AVEVA Group PLC (LON:AVV) has hailed a “strong quarter of contract renewals” in the final three months of 2020 and that it remains “excited” about growth opportunities in the year ahead.

In a trading update covering the nine months to December 31, the engineering and industrial software firm said the strong renewals in the final three months of the period had helped to improve revenue growth to around 1.5% for the nine months, while recurring revenues grew 10% on the same basis to comprise 68% of total group revenue in the period.

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Revenue growth for the last three months of the period was over 26%, AVEVA said, highlighting a “significant number of scheduled subscription renewals” including a large three-year contract in the food sector, the early renewal of a large three-year engineering, procurement and construction contract that had originally been scheduled for the company’s fourth quarter, and the conversion of two contracts in the marine sector from annual fees to multi-year subscriptions.

Looking ahead, AVEVA said the order pipeline for the remainder of its financial year is “solid” thanks to “efficient digital demand generation” and several large renewals.

“The board remains confident in the full year outlook for AVEVA. Notwithstanding the disruption seen to the trading environment in 2020, the trend towards the digitalisation of the industrial world is strong and the Board remains excited about the significant growth opportunities ahead”, the company said in a statement.

Meanwhile, AVEVA said OSIsoft, a management software firm it agreed to acquire for US$5bn in August, achieved billings growth of 8.5% in the year to December 31, in line with management plans, and that it expects to close the transaction in early February after receiving expected approval from the Committee on Foreign Investments in the United States (CFIUS).

Shares in AVEVA jumped 5.9% to 3,768p in early deals on Friday.

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