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Interim Results 2015

Half year results for the six months to 30 June 2015

Good first half with strong growth prospects giving confidence for the full year

Servelec Group plc ("Servelec" or the "Group"), the UK-based technology group which provides software, hardware and services predominantly to the UK Healthcare, Social Care, Oil & Gas, Nuclear, Power and Utilities sectors, today announces its results for the six months ended 30 June 2015. 

FINANCIAL HIGHLIGHTS

     

£m 6 months to 30 June 2015  6 months to 30 June 2014 % change
Revenue 30.0 25.0 20
Underlying operating profit* 6.3 5.0 25
Operating Profit from continuing operations    4.9 4.4 11
Profit before Tax from continuing operations   4.8 4.4 9
Order entry**   44.1 29.0 52
Cash flow from operating activities   11.2 8.9 25
Adjusted basic earnings per share*** 6.9p 5.7p 21
Basic earnings per share   5.3p 5.0p 6
Dividend per share 1.65p 1.5p 10

* after adding back amortisation and share based payments expense.
** order entry is the total contract value of revenue from an order received in the period.
*** after adding back acquired amortisation, share based payments expense and the related tax adjustment.

 

  • Revenue increased 20% to £30.0m (H1 2014: £25.0m).
  • 25% growth in underlying operating profit to £6.3m (H1 2014: £5.0m). Organic growth of 6%.
  • Order entry up to £44.1m (H1 2014: £29.0m).
  • Excellent cash generation at 168% of underlying operating profit (H1 2014: 173%).
  • Adjusted EPS is 6.9p (H1 2014: 5.7p).

OPERATIONAL HIGHLIGHTS

Health & Social Care

  • Successful integration of Corelogic and acquisition of Aura both broaden Servelec’s offering and strengthens the positioning for the North Refresh and the market moving towards converged care.
  • Significant success in the refresh in London and the South with 20 out of 30 trusts retained and 10 trusts already migrated off the National Programme solution.
  • Further win from North New with other tenders at preferred bidder status – sales activity in North New and North Refresh continues and will spread over a longer period as trusts take advantage of extensions to facilitate their exit from the NPfIT.
  • Servelec Healthcare named preferred supplier for deployment of PICS (Prescribing Information and Communications System) at Royal Orthopaedic Hospital, Birmingham.

Automation

  • Servelec Technologies confirmed as nominated RTU supplier for AMP6 projects by a number of existing water companies. Order entry to commence during H2 2015 and into 2016.
  • Strengthening of Controls management team delivering results in a competitive marketplace with record order entry achieved in Power & Nuclear.
  • New major contract to upgrade systems on an offshore platform received early July with others expected to follow.

 

Alan Stubbs, Chief Executive Officer, commented:

"We are delighted with the performance delivered by our Health & Social Care division and contribution from Servelec Corelogic. In addition, Aura has already achieved some successful tender activity under the Servelec brand for its Flow product.

Recent contract wins in Controls, including record order entry for Power & Nuclear contracts and a new large contract for the upgrade of systems for an offshore oil platform provide confidence for the full year result. In Technologies we are awaiting the commencement of procurement for AMP6 and expect order entry in the second half of the year."

The Board is confident about the prospects of the Group and overall outlook for the business.”

 

Read the full announcement here

Visit our interim results page here

 

 

For further enquiries, please contact:

Servelec Group plc : +44 (0)1246 437 400

Alan Stubbs, Chief Executive Officer
Mike Cane, Chief Financial Officer
Holly Smart, Investor Relations

Investec Bank plc : +44 (0)207 597 4000

Andrew Pinder / Dominic Emery
Patrick Robb / Sebastian Lawrence

Tulchan Group: +44 (0)20 7353 4200

James Macey-White
Louise Hogberg

 

RNS Number : 2128X
Servelec Group plc
27 August 2015

Category: Financial, Group