ServicePower Technologies signs contracts worth £2.9m

Servicepower Technologies (LON:SVR), the AIM quoted group that specialises in outsourced services and field management, has signed three new contracts worth a total of £2.9 million. The deals include two contracts for the company’s ServiceScheduling software and one contract for its ServiceOperations software-as-a-service platform.

Mark Duffin, the chief executive of ServicePower, said the contract wins were evidence of the momentum ServicePower is currently experiencing in the outsourced services and field management industry. “We are delighted that two long standing customers have chosen to expand their use of our software,” he said. “We are pleased to also welcome a new customer, Steritech, which sees our entry into the food retail market. Steritech has a proven commitment to customer services and we are delighted to assisting them in meeting their customers’ expectations.”

Among the new orders, North America’s leading home appliance retailer and largest provider of home services, has signed an additional software licence, maintenance and support contract for ServiceScheduling. This one-year rolling contract will add GPS tracking into its current ServiceScheduling platform, integrating real time location based services into the decision engine to allow for the more efficient scheduling of service visits by the its engineers.

The contract win with new customer Steritech is a two-year perpetual software, maintenance and support contract for ServiceScheduling and ServiceStats. Steritech is one of the largest outsourced food safety and quality assurance companies in the US. It will use ServiceScheduling to schedule client visits by its consultants to food retail outlets across North America while ServiceStats will provide it with an in-depth view of workforce activity.

The third contract win is with Homeserve (LON:HSV), the international home emergency repairs business, which already uses ServicePower's ServiceScheduling software for the optimisation of its workforce. The new two-year contract (which includes an option for a further extension for an additional three years) extends this licence, and also includes the implementation of the ServiceOperations Software-as-a-Service platform to manage the dispatch of jobs and the payment of claims.

Mr Duffin said: “ServicePower is enjoying a growing momentum in new business, both with existing and new customers, due we believe to having one of the most complete outsourced service offerings in the market, and ServicePower continues to add to its customer base, building revenue visibility for this and future years. We believe the strength of our product set and the results we are delivering for our customers, in terms of enhanced efficiency and customer service, mean we are well placed for future growth.”

In May, ServicePower reported a “strong level of trading” in the first four months of the year. The signing of a multi-year licence and revenue share contract in February for its ServiceOperations software with one of the world's leading specialty insurance providers, Assurant Solutions, was particularly significant. In the year to December 2010, the company posted flat revenues of £18.2 million and edged a small adjusted pre-tax profit following a loss the previous year of £1.0 million. The ServicePower Technologies share price opened half a penny higher at 7.5p during trading this morning.