News Column

Servelec Proposes Maiden Interim Dividend On Positive Outlook

August 28, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Servelec Group PLC Thursday expressed optimism for its future prospects as it proposed a maiden interim dividend for the half-year to the end of June.

The software, hardware and services company proposed a maiden interim dividend of 1.5 pence per share.

Servelec posted a pretax profit of GBP4.4 million, flat on the previous year, despite seeing revenue rise to GBP25 million from GBP19.3 million, although this was offset by a higher cost of sales, and administrative costs due to the company's acquisition of Semaphore just before its initial public offering, it said.

In the company's Healthcare division, revenue rose to GBP7.4 million from GBP7.0 million, boosted by project wins offsetting the wind down of a contract with BT Group PLC.

In Automation revenue rose to GBP17.6 million from GBP12.3 million, boosted by the company's acquisition of Sempahore Ltd. Within this segment, controls revenue declined to GBP7.2 million from GBP7.5 million, as two projects were delayed into the fourth quarter of the year, said the company, although this was mostly offset by other project wins, and technologies revenue rose to GBP10.4 million from GBP4.8 million due to the integration of Semaphore and Tynemarch Systems Engineering Ltd.

Servelec said it enters the second-half of 2014 in a strong position, with its healthcare division underpinning its performance so far, expected to continue into the start of 2015.

Shares in Servelec were trading up 1.2% at 264.70 pence Thursday morning.

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Source: Alliance News

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