Servelec soars thanks to strong order book

Software firm Servelec said it has a strong order book for 2015 following successful tenders in its health and social care division.

The Sheffield-based firm, which has been one of Yorkshire’s star IPO performers since its float at the end of 2013, said 2014 results reflected a good financial performance.

It added that positive momentum across the group gives it confidence for the outlook for 2015 and beyond.

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Annual revenue rose 23 per cent to £51.8m in the year to December 31, driven by good performances across its health and social care and automation divisions. Pre-tax profit fell three per cent to £10.6m due to increased share-based payments and increased amortisation.

​Servelec’s chief executive ​​Alan Stubbs said the purchase of ​Corelogic, a leading software provider to the adult and children’s UK social care market, for £23.5m last year had proved to be a good decision.

The group is now on the look-out for other acquisitions and would be willing to spend around £15m to £22m. Key areas could include maternity and operating theatre systems.

The group proposed a final dividend of 3p per share, giving a full year dividend of 4.5p a share.

The firm increased staff numbers in Sheffield by 50 to 300 last year and it will look to add another 50 employees this year.