Procurement delays at healthcare, energy and water companies battered Servelec (SERV) in the first half of 2016. The confluence of challenges reduced the software group's organic sales by 12 per cent, driving underlying operating profits down 28 per cent to £4.5m.
Pressure on NHS budgets and the postponement of system upgrades pushed healthcare sales down 4 per cent, as hospitals and clinics refrained from buying patient management systems. Revenues tumbled 14 per cent and profits fell even further in the controls division due to depressed oil and gas activity. And technologies turnover dipped, reflecting sluggish spending on remote telemetry units (RTU) among UK water companies.