Aveva's half-year profit and revenue rise

18th Nov 2013 09:25

- Pre-tax profit rises six per cent- Revenue up 11 per cent- Slow growth in Enterprise Solutions arm- Dividend raised 11 per centAveva Group, which supplies engineering data and design IT systems, reported a six per cent rise in pre-tax profit to 27.3m pounds in the first half.Revenue was up 11% to £108.5m in the six months through September, driven by the oil and gas market and growth in the Engineering and Design Systems division. The Engineering & Design Systems (EDS) arm saw revenue increase 12% in the first half, boosted by demand from Engineering Procurement and Construction (EPC) customers. In the Enterprise Solutions (ES) division, the company made good progress with the major Owner Operators and EPCs, but revenue growth of 5% over the prior year was slower than expected. However, the firm said ES pipeline remains substantial, and it remains confident of the long-term potential of the business.Cash generated from operating activities before tax rose 32% to £30.2m from £22.9m a year earlier."Aveva remains well positioned with broad exposure to multiple growth markets and high recurring revenues," said Chief Executive Richard London."The strong momentum in our EDS business along with the improvement in overall profitability achieved in H1, give us confidence that the Group will deliver the Board's expectations for the full year.""The strong momentum in our EDS business along with the improvement in overall profitability achieved in H1, give us confidence that the group will deliver the board's expectations for the full year."The dividend was raised 11% to 5p per share.Shares fell 9.28% to 2,328p at 09:44 on Monday.RD