24th Jan 2017 09:21
LONDON (Alliance News) - Servelec Group PLC on Tuesday said its full-year results are expected to be in line with its revised expectations, and it is confident in its outlook.
The software provider said its decision to reduce operational headcount while strengthening sales resources in its Health & Social Care unit have "contributed" to the delivery of the in-line results, along with the strong performance of the Synergy business it bought in April.
Servelec said the division continued its high win rate of opportunities in the social care market following a strong first half, and said there is a good pipeline of opportunities for the unit to grow in 2017 both in terms of social care and healthcare.
Meanwhile, in Automation, both its businesses, Controls and Technologies, have benefited from contract wins, and Servelec said the situation involving a GBP2.6 million receivable on its combined heat and power plant in Turkey looks to be resolved.
The end-client appears to be "nearing the end of financial negotiations" with a bank which will release the next tranche of funding, Servelec said, though it noted it is unlikely it will receive payment before its results in March.
"We are pleased to confirm that the full-year results will be in line with the board's revised expectations. During 2016 the business has made significant strides forward in terms of product development, acquisitions, market development and staff development," said CEO Alan Stubbs.
"The board is pleased with the positive signs apparent across our businesses and whilst challenges persist in some of our markets we are confident in the future outlook for the group," the chief executive added.
Shares in Servelec were up 1.6% at 293.25 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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