Final Results

6 April 2016

ServicePower Technologies plc

("ServicePower" or the "Company")

Final Results

ServicePower (AIM: SVR), a market leader in mobile workforce management software, announces its audited results for the year ended 31 December 2015.

Financial Summary

· Revenue increased by 2% to £13.0 million (2014: £12.7 million)

o Reflecting growth in licenses and SaaS contracts

· ServiceScheduling segment licence and consultancy revenue was up to £6.1 million (2014: £5.6 million)

· Product revenue was up to £8.1 million (2014: £7.3 million)

· High percentage of recurring revenue

· Gross profit increased by 2% to £6.1 million (2014: £6.0 million)

· The percentage gross margin remained consistent year on year at 47%, with product gross margin at 65%

· Statutory loss after tax was £1.1 million (2014: £0.9 million) given investment in product development and greater amortisation of intangible assets

· Basic and diluted loss per share was 0.5p (2014: loss per share of 0.5p)

· Gross cash balance of £1.4 million (2014: £2.7 million) following a total repayment of £0.77 million unsecured loan facility

Operational Summary

· High client retention

o The pipeline and number of qualified leads have continued to grow

· Launched RESTful APIs and user interfaces - the first product to offer the power of an artificial intelligence algorithm solely as a cloud, Software as a Service offering, available on demand

· Launch of NexusFSTM platform - this will enable the broadening of the Company's product reach and innovation in the optimisation arena, strategic alliances, and will drive increasing global momentum

· Launch of Optimization on Demand

· Development of new algorithm Quantum Annealing

· Continued investment in R&D

Marne Martin, CEO of ServicePower, commented:

"With a proven ability to win new customers, the validation by Gartner of the investment in strategic innovation and development of our global field management platform, ServicePower is positioned for a strong performance in 2016 and beyond. Our growing, prestigious client base, which include well-known global brands, is proof of our commitment to providing the best and most technologically advanced field management tool in the world. Trading in 2016 has continued in line with management forecasts, and we are confident of a successful outcome to the year."

For further information, please contact:

ServicePower Technologies Plc

Joint Statement of the Chairman and Chief Executive

_________________________________________________________________________________________

ServicePower Technologies Plc ("ServicePower") provides the leading wholly-configurable optimisation technology in the field service industry for employed and contracted technicians. During 2015 we launched two new products: NexusFSTM and Optimization on DemandTM and developed the first new algorithm in decades: Quantum Annealing, which brings the latest in optimisation technology to the wider mobile worker marketplace. ServicePower's technology aims to provide field service organisations with end to end functionality, which can be used to route and dispatch employed, contracted 3rd party or on demand field resources enabling clients to mix resources to achieve productivity, cost, margin or customer service objectives.

Continuing to grow product revenues and finance the development of the new technology was the focus in 2015. Turnover and product revenues grew despite the cessation of a pass-through contract that until a few years ago was the Company's largest contract. The Company has also built a platform and migrated of the majority of its products to the Cloud. This can be scaled more efficiently in the future and greater cost efficiencies are expected in future years. The pipeline and number of qualified leads have continued to grow. Client retention remained very high whilst enterprise sales cycles remain long, typically 12-24 months for ServiceScheduling, they are shorter with the other applications, and are expected to be shorter with the new products being launched more widely in 2016.

The financial results for 2015 represent growth in license revenues and SaaS contracts, with increased investment in R&D and associated overheads leading to a loss for the year. Invitations to bid and interest from prospects continues to increase, and there is strong interest in the overall product suite following the investment in it. Technologically, 2015 was the Company's most successful year to date related to pace of R&D output, which has continued into 2016 and the Board believe this is giving rise to increased brand awareness.

With £1.4 million of cash at 31 December 2015, the Balance Sheet remains solid, and ServicePower has a Field Service technology platform that is beginning to differentiate itself from the competition.

Historically, the Company has reported revenues in two segments: ServiceScheduling (including ServiceMobility and Smart Services/Broker) and ServiceOperations (including ServiceClaims and ServiceDispatch and ServiceMarket). The Company is moving to reporting revenue in the following groupings of SaaS, Managed Services, and License/Support and Maintenance in 2016, which fits with the migration to a single integrated platform for products and the launch of new cloud functionality for customers.

The Board is focused on growing turnover and profits organically by building channels and alliances, and winning new customers in the verticals where its products are best suited. It is intended that the Company will continue to launch new products, whilst at the same time expanding the reach of the updated existing applications and partner with other technology providers that are already engaged in complimentary activities in field service or are looking to strategically improve their position or enter the field service market.

ServicePower Technologies Plc

Joint Statement of the Chairman and Chief Executive (continued)

_________________________________________________________________________________________

Financial Review

Total revenue for the year increased by 2% to £13.0 million (2014: £12.7 million).

The ServiceScheduling segment licence and consultancy revenue was steady at £6.1 million (2014: £5.6 million). Efforts continue to implement new customer wins and upgrade customers for which additional professional services revenue will be recognised in 2016. The low margin pass-through contract previously reported in the ServiceScheduling segment has expired in 2015. Mobility, included within the ServiceScheduling segment, decreased by 40% to £0.3 million (2014: £0.5 million) given the investments and team allocation to developing the cloud offering in 2015.

ServiceOperations revenue increased by 2% to £6.0 million (2014: £5.9 million), including £0.3 million in licence sales.

In order to give additional detail, revenue can be split into product-related (Service Scheduling, Support and Maintenance, Claims and Dispatch, SaaS, ServiceStats, ServiceClaims Licences & GPS.), Managed Services (fully outsourced ServiceOperations) and Professional Services. Using this split, Revenue of £13 million (£12.7 million) can be split as Product related, £8.2 million (2014: £7.3 million); Managed Services £3.7 million (2014: £4.1 million) and Professional Services £1.1 million (2014: £1.3 million).

The Company continued to invest in expanding product functionality across all of its product range as well as its unified platform activities, investing £1.4 million in 2015 (2014: £1.1 million). Of this, £0.7 million (2014: £0.7 million) was capitalised in accordance with IAS 38.

Gross profit for the year increased by 1% to £6.1 million (2014: £6.0 million) and the percentage gross margin remained consistent year on year. Loss before tax was £1.2 million (2014: £1.0 million), primarily driven by increased investment in R&D and associated overheads leading to an increased loss for the year.

The basic and diluted loss per share for the full year was 0.5p (2014: 0.5p).

Cash balances were £1.4 million at 31 December 2015 (2014: £2.7 million).

Operational Review

Creating a complete field services platform

Developed as an industry agnostic platform, the ServicePower software supports customers in 27 industry verticals. Following the expansion of NexusFSTM functionality, a mobility platform for the SMB market, the Company also expects to be offering more inventory and asset management functionality beginning in 2016.

Optimisation on Demand, which was first launched in 2015, is the first product to offer the power of an artificial intelligence algorithm solely as a cloud Software as a Service offering, an on demand service for customers to choose the right level of optimisation for their business.

Our platform, anchored by the leading wholly configurable optimisation technology, has been developed over 20 years by field service experts and is unique in the industry. The patented Simulated Annealing technology and proprietary travel matrix engine provides field service organisations with a fully mobilised scheduling and dispatch solution which can be used to route and dispatch employed, contracted 3rd party or on demand field resources, based on robust rules based logic that enables clients to mix resources to achieve productivity, cost, margin, and customer service objectives. It intelligently schedules the best technicians for the best job, with the right parts to get the job completed the first time. It also provides robust logic to manage SLA (service level agreement) work and complex jobs that other competitive rules based products cannot deliver.

As a result of expanding the offering, a customer can now turn to ServicePower to manage the complete lifecycle of a customer or a job, using a variety of field resources, customer and work order management, to optimised scheduling and 3rd party dispatch, to mobile status updates, inventory management, signature capture, GPS tracking, payments, job pricing, inventory management, analytics, etc.

ServicePower Technologies Plc

Joint Statement of the Chairman and Chief Executive (continued)

_________________________________________________________________________________________

Creating a complete field services platform (continued)

Our platform also has robust capabilities with regard to Machine to Machine ("M2M") / Internet of Things ("IoT") connected services technology. A partnership with global device or other product manufacturers and a leading M2M technology provider enables proactive automation of field based events to provide far superior results for customers compared to competitors which simply monitor GPS devices.

The Market

The field service industry is one which is rapidly evolving. Increased competition in service, changing customer dynamics and reduced margins are driving field service organisations toward technology which can be used to improve their competitive edge and increase productivity and efficiency, as well as improve customer service. These, alongside new technologies like social, mobile, cloud, analytics and IoT are revolutionising field service. Customers also expect scheduled appointments to eliminate wasted time, and technicians are prepared and knowledgeable enough to complete the job on the first visit.

The continued advancements that the Company is making in the areas of the new products are in areas that capture the evolving demands in field service. Providing a scalable, fully mobilised field service management software platform at an affordable cost is yielding benefits to the Company's customers, and is attracting further interest from prospects.

Strategic alliances

The Company continues its focus on strategic partnerships and alliances growing relationships that are expected in future years to result in increased referrals. The new product launches are capable of being white labelled are a suitable for sale through indirect channels or strategic partnerships or alliances.

Growth Strategy

ServicePower has entered 2016 continuing to drive its strategy for growth, based around two areas of focus. These are:

1) Growth of product sales to existing and new customers either directly or through channel relationships

Optimisation technology is the foundation of the ServicePower platform. We are acknowledged by customers and analysts as being among the world's visionaries with our multi- layer, cost versus rules based optimisation, having invested 20 years of development into the ServiceScheduling software.

ServicePower differentiates itself by delivering an enterprise level solution, as evidenced by our long-standing global tier 1 customer base, which provides a strong foundation to grow turnover in both our core and additional industry verticals, in many geographies. Demand is growing for our products from existing clients, new clients and through potential channel partners that see the fit for their business and/or product lines.

ServicePower Technologies Plc

Joint Statement of the Chairman and Chief Executive (continued)

_________________________________________________________________________________________

1) Growth of product sales to existing and new customers either directly or through channel relationships (continued)

ServiceOperations is experiencing steady growth and demand in the marketplace. Being an independent provider of a truly multi-tenant SaaS platform is valued and the Company is winning business from competitors, especially with the dispatch functionality for the management of work to be performed by contractors.

2) Continued technology innovation and development

The Company's focus is on technology, solving not only today's field service challenges, but those of the future. Our ability to develop organically and launch new products is now proven. The pace of updates and innovation in the more mature applications has also accelerated. Continued product innovation is what drives the interest from prospects and customers alike and facilitates continued growth in product sales.

Outlook

With a proven ability to win new customers, the validation by Gartner of the investment in strategic innovation and development of our global field management platform, ServicePower is positioned for a strong performance in 2016 and beyond. Our growing, prestigious client base, including some of the best known brands in the world, is proof of our commitment to providing the best, most complete, and technologically advanced field management tool in the world. Trading in 2016 has continued in line with management forecasts, some additional cost efficiencies are being put into the business and we are confident of a successful outcome to the year.

Hugh Fitzwilliam-Lay, Chairman Marne Martin, CEO 5 April 2016

ServicePower Technologies Plc

Strategic Review

_________________________________________________________________________________________

Principal activities, trading review and future developments

The principal activity of the Group is the sale, hosting and implementation of field service management software, outsourcing and management of dispatch, claims and warranty processing, and the sale of GPS and mobility products.

Operations: ServicePower's focus is on providing technology solutions, services, and industry expertise globally to allow service businesses to operate with maximum efficiency. The Group's solutions and services enable our customers to address the three key service delivery challenges: i) offer a higher quality of service, ii) reduce the cost of service delivery, and iii) grow revenue and profitability. The Group's head office is based in McLean, VA, with offices in Stockport, United Kingdom and Santa Ana, CA in the USA. The Group has three subsidiaries, ServicePower Business Solutions Limited in the UK, ServicePower Inc and Service Network LLC in the USA.

Markets: The market for the Group's technology solutions and services is global, with most of its existing sales to companies throughout North America and the UK. Customers interested in the Group's solutions and services are those that employ in-house service engineers, or utilise a network of independent service contractors to respond to a request for service. These companies vary in size from large corporations with their own service engineers to small independent organisations with less than five technicians. ServicePower's enterprise optimisation software, ServiceScheduling, is targeted at those organisations which employ the greatest numbers and the ServiceOperations software is targeted at companies that manage service delivery through independent service companies. As part of the Group's total service product offering, our clients can, and sometimes do, outsource part or all of their service delivery operations. This service is delivered throughout North America, the United Kingdom and parts of Europe. In the future, the Group anticipates broadening its geographical reach.

Sales and marketing: In 2015, 68% (2014: 66%) of Group turnover (£8.8 million) was generated in North America (2014: £8.4 million). The Group continues to capitalise on the hundreds of man years of development already invested in its products. 2015 saw continued investment which brought a number of new products into the fold through internal developing. Clients continue to upgrade to the latest version of Scheduling. In 2015, 54% of revenue was generated from ServiceScheduling and 46% from ServiceOperations, (2014: 54% and 46%, respectively).

Research and development: To maintain the Group's leading edge software-based solutions, £1.4 million (2014: £1.1 million) in research and development costs were incurred in the year; of which £0.7 million was capitalised (2014: £0.7 million) The Group has research and development centres in North America and the United Kingdom that employed an average of 26 staff (2014: 26), through which the Group develops its own intellectual property. In addition, to meet the demand for further customer enhancements, the Group continues to develop intellectual property such as the Mobility, Nexus and Optimisation as a Service ("OaaS") products. Development costs capitalised in 2015 relate to ongoing development of the acquired Mobility software, Nexus and OaaS products with integration into the existing suite of products, as well as the development of the Group's Scheduling and Broker software.

Contract values: Customers can either i) buy a one-time perpetual licence for ServiceScheduling with an annual fee for support and maintenance and new releases or ii) pay for the use of the licence and maintenance on a hosted or SaaS basis. This latter type of contract is variable in size and can range in value and term, depending upon the nature of the contract. Revenue from ServiceOperations is typically earned from a cost per transaction approach.

ServicePower Technologies Plc

Strategic Review (continued)

_________________________________________________________________________________________

Key performance indicators (KPIs)

ServicePower operates in a complex and specialised field using the business model of a software sales company; the primary objective is to sell software licenses or hosted solutions using its software. In ServiceOperations, the goal is to maximise the number of transactions through the software. The KPIs of the Group have been identified as follows:

Revenue and deferred and accrued income: In the year, invoiced sales for the Group were £12.5 million (2014: £12.8 million). £13.0 million was recognised as revenue (2014: £12.7 million) and held in the balance sheet was deferred income of £2.2 million (2014: £2.7 million) and accrued income of £0.2 million (2014: £0.2 million). This provides an indication of the value of support and maintenance contracts that have been invoiced and paid, but not yet completed, and the value of transactional jobs completed but yet to be invoiced.

A breakdown of revenue from the ServiceScheduling segment is as follows:

A breakdown of revenue from the ServiceOperations segment is as follows:

Monthly recurring revenue: ServicePower has many ServiceScheduling maintenance contracts that are renewable annually and provide regular monthly revenue. Recurring revenue also comes from ServiceOperations clients, provided they continue to renew and previous transaction volumes can be relied upon to continue into the future. The renewal rate of the Group's customers remains stable and high.

Gross margins and loss before tax: The outcomes of both gross margin and profit before tax is dependent upon sales volume and the mix of the business. The gross profit was £6.1 million in 2015 (2014: £6.0 million). The Group had a loss before tax of £1.2 million in 2015 (2014: £1.0 million), as a result of the increased investment in R&D and associated overheads leading to an increased loss for the year.

Operating cash flow: ServicePower usually charges a percentage of the ServiceScheduling licence fee upon contract signature and the support and maintenance fees are invoiced annually in advance. This assists the Group with working capital requirements given that a significant proportion of costs are fixed employee-related costs. Trade debtors and other receivables at the end of the financial year were £2.4 million (2014: £2.5 million). Debtor days for the Group represented 42 days of invoiced sales (2014: 39 days). The trade and other creditors and accruals at the end of the financial year were £1.4 million (2014: £1.3 million) representing 75 creditor days (2014: 67 days). Cash outflow from operations for the year was £0.6 million (2014: inflow £0.8 million).

ServicePower Technologies Plc

Strategic Review (continued)

_________________________________________________________________________________________

Cash at bank: The Board pays particular attention to the cash at bank and cash movements and regularly reviews cash forecasts to ensure the financial commitments of the Group are met. ServicePower closed the financial year with cash at bank, including short term deposits, of £1.4 million (2014: £2.7 million). During the year the company redeemed in full its convertible loan notes, with the majority converted to shares and a cash element of £0.2m paid to a loan note holder.

Employee recruitment and retention: The Group increased its average headcount in the year by 5 to 109 employees (2014: 104), primarily as a result of organic growth. ServicePower operates in a knowledge-based industry and requires a highly skilled workforce, particularly within the development teams to maintain skill levels, flexibility and an ability to respond to market and client demands promptly.

Commercial risks and uncertainties

The key commercial risks and uncertainties facing the Group are as follows:

Recruitment, retention and training of employees: ServicePower operates in a knowledge-based industry and recognises the importance of the recruitment and retention of its highly skilled workforce.

Reference customers: The Group sells on the basis of adding value to the customer. A significant amount of the sales success is dependent upon the continued goodwill of existing customers to host reference visits by potential customers. This involves presentations by senior staff to demonstrate the value of the offering, the non-financial benefits and a demonstration of the software operating in real time.

Customer procurement timescales: The Group sells to global organisations which may have lengthy procurement processes, occasionally stretching over a considerable number of months. The procurement may go through several budgeting cycles, require board approval, face competition from other non IT-related projects and key decision makers may move on. For these reasons, it is difficult to forecast securing individual contracts, and it is almost impossible to predict the precise timing of the signing of contracts.

Unpredictable cash flow: To date, a significant portion of cash receipts have come from the sale of large software licences. The signing of contracts by large corporate customers is very difficult to predict due to long procurement cycles. Consequently, the Group has sought to reduce the impact of such sales by focusing the revenue streams towards a transactional and SaaS approach and developing other means of managing cash outflows, including identifying cost saving measures.

Exchange rate fluctuations: The Group has significant operations in North America and as such is exposed to movements in the US Dollar/Sterling exchange rate. This risk has historically been alleviated somewhat by the stability of the currencies and matching revenues and costs in the two currencies.

Technological advancement: The Group operates in markets where technical development of the products can be fast-paced. This is particularly relevant as regards the use of new cloud technology, and consequently the Group will continue to develop its products so they can interface with the latest technology and, if suitable, acquire selective companies that would facilitate this further.

ServicePower Technologies Plc

Strategic Review (continued)

_________________________________________________________________________________________

Commercial risks and uncertainties (continued)

Competition: The Group keeps up to date on the business activities of all existing major competitors in its markets as well as identifying new entrants who may potentially gain a foothold in the market. The Group ensures its pricing structure is competitive when faced with competition for new business and has an account management programme in place to ensure existing business is protected from competitors.

This report was approved by the board of directors and is signed on its behalf by:

Marne Martin, CEO 5 April 2016

ServicePower Technologies Plc

All amounts relate to continuing activities.

ServicePower Technologies Plc

ServicePower Technologies plc

ServicePower Technologies Plc

ServicePower Technologies Plc

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

_________________________________________________________________________________________

1 General information

The financial information included in this preliminary announcement has been extracted from the audited annual financial statements of the group for the years ended 31 December 2015 and 2014. Those financial statements have been prepared in accordance with IFRS as adopted by the European Union.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The group expects to publish full financial statements to comply with IFRSs in April 2016.

Going concern

A significant portion of cash receipts comes from the sale of large software licences and support and maintenance agreements. The signing of contracts by large corporate customers can be difficult to predict due to long procurement cycles and therefore there is uncertainty in forecasting the timing and quantum of cash receipts from these customers. which ultimately led to the loss incurred in the current year. The financial results for 2015 represent growth in licenses and SaaS contracts, with increased investment in R&D and associated overheads leading to a loss for the year.

At 31 December 2015 the Group had net assets of £2.4 million including £1.4 million of cash and cash equivalents (31 December 2014: net assets of £2.4 million including £2.7 million of cash and cash equivalents). During the year the company redeemed in full its convertible loan notes, with the majority converted to shares and a cash element of £0.2 million paid to a loan note holder.

In determining whether the Group's financial statements can be prepared on the going concern basis, the directors considered the Group's business activities together with factors likely to affect its future development, performance and its financial position including cash flows, liquidity position and the principal risks and uncertainties relating to its business activities. In performing these reviews, the directors have taken account of uncertainties around cash flow timing, repayment of short term loans and the ability to make savings initiatives to mitigate foreseeable downside scenarios. Taking these into account, the Group should still be able to cover its costs should these scenarios arise.

Based on cash flow forecasts which take into account the directors' best estimate of current sales orders and opportunities, expenditure forecasts as well as the Group's current cash balance, the directors consider it appropriate to prepare the Group's financial statements on the going concern basis.

2 Revenue

An analysis of the Group's revenue is as follows:

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

______________________________________________________________________________________

3 Business segments

Segment information reported externally is analysed on the basis of the Group's business streams, namely ServiceScheduling software licences, which provide scheduling solutions, and ServiceOperations, which provides claims and despatch processing in the consumer electronics market.

Segment information about these businesses is presented below:

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

_________________________________________________________________________________________

3 Business segments (continued)

Segment profit represent the profit earned by each segment without allocation of central administration costs, including directors' salaries, investment revenue and finance costs and income tax expense. This is the measure reported to the Group's Chief Executive for the purpose of resource allocation and assessment of segment performance.

Segment assets

For the purposes of monitoring segment performance and allocating resources between segments the Group's Chief Executive monitors the tangible, intangible and financial assets attributable to each segment. All assets are allocated to reportable segments with the exception of cash and cash equivalents and trade and other receivables of the parent company.

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

______________________________________________________________________________

3 Business segments (continued)

Other segment information

The Group's revenues from its major products and services were as follows:

Geographical information

The Group's operations are located in the United States of America, the United Kingdom and the rest of Europe. The Group's revenue from external customers and information about its segment assets by geographical location are detailed below irrespective of the origin of the services:

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

_________________________________________________________________________________________

4 Loss before taxation

Loss before taxation has been arrived at after charging/(crediting):

Amounts payable to Deloitte LLP and their associates by the Group in respect of non-audit services were £15,000 (2014: £9,000).

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

_________________________________________________________________________________________

5 Taxation

Corporation tax is calculated at 20.25% (2014: 21.49%) of the estimated assessable loss for the year.

The credit for the year can be reconciled to the loss per the income statement as follows:

At the balance sheet date, the group has unused tax losses of £19.3 million (2014: £16.9 million) available for offset against future profits. A deferred tax asset has been recognised in respect of £0.7 million (2014: nil) of such losses. No deferred tax asset has been recognised in respect of the remaining £18.6 million (2014: £19.3 million) as it is not considered probable that there will be future taxable profits available.

No deferred tax asset has been recognised on the basis of the uncertainty of the timing of new licence contracts, particularly given the long procurement processes for new licence agreements. In the opinion of the directors there is not sufficient evidence that the asset would be recoverable in the foreseeable future.

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

___________________________________________________________________________________

6 Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

Loss

Number of shares

Loss per share

Share warrant issued in 2012 (which expired in 2013) have an anti-dilutive effect and therefore diluted loss per share are capped at basic loss per share.

7 Financial assets

Trade and other receivables

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

_____________________________________________________________________________________

7 Financial assets (continued)

The average credit period taken on sales of goods is 42 days (2014: 36 days). No interest is charged on overdue receivables. The Group has provided fully for receivables it considers to be not recoverable based on historical default experience.

Before accepting any new customer the Group assesses the customer's credit status and reviews on a regular basis thereafter their ability to pay to terms.

Included within other receivables is a performance bond with a customer for £nil (2014: £26,746).

Of the trade receivables balance at the end of the year, £192,056 (2014: £187,862) is due from one of the Group's largest customers. There are 3 (2014: 3) other customers who represent more than 27 per cent (2014: 30 per cent) of the total balance of trade receivables.

Included in the Group's trade receivable balance are debtors with a carrying amount of £874,137 (2014: £572,068) which are past due but not impaired at the reporting date. The Group regards all amounts as recoverable as there has not been a significant change in credit quality. The Group does not hold any collateral over any of these balances. On average past due receivables are 23 days overdue (2014: 9 days).

Ageing of past due but not impaired receivables

Movement in the allowance for doubtful debts

The allowance for doubtful receivables relates to balances which are all past due by greater than 90 days. In determining the recoverability of a trade receivable the Group considers any change in the credit quality of the receivable from the date credit was initially granted up to the reporting date.

The directors consider that the carrying amount of trade and other receivables is approximately equal to fair value.

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

7 Financial assets (continued)

Bank balances and cash comprise cash held by the Group, short-term bank deposits with an original maturity of three months or less and letters of credit issued to third parties as guarantees of £72,113 (2014: £66,739). The carrying amount of these assets approximates their fair value.

8 Financial liabilities

Trade and other payables

Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases is 75 days (2014: 67 days). The directors consider that the carrying amount of trade payables approximates to their fair value.

In 2008 the convertible loan notes were issued giving the investors the right to convert the loan note at the lower of 5 pence a share or the price paid for the new shares issued in the fundraising. The loan note would incur interest at 8%, which would compound every six months and roll up into the value of the note. The accounting treatment for the convertible loan notes is prescribed in IAS 39. The Company did not elect to use the fair value option for this instrument on initial recognition.

During the year the company redeemed in full its convertible loan notes, with the majority converted to shares and a cash element of £0.2m paid to a loan note holder.

ServicePower Technologies Plc

Financial information for the year ended 31 December 2015

___________________________________________________________________________________

9 Note to the cash flow statement

10 Non-statutory information

The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 December 2015 or 2014 but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2014 will be delivered following the Company's annual general meeting. The auditors have reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498 (2) or (3) Companies Act 2006.