Servelec to add 40 jobs as latest results show healthy growth

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specialist it systems provider Servelec is planning to add 40 jobs to its 300-strong workforce, as its interim results showed strong performance following its stock market listing.

The Sheffield-based firm saw revenue climb 29% to £25m in the first half of 2014. Underlying operating profit rose 12% to £5m, while order entry surged by 82% to £29m in the six months to June.

Servelec Healthcare, which was part of the BT-managed National Programme for digital infrastructure in the NHS, saw 5% increase in revenue to £7.4m.

The company is now tendering directly with trusts as it exits the programme. Order entries rose by 87% to £9.5m in H1.

Contracts reviews in London and the south will end in October 2015, while the north of England’s 676 deployments will be retendered before July 2016.

Servelec has already delivered systems for West London, which is the first trust to leave the national programme.

Managing director Alan Stubbs said the change is “a great opportunity”. The creation of 40 new jobs in the next 18 months aim to capitalise on this.

“This will be good for Servelec, and for the city as well,” he said.

Much of the company’s 29% rise in turnover was due to the acquistion of Semaphore into its Automation division, prior to the business’ December 2013 IPO.

Organic growth was 3%, while dividends of 1.5p per share will be paid. which is in line with expectations at floatation.

“Our priorities going forward are to capitalise on opportunities in healthcare and ensure we’re able to deliver what our clients expect - that means employing the right people and delivering on time,” Mr Stubbs added.