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Preliminary results for the year ended 31 December 2016

Servelec Group Plc

("Servelec" or the "Group") 

Preliminary results for the year ended 31 December 2016

 

Servelec Group plc ("Servelec" or the "Group") the UK-based technology group which provides software, hardware and services predominantly to the UK healthcare and social care, education, oil and gas, power and infrastructure, utilities, broadcast and rail sectors, today announces its results for the twelve months ended 31 December 2016.

 

Financial Highlights

 

2016

(£’000s)

2015

(£’000s)

% change

Revenue

60,957

63,095

(3)%

Underlying operating profit*

14,596

16,151

(10)%

Operating profit from continuing operations

9,783

13,395

(27)%

Profit before tax from continuing operations

9,515

13,364

(29%)

Order entry**

65,706

66,383

(1)%

Order bank***

74,696

65,070

15%

Cash flow from operating activities

8,422

19,591

(57)%

Cash conversion****

58%

115%

 

Net (debt) / cash

(9,558)

9,896

N/A

Fully diluted earnings per share

10.8p

16.7p

(35)%

Adjusted earnings per share*****

16.1p

18.1p

(11)%

Proposed final dividend per share

4.0p

3.5p

14%

* Underlying operating profit excludes share based payments, non-recurring items and amortisation from acquired intangibles.

** Order entry is the total contract value of revenue from an order received in the period.

*** Order bank is the total future revenue we expect from orders received.

**** Cash conversion equals cash flow from operating activities divided by underlying operating profit less non-recurring items plus amortisation of non-acquired intangible assets and depreciation of property, plant and equipment.

***** Adjusted earnings per share is underlying operating profit less finance costs and tax at 20% divided by fully diluted number of shares.

 

Operational Highlights

  • Results in line with revised expectations
  • Action taken to reallocate resources, strengthen sales and divisional management team
  • Synergy and Abacus acquisitions strengthen Social Care and Education offering in local government market and have been merged into Servelec HSC
  • Automation business recovering, especially in Q4 2016 on the back of  significant project wins
  • Improved and increasing order bank

 

Alan Stubbs, Chief Executive Officer commented:

“During 2016, Servelec made significant strides forward in terms of product development, acquisitions, market development and staff development. Whilst challenges persist I am confident in the future outlook for the Group, with a strong order book and improving market conditions.”

 

For further enquiries, please contact:

Servelec Group plc

Alan Stubbs, Chief Executive Officer

Mike Cane, Chief Financial Officer
Pamela Weeks, Head of Corporate Communications and PR

+44 (0) 1246 437 400

Investec Bank plc

Dominic Emery/Sebastian Lawrence

Patrick Robb/Matt Lewis

+44 (0) 207 597 5097

Tulchan Group

James Macey-White/Matt Low

+44 (0) 20 7353 4200

Click here, to view the full report.

Click here, to view the investor presentation

Category: investor, Servelec Group, Financial reporting, financiail results, year end, Full Year