PHSC PLC
Trading Update
PHSC plc (“the Group”), a leading provider of health, safety,
hygiene and environmental consultancy services and security
solutions to the public and private sectors, announces an update on
its performance for the financial year ended 31 March 2017.
The information derives from management accounts and is subject
to audit. We expect to issue our Final Results announcement
in early August 2017 after completion
of the audit process.
Consolidated Group revenue for the year was around GBP 7.16m compared with GBP 7.04m in the previous year. The Group had the
benefit of full year revenues from the two acquisitions made in
December 2015 but this was largely
offset by reduced income from its Adamson’s Laboratory Services
Limited (ALS) subsidiary. As reported at the halfway stage, ALS has
been loss-making and this continues to be the case, albeit the
losses have gradually declined in response to management actions,
including a reduction in staff numbers at a cost of approximately
GBP 30,000 in statutory redundancy
payments.
It is encouraging that the Group saw a material improvement in
profitability in the second half of the year. At the interim stage,
the EBITDA loss was GBP 93,000.
Including the impact of the redundancy payments mentioned above, we
anticipate an EBITDA loss for the year of approximately
GBP 100,000. Last year, the
underlying EBITDA profit (calculated as earnings before interest,
tax, depreciation, amortisation, acquisition costs and exceptional
items) was GBP 368,000.
Early indications are that the comparatively strong end to the
year has continued into the first month of the current financial
year, with April 2017 anticipated to
show positive EBITDA. It is too early to quantify the goodwill
impairment which we expect will be required. This will be reviewed
by the board once the auditors have completed their work and made
their recommendations.
At the Interim stage, we stated that “if the Group does not
generate a profit for the year, it
may recommend a lower distribution
or elect to forego a dividend
entirely on this occasion” and this remains the
position. The board will consider the matter in due course.
Cash at bank at the end of the financial year was GBP 201,000 and the Group has a facility with its
bankers of GBP 300,000.
This announcement contains inside
information.
For further information please contact:
PHSC plc
Stephen King
01622 717700
Stephen.king@phsc.co.uk
www.phsc.plc.uk
Northland Capital Partners Limited (Nominated
Adviser) 0203 861 6625
Edward Hutton/David Hignell
Beaufort Securities Limited
(Broker) 020 7382 8300
Elliot Hance
About PHSC
PHSC plc, through its trading subsidiaries Personnel Health
& Safety Consultants Ltd, RSA Environmental Health Ltd,
Adamson's Laboratory Services Ltd, QCS International Ltd,
Inspection Services (UK) Ltd and Quality Leisure Management Ltd,
provides a range of health, safety, hygiene, environmental and
quality systems consultancy and training services to organisations
across the UK. B to B Links Ltd and SG Systems (UK) Ltd offer
innovative retail security solutions including tagging, labelling
and CCTV.