Servelec Group Regulatory News (SERV)

20 January 2015

Servelec Group PLC

("Servelec" or the "Company")

Post year end trading update

The Board of Servelec Group plc is pleased to announce a trading update for the year ended 31 December 2014.

Group

Servelec has continued the good progress and momentum it has reported to date, and the full year results will be in line with the market's expectations.

Healthcare

The Healthcare division saw a continuation of the positive tender activity reported earlier in the year. Our success rate in the London refresh was excellent and is a testament to the strength of the RiO product suite and Servelec's ability to deliver to and support our direct customers.  At the end of 2014 we had won 17 tenders in the London refresh, and a further three tenders in other parts of the country, creating a strong order book for 2015.

The integration of Corelogic, which we acquired in December 2014, has commenced and we are pleased with how this is progressing. Corelogic joins our Healthcare Division, now renamed Health & Social Care and supports our Group strategy of driving market share growth in our existing areas while looking to expand into adjacent, complementary markets. We welcome Kevin Moorhouse, Executive Director of Corelogic, to our senior management team.

Automation

We are further strengthening our senior management team in Controls to drive growth in the Power sector. Alex Moore will be joining in February 2015, as Managing Director of our Power business, from Nuclear Engineering Services and previously, Capula. This change will enable Kevan Jones and his team to concentrate on the changing Oil & Gas market as the falling price of oil enhances the need for further cost reduction programmes provided by increased automation.

In Technologies, the integration of Semaphore, acquired in October 2013, has progressed very well, leading to significant contribution in the year. In the UK, we are positioned ready for the next water industry spending programme (Asset Management Period 6) which begins in April, following a number of successful pilots run with existing customers. Outside the UK, our productised offering is gaining traction through our global distribution network.

Alan Stubbs, Chief Executive, commented,

"We are delighted to have completed our first full year of trading in line with market expectations for the business. The Group has produced a good financial performance in its maiden year as a listed business and made important operational strides forward.

The outlook for our markets remains encouraging and we start 2015 with a clear strategy for growth. The recent acquisition of Corelogic delivers new potential for our Health & Social Care division, with our market leading positions in Mental and Community Health and Social Care providing us with a strong position from which to deliver integrated solutions that match market demand.

The Board is also confident about the scale of the opportunities for the Automation division and the further strengthening of our senior management team in this division will enable us to target new opportunities, both at home and internationally, maximising opportunities provided by our global distribution network."

The Company anticipates releasing its preliminary results for the year ended 31 December 2014 on 11 March 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 divisions; Servelec Health & Social Care and Servelec Automation:

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