Interim Results

SERVOCA Plc

("Servoca" or the "Group")

Specialist Outsourcing and Recruitment Solutions Provider

Interim report

For the six months ended 31 March 2013

Highlights

·; Revenue £21.47m (H1 2012: £22.25m)

·; Gross profit £5.80m (H1 2012: £6.17m)

·; Profit before taxation (excluding share based payments and amortisation) £0.22m (H1 2012: £0.10m)

·; Outsourcing revenues £8.08m (H1 2012: £8.41m)

·; Recruitment revenues £13.39m (H1 2012: £13.84m)

·; Administrative expenses before share based payments and amortisation reduced by 8% to £5.54m (H1 2012:£6.03m)

·; Net Debt £2.92m (March 2012: £2.87m, September 2012: £3.27m)

·; Basic EPS of 0.14p before share based payment and amortisation charges (H1 2012: 0.08p)

For further enquiries:

Servoca Plc

Andrew Church, CEO 020 7747 3030

finnCap Ltd

Geoff Nash /Ben Thompson 020 7220 0500

Simon Starr (corporate broking)

This document is available from the Company's website: www.servoca.com, on the "Shareholder Documents" page in the section headed "Investor Relations"

Introduction

For the six months ended 31 March 2013 the Group is pleased to report an increase in the profit before tax over the same period last year.

As indicated in our statement for the year ended 30 September 2012, strong action to reduce overheads in our Healthcare related activities last year has yielded an improvement in their profitability. Although revenues in this area have continued to come under pressure from a cut back in NHS spending, all other parts of the Group have seen an encouraging increase in turnover particularly in our Education recruitment business.

Financial review

During the six months to 31 March 2013, revenues were £21.47m (H1 2012: £22.25m) which resulted in a gross profit of £5.80m (£6.17m in the six months to 31 March 2012).

Administrative expenses (before amortisation and share based payments) for the current period were reduced to £5.54m (H1 2012: £6.02m).

The profit before tax, share based payments and amortisation increased to £0.22m (H1 2012: £0.10m).

Basic earnings per share for the period to 31 March 2012 were 0.14p (H1 2012: 0.08p).

Net debt at 31 March 2013 was £2.92m (March 2012: £2.87m).

Operational highlights

Strategy and delivery

The focus in the period has remained the development of the Group's capabilities in those areas that the Board believes will afford good growth opportunities. We continue to manage overheads tightly in those businesses faced with challenging trading conditions.

Outsourcing

Our outsourcing activities are primarily based in two areas; Domiciliary Care and Security.

The reduction in revenues and margin in our Domiciliary Care business as a result of reduced NHS spending has been stabilized during the current period. Several new contract wins with a number of local authorities, which started during the period, have increased our revenue. The measures taken to restructure overheads in the second half of last year have resulted in an improvement in profitability for the current period.

Our Security business has continued to grow its revenues over the period despite the benefit last year of one off demand related to the London Olympics. We continue to benefit from a broader service offering and sales have increased in our traditional manned guarding business. The less mature areas of event security and the supply of specialist security products to the retail industry have also grown over the period.

Recruitment

Our recruitment businesses supply into the Healthcare, Education and Police markets.

As discussed in our statement for the year ended 30 September 2012, our Healthcare businesses have been restructured to reduce overheads in the face of challenging trading conditions which have continued. The strong action taken last year has resulted in improved profitability during the current period.

In our Education operations we signaled a positive outlook at the end of the last financial year and this has been confirmed in the first half of this year. Revenues showed a healthy increase over the prior period, partly as a result of new branches opened in the thirteen months before the current period and partly from established offices. Unified management of our brands in this area has made a positive impact and we have continued to invest in improving our internal capabilities and sales headcount.

The Police business has delivered revenue growth in the period, despite a strong prior year which benefitted from Olympic related work. The business has successfully established new revenue streams from areas of the market that we had not previously supplied and continues to deliver a solid performance.

Outlook

We are seeing encouraging improvement in both trading conditions and the internal capabilities for our Education recruitment businesses, which bode well for the future.

In Healthcare, strong action taken to reduce the overhead base last year, has delivered improved profitability this year. This should continue over the remainder of the current financial year.

We have seen stability established in our Domiciliary Care business with trading in the second half of the financial year showing an improvement in both volume of hours and margin.

As a result of performance in the first half of the year, the Board remains confident in its expectations of continuing improved performance for the current year.

Bob Morton Andrew Church

Chairman Chief Executive Officer

4 June 2013 4 June 2013

Consolidated statement of comprehensive income

For the six months ended 31 March 2013

Consolidated statement of financial position

At 31 March 2013

Consolidated statement of changes in equity

For the six months ended 31 March 2013

Consolidated statement of cash flows

For the six months ended 31 March 2013

Notes forming part of the financial information

For the six months ended 31 March 2013

1 Accounting periods

The accounting reference date of the Group is 30 September. The current interim results are for the six months ended 31 March 2013. The comparative interim results are those for the six months ended 31 March 2012. The comparative year end's results are for the year ended 30 September 2012.

2 Going concern

The directors have prepared trading and cash flow forecasts for the period to 30 September 2014 which indicate adequate headroom in borrowing facilities. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

3 Financial information

The interim financial information for the six months ended 31 March 2013 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the periods ended 31 March 2013 and 31 March 2012 are unaudited. The comparative figures for the year ended 30 September 2012 are not the full statutory accounts for the period. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors have reported on those accounts; their reports were unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under Section 498 of the Companies Act 2006.

4 Basis of preparation and accounting policies

The interim financial statements have been prepared using the recognition and measurement principles of IFRS as endorsed for use in the European Union.

The accounting policies adopted in the preparation of this interim financial information are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 30 September 2012 and no new standards or interpretations that have come into effect in the interim period has a material impact on the results of the business.

5 Segmental information

The Group's format for reporting segment information is by business segment, being by type of service supplied. The operating divisions are organised and managed by reporting segment where applicable and by divisions within a reporting entity where necessary. The information presented is consistent with that used by the chief operating decision maker. All revenues are generated from external customers.

The Outsourcing segment provides services to the Domiciliary Care and Security sectors.

The Recruitment segment provides recruitment services to the Healthcare and Education and Police sectors.

[1] Unallocated includes holding company director costs, group legal costs, central share based payment charges and a share of central property costs.

6 Earnings per share

The calculation of earnings per share for the period ended 31 March 2013 is based on a weighted average number of ordinary shares in issue during the period of:

The above number of shares is used in all of the earnings per share calculations below.

Additional disclosure is also given in respect of earnings per share before share based payments and amortisation as the directors believe this gives a more accurate presentation of maintainable earnings.

7 Other financial liabilities and provisions

8 Share capital

9 Cash and cash equivalents

10 Net debt