Aveva banks on energy and power efficiencies to spur rebound
AVEVA recorded a pre-tax profit of £34.2 million in the year ending March 31, down from £92 million in 2020, with revenue dropping to £820.4 million (£833.8 million).
But the industrial software company is confident that it will prosper from the energy transition and environmental efficiency by driving digital transformation - and foresees strong subscription growth continuing. Moreover the $5bn acquisition of OSIsoft in March unites unites leading brands in industrial software and industrial data platforms.
While the pandemic had a direct impact on planned capital projects being postponed, demand shift from 3D design software to project execution software grew:
- Engineering which contributed 42% of revenue during the year, saw significant contract wins with EPC’s such as Wood, Worley, and Petrofac. Likewise, demand shift to plant operations led to an increase in orders from owner operators managing engineering information as the core of the digitalization strategy within their existing plant facilities. There were a number of significant wins including with Shell and BHP Group, while we also had an increase in orders from the Power End market with significant contract wins from companies including EDF.
- Monitoring & Control represented 32% of AVEVA’s total revenue as customers continued to focus on operations efficiency, remote operations, and collaboration. AVEVA also saw strength in mid-stream Oil & Gas with as a result, there were several O&G wins including from SoCalGas. In other sectors AVEVA also achieved significant order wins from customers including BHP Group.
- Asset Performance Management represented 14% of total revenue with AVEVA winning its first mining customer in APM and continued a substantial global roll out with an Energy major.
- Planning & Operations represented 12% of total revenue with growth supported by sales of Supply Chain planning solutions to help customers in the Energy sector operate efficiently in the context of the disrupted market. There was also growth in the Food & Beverage and Metals and Mining sectors for Manufacturing Execution software.
Peter Herweck, CEO of Aveva Group, said through 2021 it helped industrial customers successfully navigate the short-term challenges of the pandemic whilst also creating innovative solutions to achieve their digitalisation goals. "The acquisition of OSIsoft brought a real sense of excitement from our employees and customers and our conversation is now focused as the recognition of the power and value of the combined products sets become apparent," he said.
“It’s clear that moving forward, Aveva has a strong springboard for the future long-term growth of the business. As we look ahead, we do so in the knowledge that AVEVA is optimally positioned to support customers in their digitalisation journey and in creating more sustainable and resilient businesses."
Airswift Competentia merger spurs global digital recruitment
Airswift and recruiting and workforce management specialist Competentia have merged to form one of the world’s foremost workforce solutions providers serving the energy, process, infrastructure, mining and technology industries.
The combined entity, which retains the Airswift name, will offer clients enhanced global access, particularly in the Americas, Asia Pacific, Europe and Africa. Competentia recently opened an office in Texas, complementing Calgary, Anchorage and Houston in the region.
Airswift chief executive, Janette Marx, will be CEO of the merged entity and Competentia Group CEO, Jayden Wallis, will play a key role on the executive team as Chief Marketing Officer and SVP of ASPAC. Kyle McClure will become CFO of the combined company.
Marx said there had been a long been mutual admiration between both companies, which share a mutual ambition to become the workforce solutions provider of choice for clients, candidates and contractors in the energy and technology industries.
“In a rapidly digitizing, post-pandemic environment, companies across the world’s technical sectors must quickly respond to new ways of working to achieve sustainable, long-term growth," she said. "We believe that our combined size and experience, and our firm focus on the energy transition, perfectly positions us to help clients respond to the complex workforce challenges of the future. Through digital and people-based solutions, we will ultimately shape the technical sectors of tomorrow.”
As a result of the merger, mid-market and blue-chip companies alike gain access to an even broader range of truly integrated services. Talent acquisition, professional search, international contractor management, global employment outsourcing, consultancy and payroll management are just a few of the workforce solutions on offer.
Wallis added: “We see this as an opportunity to create the world’s most forward-thinking workforce solutions provider.
“We also believe we have a key, supporting role to play in enabling the energy transition, not only in the industries we serve, but through responsible business operations, business models, investment in technology and innovation, and collaboration with our peers. Our combined strength and shared ambition mean we’re even better placed to deliver on that.”
Ian Langley, Airswift’s Chairman, said: “It was obvious from our opening call that a potential merger had great merit. Not only did our combination make perfect commercial sense, but we found that our organizations had similar cultures and aspirations, and we quickly discovered a unique alignment.”
Airswift and Competentia’s private equity backers, Wellspring Capital and Reiten & Company respectively, are retaining their stakes in the merged entity and will continue to be actively involved with the business. Airswift has also issued a bond on the Norwegian bond market to ensure maximum flexibility and access to alternative funding in the future.
Matthew Harrison, Managing Partner at Wellspring Capital, said: “Airswift and Competentia share the same foundational values and are guided by both delivering excellence to their clients and creating a great employee experience. Together they can do this even better, and I look forward to seeing the new merged company do great things.”
Bård Ingerø, Managing Partner at Reiten & Co concludes: “These are two companies with such similar cultures and successful track records, which we believe will fit together seamlessly to offer the market the greatest possible breadth, depth and quality of services, wherever clients may operate.”
Patrick Tame, CEO of Beringer Tame, says only agile and digitally savvy businesses have survived the storm from the pandemic, and will continue to do.
“The battle to keep ahead in an environment of rapid technological, market and consumer behaviour changes has caused businesses to rush to hire digital talent that has enabled them to shift the way they operate," he writes.
"When there are skill shortages in a particular sector - such as the digital market - hiring the best, before the competition, can make a real difference when it comes down to overall business success. So the businesses that are privy to a team of consultants who boast priceless depth of industry knowledge and mastery are guaranteed to have a competitive edge."