SVR.L Regulatory News (SVR)

4 August 2016

ServicePower Technologies Plc

("ServicePower" or "the Company")

Trading Update

ServicePower Technologies Plc (AIM: SVR), a market leader in mobile workforce management software, is pleased to provide an update on trading for the six month period ended 30 June 2016.

Trading for the half-year is in line with management expectations with positive momentum at the end of the period. This was driven by improved gross margin, with June being EBITDA and net income positive.

Total revenue for the six months to 30 June 2016 is expected to amount to £6.4 million (of which 98% in the period is recurring in nature), compared to £6.1 million in the previous six months and £6.9 million for the comparative period. Gross margin for the period has increased to 52% from 49% in the comparative period. Product gross margin for the period was 72%. Cash at 30 June 2016 was £0.7 million (£0.7 million at 30 June 2015).

Building on the progress made thus far in 2016, a number of new deals that were signed in the period are going live in Q3, with additional opportunities maturing in the second half of 2016. The Company also signed a number of strategic partnerships in order to strengthen its sales reach, including two new partnerships with contract revenue targets for Optimisation on Demand totally approximately £3 million.

Product innovation has progressed rapidly in the first half resulting in:

· the release of a prototype AppExchange App, 'Boost', which provides Salesforce Sales Cloud and Mobile users, especially those in non-traditional "field service" vertical such as retail sales, healthcare and financial services to optimize remote employee schedules, on demand, maximizing employee productivity and reducing schedule costs.

· the launch of ServicePower Unity, which includes all of ServicePower's mobile workforce management software components, such as route and schedule optimisation, contractor and warranty management, enterprise mobility and NEXUS FS, and business intelligence- in a single SaaS deployment.

· new features in ServiceScheduling, NEXUS FS and ServiceOperations created to support new vertical growth and provide additional business management features, such as inventory management.

· additional testing confirmation of Quantum Annealing, proving an additional 2-4% improved productivity with the new algorithm.

· new work with Manchester Metropolitan University on a rostering algorithm, to support sales force automation.

Marne Martin, CEO of Service Power Plc, commented: "ServicePower is pleased with the recent momentum that has been achieved, in terms of contract and partner execution. We've worked to create additional pipeline opportunities through new channels like Salesforce and contractually committed partners, as well as continued focus on innovating our software platform to meet market requirements. The first half of 2016 has further laid the ground work of our strategy, with further operational improvements. We look forward to increasing EBITDA in the second half of 2016."

For further information, please contact:

About ServicePower

ServicePower, the acknowledged leader in Optimization Technology, provides an innovative global, mobile workforce management software platform used by field service organizations to maximize productivity and efficiency, intelligently schedule appointments, SLA and complex jobs, as well as parts. Our platform focuses on solving the fundamental problems organisations with mobile workers face with patented routing optimization, M2M connected services, contractor and warranty management, cutting edge enterprise mobile and business management technology, robust business intelligence and asset tracking.

ServicePower is listed on the AIM market of the London Stock Exchange with the ticker SVR.L. For more information please visit http://www.servicepower.com/