Servelec has ‘positive’ outlook for 2016 as it focuses on growth

Servelec Group chief executive officer Alan Stubbs.
Servelec Group chief executive officer Alan Stubbs.
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SERVELEC, the Sheffield-based technology firm, said it had a positive outlook for 2016, after its trading last year was in line with expectations.

In a post year end trading update, the company said that Servelec Health and Social Care performed exceptionally well during 2015, compensating for a softer performance from Servelec Automation where the continued weakness in the oil and gas market held back Servelec Controls.

The company said: “Servelec finished 2015 with a strong order book, an improving pipeline and an improved cash position. The board remains confident in the outlook for the group...In health and social care, activity is expected to remain buoyant through 2016 with a strong order book.”

Servelec, which floated in 2013, said that in automation, controls activity is expected to be driven by increasing demand from oil and gas operators.

Alan Stubbs, the chief executive, said: “We are delighted to have reported another full year of trading in line with market expectations for the business.

“The group has delivered on its promises of strong and predictable financial performance, supported by its diversified business model. We finish 2015 with an improved cash position year on year and a strong order book going into 2016. We will continue on our path of growth by an appropriate mix of organic performance and acquisitions during 2016 continuing to deliver value and return for our shareholders.The board is positive about the outlook for 2016. Servelec Automation looks poised for a year of growth as delayed projects get off the ground and Health and Social Care will continue to improve on performance to date.”