(Reuters) – British industrial software firm Aveva reported a 10% jump in April-May revenue on Thursday and laid out new five-year targets, including revenue gains of at least $100 million from its $5 billion purchase of OSIsoft.
Aveva, which will present the targets to investors later in the day, said it made a “good start” to the new financial year that began in April, as business activity picks up after disruptions caused by the COVID-19 pandemic.
It plans to derive new revenue from OSIsoft – which makes software that captures data from ships, chemical boilers, power plants and other facilities across industries – by cross-selling its products to OSIsoft customers and through an international expansion.
The FTSE 100 firm said it was targeting revenue growth at a compound annual rate of 10% by fiscal 2026, with recurring revenue contributing at least 80% to the total, up from roughly 68% currently.
The company is also targeting margins of at least 35% on adjusted earnings before interest and taxes, it said.
More businesses buying cloud- and subscription-based software would boost recurring revenue, Aveva said in a presentation, adding that trends around aritifical intelligence, cloud software and the internet-of-things would drive long-term growth.
The company’s revenue jump in April-May and its five-year targets are calculated on an organic, constant-currency basis, it said.
Shares in Aveva were up 3.7% at 3,845 pence on the London Stock Exchange by 0730 GMT.
(Reporting by Sachin Ravikumar in Bengaluru; Editing by Saumyadeb Chakrabarty, Aditya Soni)
