Servelec Group Regulatory News (SERV)

16 July 2015

Servelec Group PLC

("Servelec" or the "Company")

H1 Trading update

The Board of Servelec Group today publishes an update on trading for the first half of the financial year ending 31 December 2015 with results at a Group level in line with expectations.

Health & Social Care

The Health & Social Care division continues to make good progress, driven by a solid order book in healthcare, further wins in social care and increased opportunities for our Flow bed management product from recently acquired Aura Healthcare. This is evidenced by the recently announced tender success for PICs, RiO, Flow and Mosaic.

We are pleased with the successful integration of our Corelogic and Aura Healthcare acquisitions and the growth opportunities these businesses bring to our Health & Social Care division.

The management team have a clear strategy for the converged care market and we are bringing the health and social care operations closer together to maximise the joint potential of these individually successful businesses. In line with this, we are very pleased that Garry McCord, previously Delivery and Development Director for Servelec Healthcare, has taken up the role of CEO of Servelec Corelogic.

Automation

Servelec Technologies has delivered a strong result against the corresponding period of 2014 and we are well positioned for success following pilot projects in advance of AMP6. We expect tender activity to increase in the second half of the year as part of the AMP6 procurements.

The performance from Technologies has partially offset a lower result from the Controls business due to the reduced order entry previously reported for the second half of 2014, which continued into H1 2015. Following the appointment of a new senior management team in Power & Nuclear, our order bank is now recovering and we have achieved a record order entry for Power & Nuclear in the first half of the year.

In Oil & Gas we see the recently announced new contract marking the beginning of a period of further platform refurbishment to reduce OPEX being incurred by operators.

Alan Stubbs, Chief Executive, commented,

"We are pleased with progress made in the first half of the year which demonstrates the advantage of our diversified business model. Recent order entry across the Group gives us confidence for the full year and the overall outlook for the business."

Servelec Group will release its results for the six months ended 30 June 2015 on Thursday, 27 August 2015.

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Notes to Editors

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

Servelec has two operating segments; Servelec Health & Social Care and Servelec Automation:

- Servelec Health & Social Care specialises in the design, development and implementation of Electronic Patient Record (EPR), Patient Administration Systems (PAS) and Patient Flow within secondary care settings and Case Management (CM) software within Adults and Childrens social care settings. Servelec 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.