Servoca is an established recruitment (89% of EBITA) and outsourcing (11%) business. It has a focus on temporary staffing (c.90% of gross profit) in regulated end markets (education and healthcare being the largest) where spending is non-discretionary. It has a strong bias towards the public sector. The Group's diversified business mix has delivered a resilient performance. Over the past two years, it has achieved a PBT CAGR of 14% through both organic growth and acquisitions. FY’17 results confirmed further growth, with PBT up 11% to £3.9m, c.5% ahead of consensus expectations. We are forecasting continued growth, with PBT increasing 3%/10% in FY’18/’19. Trading on an FY’18 P/E of 9x (with no debt), we believe Servoca is attractively valued relative to peers (12x), with a margin profile that compares favourably.