Q3 2014 Trading Statement

11 November 2014

Servelec Group plc

Servelec Group plc continues to perform in-line with expectations for the full year with a positive outlook for 2015

The Board of Servelec Group plc ("Servelec" or the "Company") is pleased to publish a trading update for the nine months to 30 September 2014.

Group

The Group continues to perform in-line with market expectations for the full year in terms of revenue, profit and cash generation.

Healthcare

Servelec Healthcare enjoyed healthy trading during the period and have now been awarded preferred bidder status on a total of seventeen Trusts as part of the London Refresh. We continue to see these convert to order entry. The first Trust to take Open RiO (non-BT version) as part of the London Refresh, West London Mental Health Trust, went live on time and on budget in July. Additionally we are experiencing a better than expected take up of our hosting option.

During the fourth quarter there will be increased activity in relation to the Northern Renewal Programme and Acute market and we anticipate the outcomes of these tenders to be start reaching preferred bidder status during 2015.

Automation

The integration of the Tynemarch and Semaphore businesses into our Technologies division is on plan and we realised improved performance from Semaphore during the period, contributing to an overall improvement in net margin. We are strengthening our sales force in order to maximise the opportunities from our increasing pipeline of business.

We are very confident about the long term growth drivers in the Automation market and are currently seeing a growing pipeline with further orders anticipated in the final quarter. Pilots within the UK water industry are performing well, giving increased assurance to our Technologies business and we continue to progress opportunities with the oil and gas industry for the application of our expertise to extend the life of North Sea assets.

Financial position

The Company is in a strong financial position with significant increases in orders against the corresponding Q3 YTD position in the prior year and strong cash conversion. Outlook for the full year is consistent with market expectations in terms of revenue, profit and cash generation.

Alan Stubbs, CEO of Servelec Group, said: "A solid performance in the third quarter places us well to reach full year 2014 targets and demonstrates the consistency of our business, based on quality product offerings and the strong positions we have in each of our chosen markets.

The wins we continue to achieve and the integration work we have undertaken in 2014 create a strong foundation for growth in future years. This will enable us to capitalise on opportunities in front of both of our divisions' pushing into new areas such as the Acute health market, and developing opportunities through our global distribution network in Automation."

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Notes to Editors

Servelec Group plc is a UK-based technology group, with significant intellectual property, providing software, hardware and services predominantly to the UK healthcare, oil & gas, nuclear, power, water, utilities and broadcast sectors.

Servelec has two operating segments; Servelec Healthcare and Servelec Automation:

- Servelec Healthcare specialises in the design, development and implementation of Electronic Patient Record (EPR) and Patient Administration Systems (PAS) within secondary care settings and is a market leader in the Mental Health and Community Health sectors in England.

- Servelec Automation provides complex, mission-critical control systems to large blue-chip companies mainly in the UK, focusing on the oil & gas, nuclear, power, water, utilities and broadcast industries. Servelec Automation also provides services from consultancy through to design, implementation, delivery, installation and on-going customer support and maintenance.