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AVEVA makes solid progress as it closes 'significant' contract
Engineering data and design IT systems provider AVEVA Group updated the market on its trading for the nine months to 31 December on Monday, and detailed a recent significant contract.
The FTSE 250 company said it performed "strongly" in the first nine months of its financial year, with the improving growth trend seen in the first half continuing into the third quarter.
As a result, the board said the group delivered constant currency revenue growth in the first nine months across all reporting regions, with a "particularly good" performance reported in Asia Pacific.
"This improved performance was driven by a sharp focus on sales execution, combined with a stabilisation of conditions in our Oil & Gas and Marine end markets," the board said in its statement.
"This strong execution has continued into January, with the closing of a significant contract with one of our key Global Account EPC customers."
That substantial three-year renewal contract would amalgamate business into one enterprise agreement, the board explained, with a "broader scope" following customer consolidation.
"This contract is expected to make a material revenue contribution to the current financial year."
As a result of those developments, AVEVA said it was now ahead of the board's previous revenue expectations for the current stage of the financial year, albeit with the final and "most significant" quarter of the year yet to complete.
As it previously communicated, completion of the proposed combination of AVEVA and the Schneider Electric industrial software business was expected to occur at the end of February, the directors added.
The review procedure of the Committee on Foreign Investments in the United States was still ongoing, and clearance was expected to be received on or around 9 February.
"AVEVA intends to provide an update on trading for the Schneider Electric industrial software business on or around 15 February," the board explained.
The firm said it would update the market on other matters, including the appointment of a new chief executive officer, in "due course".