AVEVA Group plc and Kainos Group PLC reporting final results

The week ahead

In the UK, earnings announcements pick up pace this week, including maiden results from () and (LON: BYIT) and maiden finals from (). 

These results will be a test for the market, as all three companies have performed tremendously well since their initial public offerings (IPOs). Auction Technology is up 64% on its IPO price and capitalised at nearly £1bn while Bytes is up 94% and capitalised at £1.25bn and Calnex is up 140% and capitalised at £100mln. Also, Group PLC (LON: KNOS) reported finals this morning, while AVEVA Group PLC () reports finals tomorrow and PLC (LON: OMG) reports interims on Wednesday.

AVEVA, the FTSE giant that provides engineering and industrial software, reports March year-end final results tomorrow. In its trading update in late April, it said it achieved double-digit revenue growth during the second half on an organic constant currency basis. Consequently, full-year revenue was flat year-on-year, on the same basis, reflecting the COVID-19 disruption during the first half. This was in line with AVEVA’s plan for the year. The acquisition of OSIsoft completed on March 19. On an organic constant currency basis, OSIsoft grew revenue by a mid to high single-digit percentage rate in the year. The company also announced that its chief executive officer (CEO), Craig Hayman, had decided to return to the US for personal reasons. Peter Herweck has been seconded from Schneider Electric on request of the AVEVA board to the role of AVEVA’s CEO.

Calnex, which provides test and measurement solutions for the global telecommunications sector, announces final results tomorrow. In its trading update in February, it said that the strong levels of customer spend experienced in the first half had continued into the second half of FY21. Hence, revenues for FY21 will be ahead of market expectations. Management noted that the COVID-19 pandemic may have influenced certain customers’ spending patterns, resulting in some revenues being brought forward into FY21. In addition, due to lower travel and event costs related to the COVID-19 restrictions, higher margins are expected to be achieved in FY21 than would have been anticipated, which will result in profitability also being ahead of market expectations in FY21.

 reports interims on Wednesday. In its AGM trading update in February, it said it was trading in line with achieving market expectations for the full year ending September 2021. In line with previous years, the group expects to be second-half weighted in terms of revenue and management said it remains encouraged by the strong pipelines building across the business. Earlier this month, the company announced that its Vicon unit had secured a contract with game developer Sharkmob.

Auction Technology, which provides scalable marketplace technology for curated auctions, announces interim results on Wednesday. This will be the group’s first set of results since it floated on the London Stock Exchange’s Main Market in February.

Bytes Technology, the technology services provider, announces final results on Wednesday. The company listed on the London Stock Exchange’s Main Market in December and this will be the group’s first set of results as a quoted company. In a trading update in February, the company said it expects to report preliminary results “somewhat ahead of market expectations”. It said adjusted operating profit growth was in the upper teens, which was entirely organic. The net cash position at 28 February 2021 was ahead of management’s expectations at £20.7mln.

Across the pond, tech-related companies expected to report this week include Agilent, Intuit, Zscaler, NVIDIA, DXC, GSX Techedu, Snowflake, , QAD, Nutanix,…