Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

ServicePower eyes cross-selling opportunities as momentum builds

“We want to tie our products together because there is demand from customers to use multiple products from the product suite.” says chief executive Marne Martin.
ServicePower eyes cross-selling opportunities as momentum builds

ServicePower’s (LON:SVR) Marne Martin sees significant cross-selling opportunities as the group looks to build on the progress made last year.

The recent trading statement revealed the scheduling and field management specialist boosted revenues by 25% to £14mln in 2013, is sitting on cash and will post a modest operating profit for 2013.  

This is a solid base, although there are opportunities to kick on from there, according to Martin, the former chief financial officer of the company who took over as chief executive in late July, 2013.

The group has announced a steady stream of new contract wins; however, there are self-help opportunities, such as selling more of its products to existing customers.

At the same time the emerging market created by machine-to-machine technology is tailor-made for ServicePower.

“The previous strategy was focused on acquisition,” Martin told Proactive Investors. 

“I have always felt you have to take care of your own brand first. 

“Plum acquisitions are great. The mobility acquisition was great; we got a gain on that.

“But now we have focus on what we do; to retool our go-to-market capabilities top to bottom, make sure our existing customers are happy and then ensure we are winning new customers.

“We want to tie our products together because there is demand from customers to use multiple products from the product suite.”

At its very kernel, what the ServicePower does is simple: it gets contractors or paid employees to the right job at the right time with the correct part.

If it does all of those things seamlessly, a repair job can be completed correctly first time – which is the Holy Grail of field service. 

The company provides its “software enabled services” to larger retailers, manufacturers and insurers.

Its core offerings can be distilled down to scheduling, dispatch and warranty claims.

“The dispatch product is really unique,” Martin told Proactive Investors.

“Our main competitors in the scheduling world don’t even look at how you dispatch and manage contractors.

“This is a huge competitive advantage for us; it is an area that is rapidly growing and will continue to.

“Warranty claims admin is a solid area where don’t have much competition and we will look at what else we can do there.”

Currently, the majority of its customers use just one product so the opportunity lies in plugging them into others.

The newly revamped business now has a client service team, made up of some of the company’s most experienced members of staff, which is able to help “maximize, optimize and configure” systems for customers.

This leaves the sales team free to generate new business.

One opportunity that could be significant is the machine-to-machine market. Most people have seen fridges that tell you when they are out of ice, but the true worth of the technology is in industry, where M2M’s introduction within large plants and factories could revolutionise fault recognition and repair. 

Advances such as M2M technology allow for potential faults to be spotted before they occur.

The key is being able to interpret the welter of data as it flows through and being able to prioritise the workflows.

ServicePower’s platforms are able to do just that. Like doctors and paramedics at the scene of a major accident, it is able to carry out its form of triage.

But rather than sorting out patients into urgent and non-urgent, ServicePower classifies jobs along the same lines and dispatches field engineers at the optimum time to repair faults or change out parts.

Martin calls this business logic triage. “It is really revolutionary,” she said.

“And we are only company fit to do that. We are the only company that can schedule an employed workforce as well as contracted workforces in a unified way.”

This capability then leads on to a concept called preventative maintenance – when a part can be changed out before it goes wrong. As they say in medical circles, prevention is better than cure …

Small savings in downtime caused by breakdowns translate into huge potential savings where physical assets are concerned.

“For many of the big companies even a 1% change in first time fix or using predictive intelligence is millions of dollars,” explained Martin.

“Ultimately what differentiates our software is the ability to optimise costs.” 

There is a major untapped market for these services, which explains why the group is keen to forge alliances with businesses at the cutting edge of M2M and customer relationship management software.

The shares have surged almost 50% in the last six months, suggesting investors are buying into Martin’s vision.

Yet that still only values the business at £13mln, or less than a year’s turnover, suggesting the stock has further to travel.

View full SVR profile View Profile

ServicePower Technologies Plc Timeline

November 10 2016

Related Articles

Big lorry
August 25 2018
"Trains, planes and automobiles" - it's the name of a classic John Hughes film but it might also be a good title for the story of Seeing Machines
The Internet of Things
April 30 2018
Richard Kilsby, the non-executive chairman of Telit, said that the early signs of changes made, especially to the group's activities and cost base, have led to positive operational progress since the beginning of 2018
August 20 2018
One of the orders will be fulfilled over the next 18 months, the other over the current financial year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use