Unaudited Interim Results

SERVOCA Plc

("Servoca" or the "Group")

Specialist Outsourcing and Recruitment Solutions Provider

Unaudited Interim Results

For the six months ended 31 March 2014

Highlights

· Revenue £22.39m (H1 2013: £21.47m)

· Gross profit £6.28m (H1 2013: £5.80m)

· Profit before taxation* up 86% to £0.41m (H1 2013: £0.22m)

· Strong growth in recruitment operations with Education businesses continuing to perform particularly well

· Significant improvement in the performance of our Nursing businesses

· Net Debt £2.91m (March 2013: £2.92m, September 2013: £3.07m)

· Basic EPS of 0.28p before share based payment and amortization charges (H1 2013: 0.14p)

*excluding share based payments andamortisation

Andy Church, CEO, commented:-

"We are pleased with a strong start to the year with a clear focus on profitability. The transformation in the performance of the Group established in the prior year has continued in the first half of this year and momentum remains positive.

Our Education and Nursing recruitment operations are performing well and carry good momentum into the second half of the year. Full year profitability is expected to significantly benefit from the pivotal September period for our Education businesses.

There has been a positive change to market conditions over the last year and our business has a strong platform for future growth."

For further enquiries:

Servoca Plc

Andrew Church, CEO 020 7747 3030

finnCap Ltd

Geoff Nash /Ben Thompson 020 7220 0500

Elizabeth Johnson (corporate broking)

Newgate Threadneedle

Graham Herring / Robyn McConnachie 020 7653 9850

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 2014 we are pleased to report continued improvement in the performance of the Group with revenue, gross profit and profit before tax all increased over the same period last year.

As indicated in our statement for the year ended 30 September 2013, last year saw a transformation in the profitability of the Group and our performance over the first half of this year has shown further improvement.

Growth has been led by our recruitment operations where our Education businesses continue to perform particularly well and have made the most impact on progress. We have also seen a significant improvement in the performance of our Nursing businesses.

Increased revenue and gross profit has helped profit before tax to broadly double over the same period last year.

Financial review

During the six months to 31 March 2014, revenues were £22.39m (H1 2013: £21.47m), an increase of 4.3%, which resulted in a gross profit of £6.28m (£5.80m in the six months to 31 March 2013), an increase of 8.5%.

Administrative expenses (before amortisation and share based payments) for the current period were £5.84m (H1 2013: £5.54m), an increase of 5.4%.

The profit before tax, (excluding share based payments and amortisation) increased to £0.41m

(H1 2013: £0.22m), an increase of 86%.

Basic earnings per share for the period to 31 March 2014 were 0.28p (H1 2013: 0.14p).

Net debt at 31 March 2014 was £2.91m (March 2013: £2.92m).

Operational highlights

Strategy and delivery

The focus in the period has remained on the development of the Group's capabilities in those areas that the Board believes will afford good growth opportunities.

Outsourcing

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

In our statement for the year ended 30 September 2013 we reported that in our Domiciliary Care business, revenues and gross profits had stabilised and profitability was much improved from the prior year. We are pleased that this progress has continued and profitability during the first half of this year was improved over the same period last year.

Our Security business has seen a reduction to its revenues and profitability over the same period last year because the Manned Guarding sector continues to experience gross margin pressures. However, our strategy is to build Electronic Security and Event Security offerings which have strong gross margins and the second half will see the benefits of a significant volume of work at the Commonwealth Games which commence in July.

Recruitment

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

Our Education businesses continued to build upon the momentum established during the prior financial year to deliver another strong performance in the first half of this year. Revenue, gross profit and operating profit were all significantly higher than the six months ended 31 March 2013. We continued to invest in increasing sales headcount and improving internal capabilities, including strengthening the senior management team.

As reported in our statement for the year ended 30 September 2013, our Healthcare businesses saw a material improvement in profitability following previous action to reduce overheads. We also reported that there were encouraging signs of improvement in performance in the second half of last year and we are pleased to confirm that this has accelerated during the first half of this year. Performance is significantly improved in our Nursing businesses and this is reflected in a strong increase in profitability across all measures.

Our Police business delivered another solid performance with revenues and operating profit improved over the same period in the prior year though the business has experienced increased margin pressure.

Outlook

The transformation in the performance of the Group established in the prior year has continued in the first half of this year and momentum remains positive looking ahead.

Our Education and Nursing recruitment operations have benefited from improved market conditions and are performing well and carry good momentum into the second half of the year. Full year profitability is expected to significantly benefit from the pivotal September period for our Education businesses.

The Board remains confident in its expectations for the full year.

Bob Morton Andrew Church

Chairman Chief Executive Officer

4 June 2014 4 June 2014

Consolidated statement of comprehensive income

For the six months ended 31 March 2014

Consolidated statement of financial position

At 31 March 2014

Consolidated statement of changes in equity

For the six months ended 31 March 2014

Consolidated statement of cash flows

For the six months ended 31 March 2014

Notes forming part of the financial information

For the six months ended 31 March 2014

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 2014. The comparative interim results are those for the six months ended 31 March 2013. The comparative year end's results are for the year ended 30 September 2013.

2 Going concern

The directors have prepared trading and cash flow forecasts for the period to 30 September 2015 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 2014 does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006.

The financial information for the periods ended 31 March 2014 and 31 March 2013 are unaudited. The comparative figures for the year ended 30 September 2013 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 2013 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, 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 2014 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

The Company acquired 150,613 of its own shares in the period. The total amount paid to acquire the shares, net of income tax, was £12,412 and has been deducted from retained earnings within shareholders' equity. The shares are held as 'treasury shares'. The company has the right to re-issue these shares at a later date.

9 Cash and cash equivalents

10 Net debt