Servelec Group Regulatory News (SERV)

14 May 2014

Servelec Group plc

Group continues to perform well; trading in-line with expectations, outlook remains positive

The Board of Servelec Group plc ("Servelec") is pleased to publish its interim management statement for the three months to 31 March 2014.

Group

Both the Healthcare and Automation divisions continue to trade in-line with market expectations.

Healthcare

Servelec Healthcare has enjoyed healthy trading during the period. We have been nominated as preferred bidder on the majority of the projects which have been announced across London & the South of England and also in the North. We continue to invest in our products and are seeing positive signs of early adoption of RiO v7 which will be going live in the first of the "Camden Trusts" during the third quarter of this year.

The levels of order entry in Healthcare are in-line with expectations and we are confident that our best-in-class products combined with our very strong market position means the healthcare business will continue the positive momentum.

Automation

Our business continues to trade in-line with market expectations. There has been a slight delay with a small number of the large Oil & Gas and Power capital projects with which we are involved, but those orders are still expected to come through in this financial year. These delays being offset by further consultancy work and a strong performance from Servelec Technologies. We remain very confident about the long term growth drivers, with the outlook for order entry improving.

Financial position

The company continues to be in a strong financial position with increased cash reserves as the roll out of RiO (R2) in London and the South releases the WIP which had accrued under the NPfIT contract.

Alan Stubbs, CEO of Servelec Group, said: "We are pleased with the continued progress and momentum we have shown. The Healthcare division and our Automation division have both performed in accordance with our expectation illustrating the quality of our product offering and strong market position."

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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 Group has two divisions; Servelec Healthcare and Servelec Automation:

- Servelec Healthcare specialises in the design, development and implementation of Electronic Patient Record (EPR) and Patient Administration Systems (PAS) within secondary care settings and is a market leader in the Mental Health and Community Health sectors in England. It has three key products:

o RiO - an EPR software solution for the recording and documenting the provision of healthcare services.

o Oceano - a recently developed modular PAS and EPR software system handling care management in Acute Care settings.

o PICS - a rules-based clinical decision support software system developed by University Hospitals Birmingham for use in Acute Care hospitals supporting a range of specialities in inpatient and outpatient care settings.

- 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.