By Scott Kanowsky
Investing.com -- Shares in AVEVA Group plc (LON:AVV) rose sharply on Wednesday, after the British industrial software provider posted a 7.7% rise in pro forma annual adjusted operating profit, rising to £365.1M, thanks in part to a jump in revenue driven by strong demand for its data management products.
The company also said it made "good progress" in its move to integrate OSIsoft, the data management software manufacturer it bought in 2020. Aveva added it expects the deal will lead to pre-tax cash cost synergies of at least $30M per annum by the end of March next year.
“Aveva delivered a solid set of results in FY22 as the business recovered following disruption caused by the Covid pandemic," Aveva CEO Peter Herweck said in a statement.
But Aveva warned revenue is expected to fall in its next fiscal year, citing several factors, including its ongoing transition to a subscription-based business model, wage inflation, and the war in Ukraine's impact on its Russian operations.
"[T]aking all of these factors into account, revenue growth is expected to be lower in FY23 than in FY22 on an organic constant currency basis and adjusted EBIT margin is expected to reduce, before resuming growth in FY24," Herweck said.