AVEVA Group plc on Tuesday reported significantly higher profits for fiscal 2009 (ended March 31) as growth across most regions and product areas helped the company to a 29% increase in revenue over last year. Both revenue and profit were slightly better than expected, leading to a 10% increase in the share price on both Tuesday and Wednesday on the London Stock Exchange.

AVEVA reported revenue of GBP 164.04 million, up 29% over fiscal 2008. Recurring revenue grew 42% to GBP 94.2 million and now represents 57% of the total revenue. As the company had warned in April, new license revenue growth slowed significantly, up 9% to GBP 57.7 million. Services revenue in fiscal 2009 was GBP 12.1 million, up 41% over fiscal 2008.

Revenue growth and cost controls delivered adjusted profit growth of 31% to GBP 62.6 million, or adjusted earnings per share of 67.33 pence, up 22%. Basic earnings per share were 62.27 pence, up 23%.

Revenue from Asia was up 32% to GBP 67.1 million, driven by strong initial license fees in the Marine business in China and Korea. CES revenue was up 40% to GBP 45.8 million on continued growth in "oil-related projects." Revenue from the Americas was up 37% to GBP 24.4 million even as AVEVA saw "difficult trading conditions in North America and Canada
but strong growth in Latin America." Finally, revenue from Western Europe, Middle East and Africa revenue was essentially flat at GBP 26.8 million.

In its prepared material, AVEVA said that it now sells approximately 30% of its products to each of the Oil & Gas, Power and Marine markets. The company offered its assessment of it end-user markets and believes that its Marine business will be “impacted by a lack of significant new orders”. The Oil & Gas sector has “reverted to the more usual levels of business in most areas … and the return of some stability in the oil price shows signs of a better market as we enter 2009/10.” Finally, AVEVA says that it has “seen a constant level of business in fossil fuelled power facilities and a slow but steady build up of order flow in the nuclear market.“

CEO Richard Longdon is quoted in UK media saying that the “trading outlook had not worsened since April and may have improved slightly.” In this economy, ‘not getting worse” may be good enough.
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