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Aveva Group PLC on Tuesday reported an interim revenue rise but suffered a widened loss due to higher operating expenses.
For the six months that ended on September 30, the Cambridge-based industrial software firm said revenue increased by 15% to £551.5 million from £480.9 million a year before. This change was "primarily due to a foreign currency translation", it said.
Annualised recurring revenue rose 12% to £876.2 million from £785.2 million a year ago.
Pretax loss from operations, however, widened to £77.6 million from £74.3 million. Aveva said the loss was primarily due to the amortisation of intangible assets of £109.4 million from £115.7 million a year earlier.
Total operating expenses rose to £498.7 million from £448.5 million, including research and development costs of £182.0 million, up from £164.9 million a year earlier.
Chief Executive Officer Peter Herweck said: "Aveva's business model transition to subscription and SaaS is accelerating with a good ARR progression to [12%] in H1 driving recurring revenue up to over 70% of total revenue."
Looking ahead, Aveva said it expects to achieve some revenue growth in the second half. It added that revenue will continue to benefit from a "significant currency translation gain" due to the strength of the dollar versus the pound.
In September, Aveva agreed to a takeover offer from French energy management company Schneider Electric SE in a deal worth around £10 billion. Aveva incurred £3.4 million in expenses in the recent half-year in connection with the proposed acquisition, which remains subject to Aveva shareholder approval.
Aveva declared an interim dividend of 13.0 pence per share, unchanged from a year prior. The record and payment date for this was brought forward to November 18 and December 9, respectively, so that it is paid before the acquisition by Schneider completes, which could be in the first of part of the first quarter of 2023.
Shares were up 0.1% at 3,140.00 pence each on Tuesday morning in London.
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