Servelec Group Regulatory News (SERV)

6 April 2017

Servelec Group PLC

("Servelec" or the "Group")

Clarification on Servelec Remuneration Policy

Servelec Group plc wishes to provide additional clarification on the Remuneration Policy detailed in its Annual Report and Accounts in order to guide shareholders on what their vote refers to in respect of resolution three at the forthcoming Annual General Meeting.

As referenced in the Remuneration Report on p60 of the Group's Annual Report and Accounts, the Remuneration Policy on p62 of the Annual Report and Accounts should say:

1. in the row headed "Long-Term Incentive Plan (LTIP)" and in the column headed "Potential remuneration", and in place of the first sentence:

"The Remuneration Committee would in normal circumstances expect to award LTIPs annually at a 100% of base salary with a maximum of 200% (rising to 300% in exceptional circumstances)."; and

2. in the row headed "Long-Term Incentive Plan (LTIP)" and in the column headed "Potential remuneration", and in place of the first sentence:

"The Remuneration Committee intends to award LTIP's of 150% of base salary to the Executive Directors in the six weeks following the results announcement in line with the scheme rules."

As such, it is proposed to amend resolution three at the forthcoming Annual General Meeting to reflect this change in meaning. Going forward, the Remuneration Policy will ensure that the incentive structure continues to support the objective of building on the growth in shareholder value that has already been achieved since IPO. This 150% is below the maximum permitted award of 200% under the plan rules but was not stated specifically in the previously approved Remuneration Policy.

Annual General Meeting

The Group's Annual General Meeting will take place on Wednesday 26 April 2016 at 9.30am, at the offices of Investec, 2 Gresham Street, London, EC2V 7QN. The chairmen of the Board's committees will be present to answer questions put to them by shareholders. The Notice of the Annual General Meeting is available on the Group's website at https://www.servelec-group.com/investor-relations/shareholder-information/ 

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Notes to Editors:

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

Servelec has two operating divisions; Servelec HSC and Servelec Automation:

- Servelec HSC specialises in the design, development and implementation of Electronic Patient Record (EPR) and Patient Administration Systems (PAS), Social Care Case Management software and early Years education software within secondary care and social care and education in local government settings and is a market leader in the Mental Health, Community Health and Social Care 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.