Companies: SVR   

Under the leadership of Mark Duffin, who assumed the CEO's hot seat late last year, outsourced service and field management play SERVICEPower is in the midst of meaningful turnaround.

Its brief is to help clients ranging from GE to Siemens make the most efficient use of their field engineers. Given economic malaise in its key markets – North America, the UK and Europe – cost conscious clients are warming to the return on investment case of the group's services and technology, which enables them to swiftly ‘locate, schedule and route’ skilled engineers to jobs in real time.

In addition, where clients don’t have their own engineers, SERVICEPower can offer them an outsourced, white-labelled network of independent field service engineers.

‘This is a year of restructuring and redefining the business,' insists Duffin, who has already completed '95%’ of the restructuring in the US and UK, while simultaneously revitalising sales efforts.

Interim results to June illustrated the early benefits of the turnaround, with sales increased almost 60% to £8m, gross margins expanding from 39% to 53% and pre-tax losses pared back from £1.3m to £300,000.

First half contracts were won with corporate heavyweights including Bosch Tools and ‘one of the largest in-home service providers in the US’, a client as yet unnamed.

Duffin has also received the green light for a £5m placing, which will coincide with a move to AIM towards the tail end of September and underpin his ambitious growth plans. While SERVICEPower disappointed under previous management, the bombed-out shares offer a good degree of recovery upside.

ServicePower	AIM	£6.16m	3.25p	-0.50p
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