At the beginning of December, Servelec Group joined the main market of the London Stock Exchange (see Servelec joins the main party). Today – only a month since joining - sees its first post year-end trading update, and it all sounds positive highlighting a strong performance in line with the Board’s expectations.
As we previously commented this is a business of two halves, albeit one slightly larger than the other. The largest part of the Group is the Automation business, focused on mission critical control systems (57% of turnover). Servelec talks about progress in line with expectations in terms of moving from the design stage to the pricing stage with a number of customers. We assume that means they are closer to signing contracts.
Of more interest to us is the Healthcare business, through which Servelec is operating in a competitive market place offering its RiO patient record software to community and mental health organisations. Apparently sales activity is increasing. And in Camden, the company has had success with the first two Trust wins under the refresh programme.
Shareholders appear to like what they see. Servelec listed at 179p. Since then the share price has increased 32%, standing at 236p in early trading this morning.