Servelec Group plc H1 Scheduled Trading Update (9526L)
July 25 2017 - 1:01AM
UK Regulatory
TIDMSERV
RNS Number : 9526L
Servelec Group plc
25 July 2017
25 July 2017
Servelec Group plc
("Servelec" or the "Group")
H1 Scheduled Trading Update
Servelec, the UK-based technology and software group, announces
a scheduled Trading Update for the half year to 30 June 2017.
-- A return to growth in underlying operating profit
-- Continued investment in product development
-- Strong cash collection in line with expectations
-- Strong balance sheet; net debt at 30 June 2017 GBP6.0m and
aiming to be debt free by year end 2017
Servelec HSC
Servelec HSC serves the health, social care and education
markets.
Servelec's Oceano Patient Administration System has successfully
gone live in University Hospitals Birmingham NHS Foundation Trust
(UHB) at the first attempt. UHB will act as an excellent reference
site for us in the future and is one of 16 acute trusts selected by
NHS England as a Global Digital Exemplar (GDE). Servelec is the
only supplier with established customers on both the Acute GDE
programme and the Mental Health GDE programme, meaning the Group is
exceptionally well placed to benefit as funding arrangements
continue to unlock.
Our healthcare and education businesses are trading in line with
expectations and have delivered profit growth at the half year.
Sales in Social Care are behind our expectations for the first half
of the year as although the opportunity in social care remains
significant, we have not converted as many of the available
opportunities as we had expected. We are confident of further
increasing our customer base by year end as our offering is
competitive in the market place.
During the period, we have continued to invest in further
developing our products across Servelec HSC, especially to support
mobile working, portal usage and channel shift.
Servelec Automation
Servelec Automation comprises Servelec Controls and Servelec
Technologies.
We are pleased with progress in Servelec Controls. We are
rebuilding strong relationships and winning orders from former
customers, enquiry levels are increasing and order entry is
growing. We are now under contract to deliver works required on the
third Centrica platform in the sequence and delivery of the second
platform is currently being commissioned and is due to be completed
in Q4 2017. We are still in active discussions to resolve the
previously announced issue relating to the Combined Heat &
Power plant project in Turkey which has shown no significant
movement during the period.
Within Servelec Technologies, the global market place is steady.
RTU sales related to the UK water AMP cycle are active but at a low
level however both projects and business optimisation product sales
have shown an uptick in growth.
Alan Stubbs, Chief Executive Officer of Servelec Group plc,
commented,
"We are pleased to report that we have returned to growth. We
have a number of exciting developments taking place across our
businesses as we continue to invest in our products and our people
to ensure our customers continue to receive the high level of
service they have come to expect from Servelec. We believe the
outlook for the Group remains positive."
Servelec Group plc will release its preliminary results for the
half year ended 30 June 2017 on 12 September 2017.
<ENDS>
For further enquiries, please contact:
Servelec Group plc
Alan Stubbs, Chief Executive Officer
Mike Cane, Chief Financial Officer
Pamela Weeks, Head of Corporate +44 (0) 1246
Communications 437 400
Investec Bank plc
Patrick Robb/Matt Lewis +44 (0) 207
Dominic Emery/Sebastian Lawrence 597 5097
Tulchan Group
James Macey-White/Matt low/Deborah +44 (0) 20
Roney 7353 4200
Notes to Editors:
Servelec Group plc is a UK-based technology group, with
significant intellectual property, providing software, hardware and
services predominantly to the UK healthcare, oil & gas,
nuclear, power, water, utilities, broadcast and rail sectors.
Servelec has two operating divisions; Servelec HSC and Servelec
Automation:
- Servelec HSC specialises in the design, development and
implementation of Electronic Patient Record (EPR) and Patient
Administration Systems (PAS), Social Care Case Management software
and early Years education software within secondary care and social
care and education in local government settings and is a market
leader in the Mental Health, Community Health and Social Care
sectors in England.
- Servelec Automation provides complex, mission-critical control
systems to large blue-chip companies mainly in the UK, focusing on
the oil & gas, nuclear, power, infrastructure, utilities,
broadcast and rail industries. Servelec Automation also provides
services from consultancy through to design, implementation,
delivery, installation and on-going customer support and
maintenance.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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