Servelec Group Plc. October 2016 Alan Stubbs, Chief Executive Officer Mike Cane, Chief Financial Officer.

Transcription

1 Servelec Group Plc October 2016 Alan Stubbs, Chief Executive Officer Mike Cane, Chief Financial Officer

2 1 Servelec Group Overview 57 employees 328 employees 280 employees Health & Social Care Proprietary Software Systems, Support & Hosting Proprietary Hardware, Software & Control Systems Mental, Community and Child Health Social Care Oil & Gas Water Acute Finance Power & Nuclear Broadcast Education Utilities

3 2 Investment Proposition Servelec is a UK-headquartered technology group, with significant intellectual property, providing software, hardware and services globally. High recurring revenues and high margin repeat business. Diversity of end markets and offerings provide balanced portfolio and mitigates risk. Organic growth is driven by legislative change and efficiency savings in end markets. Bolt-on acquisitions where beneficial to provide further growth. Near Term Growth Drivers Health & Social Care Legislation in Social Care driving system refresh. Opportunities in local markets (Scotland, Ireland, Wales). Opex reduction and brownfield refurbishment driving control system spend Current water industry investment cycle (AMP6) gaining momentum Acceleration in global product sales.

4 3 Servelec Health & Social Care: Our Proprietary Products NHS Local Government Acute Non-Acute Social Care Education * Oceano: Modern Patient Administration System /Electronic Patient Record Flow: Manages Patient tracking in hospitals PICS: eprescribing and Clinical Decision support Market leading Electronic Patient Record for Mental Health, Community and Child Health Fully integrated Social Care case management software encompassing: Children s Adults Finance A practical, clear and reliable way of managing critical information around the education and safeguarding of children *JV with University Hospital Birmingham (UHB)

5 4 Servelec Healthcare: Market Landscape Product Market(s) Served Mental Health Community Health Child Health Market Share Cumulative value of potential new contracts coming to market during next five years Competitors 49% 50m TPP, Emis, ACS, Civica Acute Acute New market entrant New market entrant 520m Allscripts, CSC, System C, IMS Maxims, InterSystems, Emis Ascribe 70m Hospedia, Vitalpac, Realtime, Patienttrack Acute New market entrant 50m JAC, Emis Ascribe To capitalise on future market opportunities: Investment in sales team Investment in further product development Excellent customer service through delivery and ongoing support

6 5 Social Care and Education: Market Landscape Product Market(s) Served Market Share Cumulative value of potential new contracts coming to market during next five years Local Government & Social Care 28% (combined) Competitors 100m Liquidlogic, OLM, Northgate Local Government & Social Care Local Government & Education 28% (combined) (Included in Mosaic) OLM, Northgate, OCC, CACI, In-house solutions 30% 50m Capita, CACI, Liquidlogic Current Position: Social Care 50% Current Position: Education Combined market position of products across Adults, Children s and Finance 10% Rest of market 25% 28% 30% 15% 18% 50% 60% 15%

7 6 Servelec Automation Best-of-Breed Systems Integrator Proprietary IP (Hardware and Software) and System Integration Systems Typical contract values Systems Typical contract values Production Control Systems ("PCS") 1m - 5m Safety systems 0.5m - 5m Emergency shut down ( ESD ) Fire and Gas detection ( F&G ) Telemetry systems (Utility) Regional control Scope5 software Remote Telemetry Units ("RTUs") 1k / unit Business Optimisation Software 1m upwards plus ongoing maintenance 50k+ plus share of savings 2015 Revenue Split across Automation 2015 Operating Profit Split across Automation Controls Technologies

8 7 Servelec Controls (Oil and Gas) Addressable Market Upstream Oil and Gas Addressable core market 200m per annum Midstream / Downstream & Infrastructure Addressable market 100m per annum Significant potential strategy in place to increase market share by 2020

9 8 Oil and Gas Remote Operation and Monitoring Solution Key Benefits:: Reducing use and costs of helicopters Reduction in labour and insurance costs Transferring life support equipment Removing all redundant plant Reduced logistics costs Reducing intervention times Automating production and monitoring from onshore ensures UKCS viability

10 9 Power & Nuclear: Addressable Market & Competitive Landscape Pre-2015: Focus on decommissioning : realising full potential of new & existing clients and new markets, focus on nuclear, power and defence. Total market value ~ 10bn in 2016 Decommissioning Addressable market 75m pa Defence Addressable market 50m pa Power Addressable market 50m pa Competitive Landscape: Highly regulated Significant barriers to entry Value and safety driven OJEU procurement rules Infrastructure Addressable market 25m pa Addressable market: 50m per annum Addressable market: 200m pa Significant untapped potential growth underpinned by market opportunity

11 10 Servelec Technologies: End-to-end data acquisition and control

12 11 Servelec Technologies: Current Market Positioning Product Market Sectors Market Share Cumulative value of potential new contracts coming to market during next five years RTUs Global RTUs UK SCADA / Telemetry Business Optimisation Optimiser Transportation, Broadcast, Telecomms, Water Water Broadcast Water Transportation Energy Water Competitors 0.01% 5bn Schneider Rockwell Siemens Moxa 30% 34m (RTUs) 30m (loggers) 30% 80m UK 100bn - globally Creating the market 70m - UK Creating the market globally Schneider (RTUs) Technolog (loggers) Metasphere (loggers) Schneider Siemens Rockwell Honeywell Takadu Decerto SEAMS Global RTU Sales AMP6 spend increasing Expanding customer base Opex reduction Entry into new markets Actively selling products through distribution channels Remote operations

13 12 Servelec Technologies: Channel Development Focus

14 13 Key Financial Highlights 2015 by Division Revenue Operating Profit* (Excluding central costs) Order Entry Health & Social Care Controls Technologies

15 14 Servelec Group at H H Results Summary 28.4m -5% (H1 2015: 30.0m) 37.4m -15% (H1 2015: 44.1m) 4.5m -28% (H1 2015: 6.3m) 38% 168% (H1 2015)

16 15 Outlook Revised outlook on track in 2016 with a return to growth in 2017 System refresh in Social Care market drives market share gains Digital Maturity agenda driving Healthcare market along with opportunities in local markets Lower for longer oil price focuses customers on Opex reduction in which we have forty years experience Power & Nuclear continuing to expand in target markets Global RTU sales strong, AMP6 pent up demand shows signs of unlocking in 2017 Expect to capitalise on market opportunities enabling us to return to growth

17 Additional Slides

18 (a) Key Milestones 2013 Successful IPO on main market 1977 Servelec commenced operations and then grew out of control systems in Sheffield steel 1993 Entered healthcare market (with Intehealth from New Zealand) 2000 Servelec acquired by CSE Global of Singapore 2006 Healthcare commences contract with BT under NPfIT to provide systems to up to 41 Mental Health and Community Health Providers 2010 Servelec acquired Systems Integration & Automation Ltd 2014 Launched Optimiser & Flowsure 2014 Acquired Corelogic 2016 Acquired Abacus 2016 Acquired Synergy First Telemetry System: SCOPE1 First RTUs Developing IPR 1988 Acquired by Portals Part of Portals Computer Technology 1995 Portals acquired by De La Rue; Management Buy-Out of Servelec backed by 3i 2001 RiO launched 2006 Servelec acquired Scomagg 2008 Current divisional structure implemented: Servelec Healthcare and Servelec Automation 2013 Servelec acquired Tynemarch UK Servelec acquired the Semaphore Group Disposal of Servelec Controls s.r.o 2015 Acquired Aura 2015 Exited NPfIT 2015 Launched S2000 nano

19 (b) Servelec Controls Bespoke Solutions Delivering mission-critical control systems for national Infrastructure Feed T&M Fixed Price in-house work Site T&M Recurring revenues