Wednesday 02 March 2016

NEW RESEARCH: Servelec’s business of two halves

Servelec structureThe benefits of Servelec’s diversified business model are plain to see within its FY15 results (see this week’s UKHotViews). The business is now split roughly 50/50 in revenue terms between the Health & Social Care and Automation divisions - the latter including both Controls, which serves the Oil & Gas and Power & Nuclear sectors, and Technologies, which operates predominantly in the Water, Utilities and Broadcast sectors – but the fortunes of the two halves of the business could not have been more different in FY15.

This week Servelec also announced the acquisition of Synergy, a prominent supplier in Education and Children’s Services software, from Tribal for £20.25m. When combined, Servelec’s social care software, Corelogic, and Synergy enable a single view of the child, facilitating early and coordinated intervention. This has a strong strategic fit with the direction of the market and is a sound move by Servelec as it looks to further strengthen its position in the evolving Converged/Integrated Care market.

In TechMarketView’s latest UKHotViewsExtra research, we look in more detail at the performance of Servelec’s constituent parts in FY15 and consider the outlook for the business going forwards having spoken to CEO Alan Stubbs and CFO Mike Cane.  In the process, we discover Servelec has some capabilities you might not expect in IoT and cyber security and analyse the rationale for the Synergy acquisition in more detail.

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Posted by Tola Sargeant at '18:10' - Tagged: results   acquisition   education   socialcare   health