Servelec powers ahead with healthy revenue growth

A “DIVERSIFIED business model” is behind Servelec’s very healthy revenue increases, in the first year after its IPO.

For the six month to June 2015, the firm reported revenues of £30m, up from £25m in the same period last year.

Pretax profits reported by the firm reached £4.84m, up from £4.43 in the first half of 2014.

Servelec provides software and hardware to the oil and gas, healthcare, nuclear and utilities sectors, and debuted on the London Stock Exchange in 2014.

“Difficult conditions” in the oil and gas markets affected the firm’s Controls division, but the power division secured contracts worth £1m to support waste retrieval from silos at a major decommissioning site and implementation and support contracts with The National Grid.

Alan Stubbs, chief executive officer, commented: “The Group has delivered a good performance in the first half of 2015 with the overall result in line with expectations demonstrating the strength of our diversified business model.

“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.”

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