largely driven by the Brexit uncertainty, minimum wages and business rates increases.
In the Autumn of 2019, we carried out a Strategic Review of the business to set the future direction of the company and return Laura Ashley to the great British brand that is known and cherished around the world. This review identified six areas of focus: improving our brand and customer strategy, accelerating digital, increasing store productivity, improving products and trading, growth opportunities, and focusing on our organization and culture.
We are focused on developing Laura Ashley as a true lifestyle brand that embraces and reconnects with our traditional values and our strong British heritage.”
Laura Ashley announce directorate change
In another update today, the firm also announced that Katharine Poulter, current Chief Operating Officer of the Company, will be appointed as Executive Director and Chief Executive Officer with immediate effect. Poulter will succeed Kwan Cheong Ng, who will retire as Chief Executive Officer of the Company. Mr. Ng will remain as Executive Director until 30 April 2020, after which time he will become a Non-Executive Director of the Board. The firm added: “The Board would like to take this opportunity to thank Mr. Ng for his contribution as Executive Director and Chief Executive Officer during his tenure with the Company and to wish him the very best in his retirement.”Laura Ashley’s busy week
At the start of the week, Laura Ashley saw their shares crash following intense media speculation. The announcement was made on Monday in response to “speculation regarding its financial position.” Laura Ashley said that in the 26 weeks up to 31st December 2018, total group sales were £109.6 million, which saw a 10.8% drop from £122.9 million in 2018. Notably, the firm said that the decline in total revenue was due to market headwinds and decreased consumer spending. Yesterday, the firm told the market that it had secured approval to utilize funds from its working capital facility with Wells Fago. The funds that had been approved met its immediate funding requirements, following the statement issued on Monday. Laura Ashley further reenforced their position that this did not constitute a cash injection by MUI Asia into the company. The results today have followed a week of intense speculation over the survival prospects of the firm. Shares in Laura Ashley trade at 2p (+9.47%). 20/2/20 12:26BST.Oil prices receive boost as tensions in Libya heat up
Oil prices have jumped across Thursday trading, which has extended gains from the previous session.
The price of oil derivatives has been volatile, following both demand and supply issues which have weighed down on global commodities.
The coronavirus has been the main demand side factor which has pulled oil prices down – the outbreak reported a few weeks back has hindered trading in China and has also been spreading across the globe.
Business in China has slumped, which has caused demand for commodities to slow down dampening prices. Additionally, Japan recorded an economic contraction on Tuesday – Japan is the fourth biggest consumer of oil in the globe, and this also led to oil prices flattening.
Thursday has given some rejoice for oil prices however, oil derivatives have seen a boost. This however may not have spawned from demand side, but rather supply issues.
Ongoing political tensions in Libya have led to blockades of their industrial ports and oilfields, as no signs of a resolution have yet been shown.
US Sanctions remain on Rosneft (MCX:ROSN) which could cause further supply shortages in the market.
Libya’s leader Fayez al-Serraj has not reached a middle ground in negotiations following internal action from the Libyan National Army blocking ports. Analysts have said that they estimate that these tensions could cause oil exports to decrease by one million barrels per day.
US data yesterday showed that US Crude Stocks rose by 4.16 million barrels in the week to Feb. 14, compared with analyst expectations for a build of 2.5 million barrels – which is a positive take for commodity traders.
The price of Brent Crude is currently $58.78, rising by 0.1%. Whilst WTI Crude trades at $53.61 (+0.43%).
Oil prices are still seeing their fluctuations, the constant supply cuts made by OPEC+ in an attempt to control prices are working to an extent – however the issues in the Middle East continue to weight down on the supply side.
Rathbone Brothers see rise in funds under management across 2019
Rathbone Brothers plc (LON:RAT) have reported a rise in funds under management in their annual results today.
The firm praised the strong growth of both their businesses, which has led to a successful 2019.
Shares in Rathbone Brother trade at 1,990p (+1.63%). 20/2/20 11:37BST.
The wealth management firm said that total funds under management & administration was £50.4 billion, which shows a 14% appreciation from the £44.1 billion seen at the end of 2018.
Rathbone noted that in 2019, the FTSE 100 Index rose 12.1% and the MSCI PIMFA Private Investor Balanced Index increased 13.1%.
On the back of these strong results, the firm increased its final dividend by 7.1% to 45 pence, which means its total dividend for 2019 amounts to 70p – notably this shows a 6.1% climb from the 66 pence dividend awarded in 2018.
Rathbone’s total funds in its Investment Management unit grew 12% over 2019 to £43.0 billion, whilst its Unit Trusts unit recorded 32% growth in funds to £7.4 billion.
Their Investment Management unit also saw net outflows of £400 million, but Rathbone said that this was offset by market performance which added £4.9 billion.
Within Unit Trusts, the rise in funds was driven by its Global Opportunities Fund growing 38% over 2019 to £1.86 billion.
Additionally, the The Unit Trusts business recorded £900 million in net inflows, which Rathbone praised and said was an outstanding performance in a tough operating market.
Across 2019, Rathbone noted that their pretax profit fell 35% to £39.7 million from £61.3 million. Operating income, however, rose 12% to £348.1 million from £312.0 million.
Mark Nicholls, Chairman commented:
“2019 may well be remembered for political reasons more than any other, but investment markets finished the end of the year strongly. Our own funds under management and administration increased 14.3% to £50.4 billion, up from £44.1 billion on 31 December 2018, as we continued to focus on providing a quality service to our clients and worked hard to bring Speirs & Jeffrey fully into Rathbones.
Following the appointment of Paul Stockton as chief executive in May, we took the opportunity to refocus our strategic direction. Our updated strategy both recognises a need to invest in our business in the shorter term and also builds upon our strengths as we look to grow and develop over the coming years.
Reflecting our confidence in the future, strong capital position and in line with our dividend policy, the board is recommending a final dividend of 45p per share. This brings the total dividend for the year to 70p per share, an increase of 6.1% over last year. The record date for the dividend is 24 April 2020, with the payment date on 12 May 2020.”
Rathbone beat January blues
In January, Rathbone reported a rise in annual funds under management, however inflows declined. In 2019, Rathbone said that they had funds under management and administration of £50.4 million, which showed a 14% growth compared to a year ago. The Investment Management unit increased FUMA by 12% to £43.0 billion, with the Unit Trusts business’s FUMA rising 32% to £7.4 billion. The firm saw net inflows during 2019 total at £600 million, which was miles lower than the £8.5 billion recorded in 2018. However, it is important to remember that the £8.5 billion figure in 2018 of FUMA accounted for the acquisition of of Speirs and Jeffrey Ltd, meaning it was £1.7 billion excluding this benefit. Outflows rose by 44% to £3.9 billion, and in the last quarter Rathbone quit some lower margin business after the deal with Speirs & Jeffrey. Notably, Organic inflows in Investment Management dell 13% form a year ago to £3.3 billion, however Rathbone said that 2019 inflows came despite weak investor confidence. Net inflows in Unit Trusts for 2019 were £943 million, nearly double the year before, a performance Rathbone said was “particularly strong”. The update from Rathbone is certainly a pleasing one – and the firm has operated well in a tough market. Shares in Rathbone Brothers trade at 1,990p (+1.63%). 20/2/20 11:49BST.US Election: Democrat candidates go head to head
The US Election is transitioning very quickly – new stories, developments and pledges are changing everyday as candidates look to rally up support.
The Democratic Party – who are challengers for the 2020 election to Donald Trump’s establishment are in a tough spot at the moment.
Partisan divisions continue to surface around the blue party, with factions such as the Blue Dog’s wanting to advocate a right wing natured hybrid version of liberalism.
Last night, Democratic Party candidates took their next step in the US Election cycle as internal candidates battled to drum up support from the American people.
Billionaire Michael Bloomberg took to the stage for the first time – as an American business man, in similar fashion to Donald Trump looking to win the White House.
The caucuses in Nevada, and Super Tuesday is fast approaching. This is when another 14 states will be able to vote for the candidate which they align with most – however the fragmented nature of last nights debate will pose a quick question for voters.
Attacks were recorded on underdog Bloomberg for his previous comments on race, sex and ethnicity.
Bloomberg, the multi billionaire was quick to defend his stance and reason for running against Donald Trump this election. He said that he had the best chance of winning the White House on November 3rd, as his public speaking, soundbites and confidence were all put to the test.
The Democratic party are in a unique position – with such a breadth of different candidates, it seems that voters will have an interesting selection to pick from.
However – this could be a problem. If no one candidate does win total support across all Democratic voters, then there could be speculation that Donald Trump will get another four years in office.
The election is in quite an unpredictable position, before candidates would be considered favorites based on the amount of money that they had raised, through PAC’s and Super PAC’s.
However, there seems to be a shift in the type of candidates that are winning the support of voters, which makes the US Election an interesting one.
Moneysupermarket bounce back with impressive update, shares spike 12%
Moneysupermarket.com Group PLC (LON:MONY) have seen their shares spike on Thursday on the back of an impressive update.
Shares in the firm trade at 348p (+12.33%). 20/2/20 11:02BST.
The FTSE 250 listed firm reported profit growth and as a result lifted its dividend.
Moneysupermarket said that it had seen a ‘standout’ year for its MoneySavingExpert energy UK price site.
Across 2019, the firm saw its revenue surge 9.2% from £355.6 millions to £388.4 million. Notably, pretax profit also jumped 8.5% to £116 million from £106.9 million.
Estimated customer savings, fell 4.8% to £2.0 billion from £2.1 billion in 2018.
Notably, active users, which rose 1.6% to 13.1 million from 12.9 million. This measure is one of the key performance indicators for the firm.
Mark Lewis, Chief Executive Officer of Moneysupermarket Group, said:
“It’s good to report the Group returned to profit growth and once again helped UK households save over £2bn on their bills.
“Innovation will continue in 2020 as MoneySavingExpert, the most trusted brand for finding energy deals, launches a new energy autoswitching service.”
Going forward, the firm has reinstated its confidence to deliver results in 2020.
The company said – “Overall trading dynamics have improved in the first six weeks of 2020. Home Services has traded in line with the prior year, despite the strong comparative. The Board is confident of delivering market expectations for the year.”
The firm also announced a change to their board of directors on Thursday.
Supriya Uchil will be appointed as Non-Executive Director with effect from 1 March 2020 and James Bilefield as Non-Executive Director with effect from 1 May 2020.
They will also be appointed as members of the Audit, Nomination, Risk and Remuneration Committees of the Board with effect from the same dates.
Announcing the appointments, Robin Freestone, Chair of the Company, said:
“I am very pleased that Supriya and James have agreed to join our Board as Non-Executive Directors. With Supriya and James’ product and digital experience, they will be valuable additions and complement the diverse backgrounds and experience of our Board.”
Moneysupermarket bounce back
In October, the firm saw its shares in red following a slow sales report. In the second quarter, the price comparison firm showed steady progress with 4% higher revenues of £100.9 million in the three months leading into September, but this was modest compared to 15% and 19% growth in Q1 and Q2 respectively. The decrease was seen in its Money division, representing a fifth of the firms total revenues. Additionally, Money Division revenues fell by 5% to £20.6 million. The energy saving division gave solid returns, due to the variety of retailers and large customer savings. Moneysupermarket have showed that they can bounce back from a slow period of trading, which will certainly impress shareholders.Anglo American see earnings rise across 2019 as shares jump almost 2%
Anglo American PLC (LON:AAL) have seen their earnings improve in their preliminary 2019 annual results.
The mining titan told the market that earnings had risen across 2019, however warned shareholders that trading could be hampered by tense US-China relations and the current coronavirus outbreak.
Anglo American said that revenues had jumped 10% to $29.87 billion, as underlying earnings before interest, tax, depreciation and amortisation up 9.2% to $10.01 billion.
Profit attributable to equity shareholders was lower at $3.55 billion, but Anglo American decided to increase their dividend by 9% to 1.09 cents from 1.00 cents per share.
In the production realm, this is where Anglo American saw a mixed bag of results.
The firm noted that De Beers’ rough diamond production fell by 13% to 30.8 million carats, with copper production falling by 4.5% to 638,000 tonnes.
For 2020, production guidance is 32 million to 34 million carats, which means that the firm is expected a 10% jump in 2020. The miner cited an “expected increase in ore from the final open-pit cut at Venetia”.
Metallurgical coal production rose by 5.0% to 22.9 million tonnes but at thermal coal, total export production decreased by 7.7% to 26.4 million tonnes. Additionally, platinum group metals output fell 1.5% lower to 2.1 million ounces.
At their Minas-Rio operations in Brazil, production recommenced in December 2018, meaning output rose sharply to 23.1 million tonnes from 3.4 million tonnes.
However, in Kumba production slowed down. At this site, iron ore production decreased by 1.6% to 42.4 million tonnes – which may come as a disappointment for shareholders.
Mark Cutifani, Chief Executive of Anglo American, said:
“We continue building on the fundamental structural and operational improvements we have embedded across our business. The result is founded on high quality, low cost, world class assets. We have also benefited from product and market diversification, with strong precious metals and iron ore prices offsetting weakness in diamonds and coal, generating a 9% increase in underlying EBITDA to $10.0 billion, a 19% ROCE and a Total Shareholder Return of 31% for the year.
“We continue to invest in high quality, value-adding growth projects across the business, including in copper, diamonds and metallurgical coal, which will drive our volume, margin and cash flow growth over the medium and longer term. Combined with our share buyback of $0.8 billion during the second half of the year, net debt at year end was less than 0.5x EBITDA and we continue to maintain a strong balance sheet through the cycle.”
The firm has been quick to reinstate its position to be a market leader, and the firm has looked to grow.
Cutifani concluded:
“Consistent delivery of underlying improvements continues to enhance Anglo American’s competitive position. We have transformed our operations and delivered significant financial uplift, while building our broad sustainability performance. Guided by our Purpose, we are continuing to reposition our business responsibly for a cleaner, greener, more sustainable world.”
New Anglo American Platinum Ltd CEO appointed
On another note, Anglo American also announced that Chief Executive Officer of Anglo American Platinum Ltd would be stepping down. The firm said that Natascha Viljoen will be taking over with effect April 16 from Chris Griffith. Norman Mbazima, Chairman of Anglo American Platinum, said: “I am delighted to welcome Natascha Viljoen as CEO of Anglo American Platinum. Natascha is a seasoned senior executive, bringing 28 years of operational experience from across our mining industry, spanning many different countries, metals and minerals including, of course, the PGMs. She knows us and our business well, having worked with our executive team over the last five years in leading the changes required to transform the performance of – and commercial value from – our processing operations.”Anglo American’s deal with Sirius Minerals
In January, Anglo American expressed their intentions to agree an acquisition deal for Sirius Minerals (LON:SXX). Anglo said that they will offer 5.5p per shares for Sirius, which shows a 34% rise to the closing price of Sirius on Friday which was 4.1p. Sirius Minerals itself said its directors consider the acquisition to be “fair and reasonable”, and have recommended that shareholders vote in approval of the offer. The offer is conditional on whether 75% of Sirius shareholders decide to vote in favor for the merger deal, which will be done at an upcoming court meeting. The share price offer values Sirius at £404.9 million, and is a deal which Anglo American will be thoroughly excited with. The upcoming court hearing is over the next few weeks – and shareholders will be keen to get their voices and opinions heard. The results for Anglo American are pleasing, and the firm is undergoing a busy few weeks. The production has slipped, however the acquisition deal with Sirius Minerals should be something that shareholders and the firm remain confident for. Anglo American will hope that 2020 is a good stable year for the firm, and once tensions in China clear up – then trading should recommence in full flow. Shares in Anglo American trade at 2,124p (+1.72%). 20/2/20 10:53BST.AVEVA’s results hit by coronavirus, as trading in China stumbles
AVEVA Group PLC (LON:AVV) have seen their shares dip as the firm warned shareholders about trading performance following the outbreak of the coronavirus.
Many global business have seen their performances hindered by the breakout of the coronavirus – as global governments and health organizations look to battle and contain the lethal disease.
AVEVA are the latest in line to be affected by the coronavirus – and the firm has issued a warning today.
The engineering firm noted that revenue has grown within its financial year, however said that the coronavirus is hurting operations in China.
AVEVA noted that the firm has achieved high singly digit organic constancy currency revenue growth in the ten month period to January 31.
The firm told the market that it had seen a high number of orders in its Rental and Subscription division, however this saw offset by “significantly” lower Initial & Perpetual licenses.
AVEVA added that ongoing health issues in China are hurting sales and trading in that country due to office closures, legislation and travel restriction. China has accounted for 5% of AVEVA’s revenues – which shows a big bruising for the firm.
The firm concluded by adding: “At a Group level AVEVA had a good start to the fourth quarter and the order pipeline for the remaining weeks of the financial year is solid.”