11 August 2017
PHSC PLC
(the “Company” or the “Group”)
Final Results for
the year ended 31 March 2017
Financial Highlights
- Underlying EBITDA* loss of £0.1m, down from a profit of £0.368m
last year
- Group revenue rose to £7.16m compared with £7.04m last
year
- Cash reserves of £0.207m at year end compared to £0.256m last
year
- Write-down of £0.625m (compared to £0.609m last year) due to
impaired goodwill
- Group net assets fell to £5.52m from £6.09m after goodwill
impairment
- Loss per share of 4.92p compared with last year’s loss per
share of 3.23p
- Loss after tax of £0.691m compared with a loss of £0.414m last
year
- No final dividend proposed but interim dividend may be
considered if progress continues
*Underlying EBITDA is calculated as earnings before interest,
tax, depreciation, amortisation and acquisition costs and fair
value movements on contingent consideration.
|
2017
£ |
|
2016
£ |
Profit before tax |
(720,693) |
|
(377,723) |
Less: interest received |
(471) |
|
(1,052) |
Add: interest paid |
2,117 |
|
8 |
Add: depreciation |
44,089 |
|
47,712 |
Add: impaired ALS goodwill |
625,191 |
|
608,936 |
Acquisition costs |
- |
|
50,000 |
Fair value movement on
contingent consideration |
(50,000) |
|
- |
Underlying EBITDA |
(99,767) |
|
367,881 |
Operational highlights
- 56% of revenues were in security-related technology services
compared with 40% last year
- Ongoing rationalisation and cost reduction programme
This announcement contains inside
information.
Contact information
For further information please contact:
PHSC plc |
Stephen King |
01622 717700 |
|
stephen.king@phsc.co.uk |
|
Northland Capital Partners
Limited (Nominated Adviser) |
Edward Hutton
David Hignell |
0203 861 6625 |
Beaufort Securities Limited
(Broker) |
Elliot Hance |
020 7382 8300 |
Chief Executive’s Review
I present my review of the Group's performance over the year,
and provide an update to shareholders on the improving picture
emerging over recent months.
Key developments and outlook
PHSC plc, through its trading subsidiaries, is a leading
provider of health, safety, hygiene and environmental consultancy
services and security solutions to the public and private sectors.
From the time of incorporation and up until the end of the 2015-16
financial year, the majority of the Group’s revenue had always been
generated by its health and safety businesses. In 2016-17, for the
first time in the Group’s history, more revenues arose from the
security-related technology revenues in the form of installations,
consumables and services than from health and safety services.
The legacy health and safety businesses continue to bring
valuable income to the Group. Education, leisure, public transport
and the care sector represent a large proportion of the clients to
whom health and safety consultancy and training is provided. A wide
range of general commercial and industrial organisations complete
the client portfolio. In addition, the Group carries out statutory
examination of lifting equipment, pressure systems and other plant
and machinery via insurance brokers or directly for clients.
Our Scottish-based subsidiary specialising in quality systems
management goes from strength to strength and further commentary is
given later in this report. Conversely, our subsidiary engaged in
asbestos management solutions has continued to encounter
challenging market conditions and there is ongoing action to
eliminate the losses arising there.
In recognition of the need to reduce reliance on traditional
health and safety businesses, the Group moved into the security
technology sector in 2012. This process continued with two
further acquisitions in December
2015. The larger of those acquisitions, SG Systems (UK)
Limited (SG), involved a two-year earn-out period whereby part of
the consideration was based on performance. Due to this provision,
the Company was restricted in the steps that could be taken in
terms of integrating the businesses but agreement has recently been
reached with the sellers that allows this process to commence. This
is expected to result in savings where roles and functions can be
combined, and economies of scale can be better exploited. This will
enable us to bring forward the commitment given in last year’s
report where we stated that, after the earn-out timetable had been
completed, we would formally consolidate B to B Links Limited and
SG into a security division.
We also stated that in due course we would look to form a safety
division to run parallel with the security division. This
remains our strategy. The goodwill associated with Adamson’s
Laboratory Services Limited (ALS) was fully impaired during the
year as a result of an impairment review.
Acquisition payments
Under the terms of the acquisition of SG, a cash payment of
£200,000 fell due on the first anniversary of the purchase, in
December 2016. This amount has been
paid in full. A final payment becomes due in December 2017 and under the terms of the sale,
this could have been an amount from £25,000 to £375,000 as
determined by a formula that relates to performance over the
period. Based on the expected results, for the purposes of
the accounts, a fair value of £75,000 was initially provided for.
However, the business has not performed in line with the targets
that would have triggered a payment of that amount and we are
confident that the final payment will be limited to £25,000. This
has enabled us to release £50,000 of the initial estimated value
back to the income statement.
Net asset value
As at 31 March 2017, the Company
had consolidated net assets of £5.52m. There were 14,677,257
ordinary shares in issue at that date which equates to a net asset
value per share of 38p. The ordinary shares of the company continue
to trade at a discount to the net asset value, even after allowing
for the goodwill impairment. Nevertheless, a large proportion of
the Company’s assets relate to goodwill associated with
acquisitions and this is reviewed annually to make sure that values
in the group statement of financial position can be justified. For
the second year, we have found it necessary to impair ALS in
accordance with requirements of accounting standards. We are
writing down the carrying value of that business and this
represents a reduction of approximately 11% in the consolidated net
assets of the Group. The board is satisfied that all other goodwill
valuations can presently be justified.
Outlook
Ongoing political uncertainty and the weaker sterling exchange
rate continue to adversely affect the Group, and in particular the
security-related subsidiaries that import materials priced in euros
or US dollars.
It is encouraging that the Group saw a material improvement in
underlying EBITDA in the second half of 2016-17. Our legacy health
and safety businesses generally continue to enjoy a large amount of
repeat business and have a very loyal client base. Losses at our
asbestos-related business have bottomed out and management are
seeing stabilisation of prices after a period of heavy discounting.
There may be further costs associated with restructuring the
business but the board anticipates that the large trading losses
are a thing of the past.
Proposed restructuring of our security-related companies into a
single division will ultimately result in cost savings. In
addition, there continue to be good prospects for increased sales
and opportunities for technological innovation of the products
supplied. Significant new contracts can take a considerable
amount of time to materialise and various trials and talks are
underway with a number of existing and prospective clients.
Based on the latest management accounts (unaudited), the Group
had total revenues of £1.82m for the first quarter of 2017-18. This
is an increase of around 5% on the first three months of last year.
Based on those revenues, EBITDA for the first quarter is showing as
around £120k. This compares very favourably to the loss of £40k
that was reflected over the corresponding period last year.
Aside from the final payment expected to be £25,000 under the
terms of the purchase agreement for SG, no other acquisition
payments are due and the Group is presently not considering any
further acquisitions.
Performance by trading subsidiary
A review of the activities of each trading subsidiary is
provided below. The profit figures stated are before tax and
central management charges.
Adamson’s Laboratory Services Limited
(ALS)
- 2017: sales of £823,200 resulting in a loss of £194,600
- 2016: sales of £1,825,600 yielding a profit of £76,800
Competition within the sector continues to adversely affect
revenues and has led to a situation where ALS along with several of
its peers is trading at a loss. A number of loss-making competitors
entered administration during the year.
The business had a very disappointing year with sales materially
down and a resulting loss of £194,600. In response, ALS made
significant cost reductions in both cost of sales and expenditure
to compensate for the loss of revenue and negative margins. As part
of the cost reduction, several members of staff were made redundant
and the trading loss includes around £30,000 of severance pay.
The company has been supported by the Group and has recently
seen some areas for optimism. It continues to win repeat business
with blue chip clients and local government and has seen a growth
in the education sector.
The health and safety department’s turnover increased and the
volume of occupational hygiene consultancy showed some growth.
ALS has successfully maintained its accreditation with UKAS ISO
17020, 17025, ISO 9001 and ISO14001.
B to B Links Limited (B to B)
- 2017: sales of £2,594,900 yielding a profit of £52,500
- 2016: sales of £2,551,800 yielding a profit of £134,200
During 2016-17 B to B generated revenues of £2,594,900
consistent with the previous three years. The majority of
sales in 2016-17 came from national accounts, primarily in the
department store, fashion retail, builders’ merchants and DIY
sectors. Independent retail sales were flat during the year
compared with 2015-16. Non-retail CCTV sales activities
contributed £254,400 to company revenues in 2016-17, the first full
year of integration of the business of Camerascan CCTV
Limited. Profits for the year fell by £81,700 due to a
combination of trade cost increases caused by the
depreciation of sterling following the June
2016 EU Referendum and a bad debt of around £40,000 incurred
after a client went into administration.
Despite the headwinds faced in 2016-17 the outlook for B to B
remains strong. B to B’s retail customer base has performed well in
the new financial year and existing key accounts all have clear
plans to invest in property projects and associated CCTV and
security tagging hardware during 2017-18. Global restructuring of
key competitors in both radio frequency and acousto-magnetic
security tagging technologies may also provide opportunities to
grow market share.
Closer operational links have developed with SG during the year
and these will deepen further during the 2017-18 financial year.
Key priorities for 2017-18 are to grow B to B sales by further
developing existing accounts, achieving stronger growth in
independent sales, both retail and non-retail and to improve
efficiency in technical delivery and stock management.
Inspection Services (UK) Limited
(ISL)
- 2017: sales of £227,600 yielding a profit of £44,200
- 2016: sales of £219,600 yielding a profit of £40,300
Health and safety legislation requires employers to ensure that
relevant equipment is examined at an appropriate frequency by a
competent person to ensure it remains safe to use. Many
organisations rely upon external agencies to assist them to comply
with their duties in this regard.
The main business of ISL is to carry out statutory examinations
and inspections of lifting plant and equipment, and of pressure
systems, through contracts placed by insurance brokers.
Commissions are paid to brokers for placing this work with ISL.
Approximately 75% of revenue is derived through the insurance
sector, with the remaining 25% from business placed directly by
clients.
ISL’s revenues rose by 3.5%, or £7k, from around £220k to £228k
over the period. The increase was because the volume of new
business outweighed the number of clients who did not renew the
service with ISL. Costs rose as a consequence of the delivery of a
greater number of services, and because sub-contractor fees rose in
the second half of the year due to a need to cover for the
medical-related absence of a member of staff. Despite the higher
costs incurred, pre-tax and management charge profit rose to a
little over £44k, an improvement of around £3.9k or 10%.
Personnel Health & Safety
Consultants Limited (PHSCL)
- 2017: sales of £666,900 yielding a profit of £218,900
- 2016: sales of £703,300 yielding a profit of £276,100
The principal activity of PHSCL in the year under review
continues to be that of providing general health and safety
consultancy and training services to public and private sector
clients. In addition, consultants provide expert witness reports in
connection with criminal and legal cases, and some editorial
content for safety publications.
Turnover decreased by around 5% with gross margins down to
59%. Higher staff salaries and the effects of pension
auto-enrolment, combined with an inability to pass on our extra
costs to clients were responsible for lower profits.
Most of PHSCL’s revenue is obtained under a retainer service,
with these clients’ often purchasing additional consultancy or
training days.
During the year an agreement was made with PHSCL’s largest
client to transfer a consultant from the payroll onto the client’s
headcount. Although a compensatory payment was received, this has
led to a net loss of recurring revenues.
The company continues to be a net provider of resources to other
members of the Group, with policy dictating that no cross-charges
are applied to reflect this contribution.
QCS International Limited (QCS)
- 2017: sales of £624,000 yielding a
profit of £210,800
- 2016: sales of £528,000 yielding a
profit of £122,700
QCS’s turnover and operational profit both exceeded management
expectations. It was hoped that the company would benefit
from changes to ISO standards, which experience has shown leads to
greater demand for both training and consultancy services.
This proved to be the case and the company increased sales
significantly in the year, while keeping a close control on
costs.
Sales increased by £96k (18%) compared to 2015-16 and the
corresponding profit increased by £88k (72%) to £211k. This
considerable increase in profit reflects the improved utilisation
of assets/resources.
QCS continues to be a leader in the design, marketing and
delivery of training courses and consultancy in respect of the ISO
standards, which can be seen in the high number of training courses
(public and in-house) and new consultancies delivered. QCS is
highly regarded within its locale and has a considerable share of
the ISO training market for southern and central Scotland.
The changes in 2015 to the standards ISO 9001 and ISO 14001
continue to underpin new sales. This is likely to continue
until autumn 2018, by which point transition must be
complete. QCS has presented plans to find new markets for
2018 onwards should the demand for services linked to the new
standards decline.
QCS decided to retain full approved training partner status with
our main professional body, IRCA. During the year IRCA
adjusted their relationship with their training partners, causing
some of QCS’s competitors to decide to leave the group.
QCS continues to demonstrate high levels of customer retention;
70% of consultancy clients were retained while achieving a steady
growth of 15% in new clients to the consultancy
portfolio.
QCS’s medical device consultancy service has been in place for
over a year. Medical device consultancy sales were not as
high as hoped in the first half of the financial year but new
clients have been secured in early 2017. QCS are using their new
website and marketing initiatives to focus on generating further
work in this area which can be charged at a premium. Concerns are
being raised amongst clients about the potential impact of Brexit
in this sector which relies heavily upon EU cooperation in respect
of regulations. This uncertainty may generate opportunities
as clients seek reassurance and guidance once the new regulatory
framework is established.
It was hoped that the British standard OHSAS 18001 for health
and safety would have been replaced by a new international standard
ISO 45001 in 2016-17. This did not happen and the latest
indications are that this may not occur until late 2017. This
will provide us with an opportunity to assist clients with the
transition process, albeit at a lower rate than for work associated
with ISO 9001 and ISO 14001.
Quality Leisure Management Limited
(QLM)
- 2017: sales of £437,100 yielding a profit of £74,300
- 2016: sales of £506,290 yielding a profit of £95,900
The business continued to develop and diversify in 2016-17 but
the company’s core business functions will be the focus as QLM
continues to adapt to the changing business environment and client
base.
QLM saw a 14% fall in turnover from £506,290 in 2015-16 to
£437,100 in 2016-17. This was largely due to staffing issues;
a significant period of sickness absence in the second quarter and
the loss of the equivalent of one full time member of staff in
December 2016.
Auditing income declined by 22% from £108,900 in 2015/16 to
£84,300 in 2016-17. The number of audits undertaken has
decreased and lighter, more general topics or activity specific
reviews have taken precedence over QLM Leisuresafe™ audits.
Staffing and subcontractor’s costs varied significantly in the
latter part of 2016-17 with two part-time consultants retiring and
another member of staff leaving the payroll and moving to a
sub-contractor role to provide both parties with more flexible
working arrangements. Savings and efficiencies should
continue to be seen as sub-contractors are increasingly used in
2017-18.
Accident investigation income, although slightly down year on
year plays a significant role in publicly demonstrating QLM’s
competence and level of expertise. QLM continues to provide
expert witness testimony for civil and criminal cases and has been
engaged by the Health and Safety Executive, environmental health
departments, solicitors and insurance companies in support of
swimming, leisure and service industry cases.
Publications generated £6,200 of income in the year ended 31
March 2017. The CIMSPA publications, Risk Assessment Manual
and Best Practice Health & Safety Operating Procedures were
published later than expected by the Institute and sales suffered
accordingly.
QLM continues to update its technology, including website
development, server replacement and the utilisation of cloud based
systems. This expenditure is essential for the development of
the business and to gain efficiencies within it. Investment in this
area will continue to be a priority in 2017-18.
RSA Environmental Health Limited
(RSA)
- 2017: sales of £374,100 yielding a profit of £65,100
- 2016: sales of £413,100 yielding a profit of £72,900
The principal activities of the company in the year under review
were the provision of health and safety consultancy services and
training, together with the sale of associated health and safety
products.
Income has fallen year on year, as RSA continues its transition
away from the provision of low-margin services to the public sector
to higher margin private sector services. The benefit of this
strategy is seen in the higher gross profit margins despite lower
revenues.
Over the past year RSA has focused on adapting the company to
one that no longer relies upon the previous strategy that was
geared towards Local Authority contracts. This has allowed the
business to concentrate its effort on supporting schools with their
management of health and safety via the SafetyMARK service core
offering. This area has seen an increase in growth from
2015-16 with the highest turnover achieved since the company moved
into the schools market.
Indications show that there is a continuing demand despite cost
pressures being placed on the mainstream schools sector. The
SafetyMARK service is proving cost effective and is finding favour
within its target market. The company seeks further growth through
provision of services to multi academy trusts to build on revenues
and increase the client base. Several multi-school partnerships
have increased the number of schools under contract and this has
brought in additional revenues.
The independent schools sector is another area where RSA has
seen an uplift in clients using the SafetyMARK scheme. Cost
pressures are less evident in this sector and the more complex
nature of the schools concerned means that generally a higher
premium can be commanded. Further marketing and attendance at the
Independent Schools Bursars Association conference in May 2017 will aim to increase revenues from this
part of the market.
One London borough council has
continued to promote SafetyMARK as an alternative safety support
service to that previously provided by the local authority. The
business has seen modest growth in this area in the past year with
the continued provision of audits and support as well as providing
health and safety training within the borough. Currently there are
17 schools within the borough signed up to the scheme. Some
schools are currently operating with no support and free training
seminars were provided to increase awareness of the SafetyMARK
brand. This resulted in new enquiries and an additional school
signing up.
SG Systems (UK) Limited (SG)
- 2017: sales of £1,414,500 yielding a loss of £113,500
- 2016: sales of £256,700 yielding a loss of £68,900 (3.5
months)
In its first full year since joining the Group, SG generated
sales of £1,414,500. Sales were lower than forecast due to a
hiatus in store openings and refits from a major grocery customer
following its acquisition of another retailer. This, combined
with pressure on gross margins caused by the depreciation of
sterling following the June 2016 EU
referendum, has meant that the company made a loss for the
year.
SG’s traditional core customer base of national retail chains in
the department store, fashion, grocery, stationery and electronics
sectors has generally continued to trade well during 2016-17.
The significant efforts made by the SG sales team during 2016-17
have seen a number of new retail accounts and a number of new
product lines being launched in response to customer demand which
will provide a strong platform for growth in 2017-18 and
beyond. Sectorally the customer base has also diversified
with a series of projects implemented in a range of non-retail
sectors, including construction, school libraries, prisons/secure
units, tourist attractions and hotels.
During the year closer operational links have developed with B
to B and these will deepen further during the 2017-18 financial
year. SG’s key priorities for 2017-18 are to grow sales through the
introduction of new products in existing accounts and new accounts
and to improve efficiency of stock management and technical
delivery.
PHSC plc
- 2017: net loss of £501,100 before management charges,
exceptional costs and dividends received
- 2016: net loss of £479,600 before management charges,
exceptional costs and dividends received
The parent company incurs costs on behalf of the group and does
not generate any income. The costs incurred by PHSC plc represent
the costs of running an AIM listed group and are consistent with
the previous year.
On behalf of the board
Stephen King
Group Chief Executive
11 August 2017
Group Statement of Financial Position
As at 31 March
2017
|
|
|
2017
£ |
|
2016
£ |
Non-Current Assets |
|
|
|
|
|
Property, plant and equipment |
|
|
626,224 |
|
675,345 |
Goodwill |
|
|
3,878,463 |
|
4,503,654 |
Deferred tax asset |
|
|
21,693 |
|
497 |
|
|
|
|
|
|
|
|
|
4,526,380 |
|
5,179,496 |
Current Assets |
|
|
|
|
|
Inventories |
|
|
487,367 |
|
416,371 |
Trade and other receivables |
|
|
1,447,493 |
|
1,894,875 |
Cash and cash equivalents |
|
|
206,719 |
|
256,558 |
|
|
|
|
|
|
|
|
|
2,141,579 |
|
2,567,804 |
Total Assets |
|
|
6,667,959 |
|
7,747,300 |
Current Liabilities |
|
|
|
|
|
Trade and other payables |
|
|
1,064,358 |
|
1,221,599 |
Current corporation tax payable |
|
|
- |
|
103,403 |
Deferred consideration |
|
|
- |
|
200,000 |
Contingent consideration |
|
|
25,000 |
|
- |
|
|
|
|
|
|
|
|
|
1,089,358 |
|
1,525,002 |
Non-Current Liabilities |
|
|
|
|
|
Deferred tax liabilities |
|
|
57,800 |
|
62,755 |
Deferred consideration |
|
|
- |
|
75,000 |
|
|
|
|
|
- |
|
|
|
57,800 |
|
137,755 |
Total Liabilities |
|
|
1,147,158 |
|
1,662,757 |
Net Assets |
|
|
5,520,801 |
|
6,084,543 |
Capital and reserves
attributable to equity holders of the Company |
|
|
|
|
Called up share capital |
|
|
1,467,726 |
|
1,308,634 |
Share premium account |
|
|
1,916,017 |
|
1,751,358 |
Capital redemption reserve |
|
|
143,628 |
|
143,628 |
Merger relief reserve |
|
|
133,836 |
|
133,836 |
Retained earnings |
|
|
1,859,594 |
|
2,747,087 |
|
|
|
|
|
|
|
|
|
5,520,801 |
|
6,084,543 |
Group Statement of Comprehensive Income
For the year ended 31 March 2017
|
|
|
2017
£ |
|
2016
£ |
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
7,162,299 |
|
7,004,340 |
|
|
|
|
|
|
Cost of sales |
|
|
(3,988,623) |
|
(3,803,240) |
|
|
|
|
|
|
Gross profit |
|
|
3,173,676 |
|
3,201,100 |
|
|
|
|
|
|
Administrative expenses |
|
|
(3,319,092) |
|
(2,930,931) |
Administrative expenses -
exceptional |
|
|
(625,191) |
|
(608,936) |
|
|
|
|
|
|
Other income |
|
|
1,560 |
|
- |
Other income - exceptional |
|
|
50,000 |
|
- |
|
|
|
|
|
|
Loss from operations |
|
|
(719,047) |
|
(338,767) |
|
|
|
|
|
|
Finance income |
|
|
471 |
|
1,052 |
Finance costs |
|
|
(2,117) |
|
(8) |
|
|
|
|
|
|
Loss before taxation |
|
|
(720,693) |
|
(337,723) |
|
|
|
|
|
|
Corporation tax credit |
|
|
29,495 |
|
(75,920) |
|
|
|
|
|
|
Loss for the year after tax
attributable to owners |
|
|
|
|
|
of the parent |
|
|
(691,198) |
|
(413,643) |
|
|
|
|
|
|
Other comprehensive income |
|
|
- |
|
- |
|
|
|
|
|
|
Total comprehensive income
attributable to owners of |
|
|
|
|
|
the parent |
|
|
(691,198) |
|
(413,643) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted Earnings per Share
from continuing operations |
|
|
(4.92)p |
|
(3.23)p |
Group Statement of Changes in Equity
For the year ended 31 March 2017
|
Share
Capital
£ |
Share
Premium
£ |
Merger
relief
reserve
£ |
Capital
Redemption
Reserve
£ |
Retained
Earnings
£ |
Total
£ |
Balance at 1 April 2015 |
1,268,634 |
1,751,358 |
79,836 |
143,628 |
3,355,410 |
6,598,866 |
Loss for year attributable to equity
holders |
- |
- |
- |
- |
(413,643) |
(413,643) |
Issue of shares on acquisition |
40,000 |
- |
54,000 |
- |
(4,385) |
89,615 |
Dividends |
- |
- |
- |
- |
(190,295) |
(190,295) |
Balance at 31 March 2016 |
1,308,634 |
1,751,358 |
133,836 |
143,628 |
2,747,087 |
6,084,543 |
|
|
|
|
|
|
|
Balance at 1 April 2016 |
1,308,634 |
1,751,358 |
133,836 |
143,628 |
2,747,087 |
6,084,543 |
Loss for year attributable to equity
holders |
- |
- |
- |
- |
(691,198) |
(691,198) |
Issue of shares on acquisition |
159,092 |
164,659 |
- |
- |
- |
323,751 |
Dividends |
- |
- |
- |
- |
(196,295) |
(196,295) |
Balance at 31 March 2017 |
1,467,726 |
1,916,017 |
133,836 |
143,628 |
1,859,594 |
5,520,801 |
Group Statement of Cash Flows
For the year ended 31 March 2017
|
Note |
|
2017
£ |
|
2016
£ |
Cash flows from operating
activities: |
|
|
|
|
|
Cash generated from operations |
I |
|
124,925 |
|
414,062 |
Interest paid |
|
|
(2,117) |
|
(8) |
Tax paid |
|
|
(100,061) |
|
(83,041) |
Net cash generated from operating
activities |
|
|
22,747 |
|
331,013 |
|
|
|
|
|
|
Cash flows used in investing
activities |
|
|
|
|
|
Purchase of property, plant and
equipment |
|
|
(2,087) |
|
(35,654) |
Payments in relation to acquisitions
(net of cash acquired) |
|
|
- |
|
(262,674) |
Disposal of fixed assets |
|
|
1,574 |
|
724 |
Interest received |
|
|
471 |
|
1,052 |
Net cash used in investing
activities |
|
|
(42) |
|
(296,552) |
|
|
|
|
|
|
Cash flows used by financing
activities |
|
|
|
|
|
Payment of deferred
consideration |
|
|
(200,000) |
|
(50,000) |
Proceeds from placement of
shares |
|
|
323,751 |
|
- |
Dividends paid to Group
shareholders |
|
|
(196,295) |
|
(190,295) |
Net cash used by financing
activities |
|
|
(72,544) |
|
(240,295) |
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash
equivalents |
|
|
(49,839) |
|
(205,834) |
Cash and cash equivalents at
beginning of year |
|
|
256,558 |
|
462,392 |
Cash and cash equivalents at end
of year |
|
|
206,719 |
|
256,558 |
|
|
|
|
|
|
Notes to the Group Statement of Cash
Flows
|
|
|
2017
£ |
|
2016
£ |
|
|
|
|
|
|
I. CASH GENERATED FROM
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
Operating loss – continuing
operations |
|
|
(719,047) |
|
(338,767) |
Depreciation charge |
|
|
44,089 |
|
46,882 |
Goodwill impairment |
|
|
625,191 |
|
608,936 |
Fair value movement in contingent
consideration |
|
|
(50,000) |
|
- |
Loss on sale of fixed assets |
|
|
5,545 |
|
2,298 |
Increase in inventories |
|
|
(70,996) |
|
(28,179) |
Decrease/(increase) in trade and
other receivables |
|
|
447,384 |
|
381,937 |
(Decrease)/increase in trade and
other payables |
|
|
(157,241) |
|
(259,045) |
Cash generated from
operations |
|
|
124,925 |
|
414,062 |
|
|
|
|
|
|
Notes to the results announcement of PHSC plc
The financial information set out above does not constitute the
Group's financial statements for the years ended 31 March 2017 or 31 March
2016, but is derived from those financial statements.
Statutory financial statements for 2016 have been delivered to the
Registrar of Companies and those for 2017 have been approved by the
board and will be delivered after dispatch to shareholders. The
auditors have reported on the 2016 and 2017 financial statements
which carried an unqualified audit report, did not include a
reference to any matters to which the auditor drew attention by way
of emphasis and did not contain a statement under section 498(2) or
498(3) of the Companies Act 2006.
While the financial information included in this announcement
has been computed in accordance with International Financial
Reporting Standards (IFRS), this announcement does not in itself
contain sufficient information to comply with IFRS. The accounting
policies used in preparation of this announcement are consistent
with those in the full financial statements that have yet to be
published.
Annual General Meeting
This year’s annual general meeting (“AGM”) will be held at
10.00am on Monday 11 September 2017 at The Old Church, 31 Rochester
Road, Aylesford, Kent ME20 7PR.
The report and accounts and notice of the AGM will be posted to
shareholders on or around 15 August
2017 and will be available to view on the Company’s website
at www.phsc.plc.uk
Dividend
No final dividend is proposed but an interim dividend may be
considered if progress continues