Servelec thriving after successful float

15 January 2014

Servelec Group, which floated on the main market last month, has said it has continued the good progress it made through 2013 since the listing and its full-year results would be in line with expectations.

The Sheffield-headquartered business, which provides software, hardware and services to such industries as healthcare, oil and gas and utilities, floated on the main market and its £123m valuation made it the largest tech initial public offering in three years.

Sales activity in its healthcare arm was said to be increasing, while the company said a shift from the design stage to the pricing stage for certain products and services made by its automation division was progress according to plan.

The integration of Semaphore, acquired in October, was progressing well and Servelec has recruited Andrew Sullivan from Ultra Electronics as managing director of Servelec Technologies to assist this process.

Servelec chief executive Alan Stubbs said: "Following our successful listing, we are pleased that our strong performance has continued to deliver a full-year performance i line with the board's expectations.

"The outlook for the structural and regulatory growth drivers across our markets remains encouraging and we are looking forward to capitalising on these exciting opportunities as a listed company."

In the year to 31 December 2012, Servelec had revenues of £39.4m giving an adjusted profit before tax of £11.9m. Servelec Healthcare contributed £16.7m in revenue and adjusted profit before tax of £8.7m while automation had revenue of £22.6m and adjusted profit before tax of £4.7m.

The business, which employs about 500 staff, will post its results for the year to 31 December 2013 in March.