ServicePower in bid talks

STOCKPORT’S ServicePower has confirmed it has received an offer for the business.

But the AIM-listed group, which saw its shares rise around 20% to 6.25p yesterday, said the value of the bid was too low to recommend it to shareholders.

In a brief statement to the market the group, which specialises in outsourced field management, said the unnamed bidder was “reconsidering its position”.

In March ServicePower announced a hike in annual profits to £600,000, helped by a significant gain in foreign currency conversion.

The company would have made a loss, were it not for the £3.1m made through currency conversion for the year to the end of December 2008. Revenues increased by 11% to £15.6m.

Last year, ServicePower restructured itself as a sales rather than technology-led company. Chief executive Mark Duffin believes revenue growth has been driven by new product launches, a strengthened sales team and increased marketing.