ServicePower forecasts stronger earnings

SERVICEPOWER Technologies has announced that it expects to make a maiden profit of £800,000 for the six months to June 30 following a series of new contract wins.

The Stockport-based provider of field management software also said that it expects earnings for its full year to be ahead of current market expectations.

Servicepower said that revenues for the firm six months are expected to be around £6,m, and that its net cash position by June 30, will be slightly ahead of six months ago at around £3.9m.

Moreover, a series of recently-announced contract wins – some of which stretch over several years – has helped to create “a greater level of revenue visibility” for the second half of 2011 and beyond. These include a deal with US-based food safety company Steritech, a contract with UK hi-fi retailer Richer Sounds and a potentially “transformational” deal with a Tier 1 retailer which could eventually be worth up to £12.5m.

ServicePower CEO Mark Duffin said: “This has been another strong trading period for ServicePower. We are gaining significant traction in the outsourced services market, securing new business in the period with some of the largest retailers and insurance providers in the world.

“We believe this success has been achieved due to the superiority of our technology and the breadth of our services offering. Our pipeline for the second half of the year is healthy and we therefore expect to achieve a result for this year ahead of current market expectations.”