11th Mar 2015 10:18
LONDON (Alliance News) - Software and hardware provider Servelec Group PLC Wednesday proposed a maiden final dividend and expressed confidence in its outlook for 2015, as it posted a slight decline in pretax profit for 2014 due to higher administrative costs.
It proposed a maiden final dividend of 3 pence per share, taking its total dividend for the year to 4.5 pence.
Servelec reported a pretax profit of GBP10.6 million in 2014, down from GBP10.9 million in 2013, as a rise in revenue to GBP51.8 million from GBP42.0 million was offset by higher cost of sales, and administration costs due to the company's acquisition of Semaphore just before its initial public offering.
The company listed on the London Stock Exchange in December 2013.
Servelec said on Wednesday that revenue growth was driven by a strong performance for its Health & Social Care business due to contract wins. Last December the company acquired Corelogic Ltd for GBP23.5 million, which it has now incorporated into this division.
Additionally, its Technologies business saw revenue rise to GBP20.1 million from GBP11.8 million, bolstered by the integration of Semaphore.
Its Controls business produced flat revenues, as growth in its ongoing consultancy services continued but was offset by delays in orders from the oil and gas industry on the back of the fall in oil price. It expects these market conditions to continue into the first half of 2015.
"I am delighted with the performance of the Servelec Group in 2014 and I look forward to 2015 with great enthusiasm. We have delivered a strong set of results within our maiden year on the London Stock Exchange, as well as making important operational strides forward which position us well for growth and development in the year ahead and beyond," said Chief Executive Officer Alan Stubbs in a statement.
Shares in Servelec are trading down 0.2% at 291.40 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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