Strong order book sets Servelec up for positive 2017 as turnaround plans take shape

A strong order book, improving market conditions and confidence in its turnaround strategy paint a more positive picture of the year ahead for listed technology business Servelec.

Since being forced to issue a profit warning last year, chief executive Alan Stubbs says a “full forensic review” of the business, which included changes to its senior management and sales teams, blended with the positive impact of recently acquired businesses, puts the group on a stronger footing for 2017.

“We undertook a major revaluation of the business across all divisions, invested heavily in our sales and management teams, including the replacement of the MD of our oil and gas team which has since seen a great new order pipeline,” Stubbs told TheBusinessDesk.com.

Changing its strategy as to how the business approaches its tougher sectors has also paid dividends.

“Power and infrastructure is a tough market, but while order values are falling to around sub £200,000, our contract win rate is 95%, a direct result of bringing in more sales support and a change in our culture and structures,” Stubbs says.

“This approach has seen us enter 2017 with a record order book and a strong pipeline of opportunities.”

The bedding in of Synergy and Abacus, the businesses Servelec acquired last with the aim of strengthening the group’s care divisions, are also on track.

“Synergy already had good processes and systems upon acquisition, and a strong sales drive focus; and with Abacus we took action quickly to reduce its cost base and now expect the business to start contributing this year,” said Stubbs.

“Prospects and growing opportunities are being witnessed across all divisions, healthcare is on track, social care has seen strong sales opportunities and there is an ever-growing pipeline in the oil and gas market, where we have focused on going directly to operators, who are having to adapt their spending plans due to the ‘lower for longer’ dollar price of oil, and enticing them back with our competitive propositions.”