Sheffield-based software and hardware firm Servelec said its 2016 revenue fell 3% to £61 million and profit before tax fell 29% to £9.5 million as delays in procurement in a number of its markets hurt the company.

Nonetheless, Servelec proposed a full-year dividend of 5.65p, an increase of 10%.

Servelec shares fell about 4% to 279p, giving it a stock market value of just under £200 million.

Servelec CEO Alan Stubbs said: “Whilst our results are a backwards step on 2015, which was in itself an exceptional year with 32% growth over 2014, the group has nonetheless maintained CAGR (compound annual growth rate) growth of 9% since IPO.

“The step backwards is largely due to delays in procurement in a number of our markets which, unusually, occurred at the same time. 

“During 2016 the business made significant strides forward in terms of product development, acquisitions, market development and staff development.

“I am pleased with the positive signs apparent across our businesses and whilst challenges persist in some of our markets the board is confident in the future outlook for the group.

“The business is set to reap the rewards of the various investments we have made in the business during 2016 which position us well for the future; including refreshing the management team in our Controls (Oil & Gas) business, focussing sales efforts on our global distribution channel in technologies, strengthening our sales team in Servelec HSC and bringing two enviable product suites into the business; Abacus and Synergy.

“The outlook is positive for the group in 2017 with a stronger order book and improving visibility of market conditions.”