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Market outlook

The diverse nature of Servelec’s business and our flexible product portfolio allow us to operate in numerous market sectors across our segments. Traditionally, we have focused on industries with high barriers to entry where our expertise and high levels of intellectual property bring a competitive advantage.

Core Markets

Mental, community and child health, acute care, adults and children’s social care, education in local government.

Core Markets

Oil & Gas, power, nuclear,
infrastructure and defence.

Core Markets

Water, energy, utilities, broadcast, rail.

Market position

Market leading in mental, child and community health sectors in the UK. Market leader in adult and child
social care market. Market leader in the provision of education management software to local government. Positioned well to play a leading role in the Integrated Care agenda nationally.

Market position

Leading supplier to Tier 2 operators in oil and gas market, and Tier 1 companies in energy, infrastructure and defence with a focus on opex reduction at brownfield sites.

Market position

Market leader in UK water industry,
established global distribution channels
which will be the key driver of growth.

Market drivers

  • Regulatory changes and tightening budgets are focusing these markets on integration and interoperability
  • Healthcare and social care providers are under increased pressure to make efficiency savings whilst still delivering high standards of care
  • Mobile working practices drive the need for modern systems to support efficient working practices
  • Government policy is increasingly focused on giving clients greater choice and control over services in order to promote independence
  • Systems within education that are managed by local authorities are increasingly interacting with social care providers with the aim of early intervention with troubled families
  • Health practitioners in schools require access to NHS patient records leading to further convergence of care across education and social care
  • Local authorities will need to enable citizens to port their accounts without a break in their care
  • There is an increasing expectation from patients to be able to access their records online
  • A move towards Integrated Care and sharing information securely across multiple care settings

Market drivers

  • Regulatory requirements and operator cost saving initiatives focused on reducing the cost of extracting oil and gas from ageing offshore platforms
  • Health and safety drives a significant proportion of business including the move towards onshore remote operations of offshore platforms
  • The Dollar price of oil will impact investment in new projects in 2017 but drive the need for opex reduction in exploration and extraction
  • The requirement to significantly extend the life of existing platforms in the face of decommissioning costs
  • The 'lower for longer' oil price is expected to put more pressure on Owner Operators to reduce costs whilst improving efficiencies
  • Regulatory requirement and significant government investment in high hazard reduction within legacy power facilities
  • Replacement of obsolete technology with modern designs to maintain modern safe operational standards
  • Investment for plant life extension of existing power stations to support continued generation
  • Improved efficiency and reductions in cost base to maximise asset performance in generation

Market drivers

  • The current UK water sector RTU estate requires regular refreshment and routine replacement
  • Pent up demand in the water industry following a continued slow start to AMP6 (Asset Management Plan), but the same regulatory spend
    is still expected to take place within a truncated three-year period
  • This AMP period investment is considerably greater than the last period, with Servelec’s products timed well to capitalise on what water companies need
  • Global RTU markets remain strong motivated by the drive for real-time data to make informed business decisions
  • Customer demand continues to grow for increased monitoring of networked data for business optimisation to deliver operational cost savings
  • Globally, the goal of reduced operational costs is a constant and Servelec’s business optimisation solutions achieve this objective

 

Read our 2016 Results

Positioning the business well for 2017 and beyond.

Click here to read the full report