AVEVA H1 Profit Rises, Hikes Dividend; But Shares Down

(RTTNews) - AVEVA Group Plc (AVV.L, AVEVF.PK) reported Monday a higher profit in its first half, benefited by increased revenues. Further, the provider of of engineering data and design IT systems announced higher dividend, and said it is well positioned to deliver against the Board's expectations for the full year.

Meanwhile, Enterprise Solutions segment is projected to report full-year revenue broadly in line as slower than anticipated growth in the first half will lead to a lower than expected revenue outcome. AVEVA shares are currently trading around 8 percent lower in London.

The company's first-half pretax profit improved 6 percent to 27.3 million pounds from 25.8 million pounds a year ago. Profit to equity holders of the parent increased to 19.80 million pounds or 29.59 pence per share, from 18.30 million pounds or 26.95 pence per share.

Adjusted pretax profit, which excluded certain items, was 32.3 million pounds, compared to 28.6 million pounds in the prior year. Adjusted earnings per share increased to 35.16 pence, from 30.10 pence.

Revenue rose 11 percent to 108.5 million pounds, from 97.6 million pounds a year ago driven primarily by the Oil & Gas market. Engineering & Design Systems segment's revenue grew 12 percent due to further growth in demand from Engineering Procurement and Construction customers. Enterprise Solutions revenue was up 5 percent, but the growth was slower than expected principally due to certain customer-specific external factors.

Further, the company said its Board has declared an interim dividend of 5 pence per share, an increase of 11 percent. The dividend will be payable on February 3, 2014 to shareholders on the register on January 3, 2014. Looking ahead, Chief Executive Richard Longdon said, "AVEVA remains well positioned with broad exposure to multiple growth markets and high recurring revenues. … The pipeline for the ES division remains substantial, and we remain confident of the long-term potential in this business. 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."

In London, AVEVA shares are currently trading at 2,362 pence, down 204 pence or 7.95 percent.