12th Mar 2014 09:52
LONDON (Alliance News) - Servelec Group PLC posted broadly flat pretax profit for 2013 in its first results since listing on the London main market, as strong growth in its Automation division offset declines in its Healthcare division.
Servelec posted a pretax profit of GBP10.9 million, broadly flat on the previous year, as revenue rose to USD42.0 million from USD39.4 million in the previous year but was offset by higher sales costs and administration expenses.
Automation revenues rose to GBP27.1 million from GBP22.6 million in the previous year, boosted by new project wins and a good performance from its Warrington office, which was opened in 2012.
Healthcare revenues declined to GBP14.9 million from GBP16.7 million, due to lower revenues from the National Programme for IT in the UK National Health Service, which comes to an end in October 2015.
Finally, in its Servelec Technologies division, revenue rose to GBP11.8 million from GBP6.3 million, boosted by its acquisitions Tynemarch Systems Engineering Ltd and Semaphore Ltd.
Servelec said it expects revenues in this segment from individual health sector trusts will increase substantially in 2014 and 2015.
The software company launched its initial public offering in December 2013, separating from the company's Singaporean parent company CSE Global Ltd, who owned the business for 13 years.
"As a newly independent business and recently listed on the main market of the London Stock Exchange, Servelec is well positioned to take advantage of the considerable opportunities for growth and development in the year ahead and beyond," said Chief Executive Officer Alan Stubbs in a statement.
The company said it is committed to having a progressive dividend policy. However, due to the proximity to its initial public offering, it will not pay a dividend in 2013. It expects its first dividend will be an interim dividend in 2014.
Shares in Servelec were trading up 0.5% at 268.45 pence Wednesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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