Servelec struggles to steady itself after profit warning

SERVELEC is trying to keep its head above water following a profit warning last month which it put down to “further slippage in contracts.”

It said its expectations were still in line with the announcements made in June, but that it had reduced headcount in its healthcare division as a response.

Following the warning last month, Servelec’s share price dropped off, plummeting to a low of 228.0p from a high of 340.0p the day before the announcement. Since then the Sheffield technology company has been unable to bounce back.

Servelec did not disclose how many jobs were made redundant in its trading update this morning, but the company have been contacted for comment.

This year the Health & Social Care division also acquired Synergy and Abacus,

Alan Stubbs, chief executive of Servelec Group plc, said: “Our half year position means we believe that our full year outlook will be in line with the Trading Update issued in June.

“Conditions in some of our markets remain challenging but we continue to gain market share and the Board is confident that we are taking the necessary corrective actions in both Health & Social Care and Automation, for the business to succeed. We remain confident that we will generate shareholder value going forward.”