When we tipped software company Servelec (SERV) as a 'buy' a year ago, we saw a number of positive trends developing for the company's three units: rising healthcare orders as NHS trusts exited a national procurement programme; a recovery at the technology division as the implementation of the AMP6 regulatory plan unlocked demand from water companies; and increased controls orders due to rising safety standards in the energy industry.
IC TIP:
Sell
at
227p
Well, things have not worked out like that. Servelec's shares have tanked on news that tight NHS budgets have caused order delays, AMP6 orders are not materialising as hoped and the timing of a big controls order has unexpectedly slipped.
