Servelec’s interims results showed a welcome return to growth, but delays to AMP6 contracts in Technologies, a difficult nuclear market and a loss of momentum in social care mean we downgrade our estimates by 11-12%. More positively, the rest of the HSC division is making encouraging progress in the face of challenging market conditions. We see strategic value in this division, which should underpin the group’s valuation from here. We stay at Buy with a revised 12m TP of 280p (from 325p).
