LONDON (dpa-AFX) - AVEVA Group plc (AVV.L), on Wednesday, issued trading update for the financial year ended 31 March 2022, and reported 18% revenue growth in the fourth quarter on a pro forma organic constant currency basis, driven by a very good performance from PI System. This resulted in overall Group revenue growth on the same basis for FY22 of 7%, again with a strong contribution from PI System.
The Group expects adjusted EBIT margin to be consistent with the previous year pro forma results at just below 30%.
ARR increased by 9%, largely driven by the heritage AVEVA business, which grew ARR significantly ahead of revenue.
For fiscal 2023, revenue growth is expected to be lower than in FY22 and adjusted EBIT margin is expected to reduce, before resuming growth in FY24. Cash conversion is expected to significantly improve in FY23 and beyond.
Also, AVEVA reconfirmed its previously announced financial targets for the five financial years ending 31 March 2026.
The company continues to expect a revenue Compound Annual Growth Rate or CAGR of around 10% between FY21 and FY26, on a constant currency basis, supported by revenue synergies relating to the OSIsoft acquisition, which are expected to be at least $100 million in FY26.
In addition, AVEVA still expects recurring revenue at over 80% of total revenue in FY26 driven by a continued transition to Subscription and the accelerated adoption of Cloud by customers.
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