| Date | Subject |
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18/4/2021
19:48 | lehibou: Marlowe(MRL) still buying.Just raised £100 m.Looking at scores of small companies. Come on PHSC, either sell out near net asset value or buy your own add-ons. Perhaps all will revealed with the next results.Too small to stand alone!
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30/11/2020
17:15 | ntv: another big trade (By mkt cap) for PHSC
probably from results day?
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28/10/2020
20:25 | lehibou: I have mentioned Marlowe (MRL) before.Today they agreed to buy Ellis Whittam for £59m.Ellis have Turnover of £16.1m and EBITDA of £4.4m.Approx 4 x turnover and 13 x EBITDA.PHSC Turnover £4.4m and EBITDA of 0.255m. If the security division can be turned round or sold,then EBITDA of 0.4m would be possible.Applying similar values to PHSC produces a valuation of £18m to £5m. Obviously flights of fancy,but a long way from current £ 2m and an 8% yield while we wait.One day Rodney!
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28/8/2020
12:31 | cjohn: I've just caught up with the results. In the circumstances, they look OK to me. I remain a holder here with quite a big position (relative to total company size.)
- As in the report: "Although the economic outlook remains uncertain, the discipline of forecasting has been maintained, though initially with a reduced horizon. Expectations for first half of 2020-21 are that with the continued use of Government funding assistance, the Group should do no worse than break even and will maintain a strong cash position."
These are vey encouraging words.
- Net cash was up at 756k. Current market cap: 1.7m.
- Trading at around net TANGIBLE book value. (it's not a net-net, net curtains!)
Trading at a deep discount to a sum-of-the-parts valuation. So as ever, it looks to me like the real value here would be in selling off the security division and using funds for re-investment in consulting businesses or a special dividend.
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20/8/2020
08:59 | netcurtains: thats THREE from list done well: EVE, FCCN and now PHSC
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20/8/2020
08:30 | value hound: I'd say these results were pretty much as expected in the weird circumstances. I'm glad they held the divi.
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20/8/2020
07:59 | netcurtains: EBITDA of GBP0.255m, an increase of approximately 120% from GBP0.116m
last year (after adjustment for exceptional gain on property sale of GBP0.166m
last year)
And proposing a DIVIDEND...
Final results out...
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08/8/2020
17:24 | netcurtains: PHSC - My feeling is, during the lockdown etc etc the market for PHSC has shrank considerably however the market that does exist (going forward) will have a much higher demand for Health and Safety.
I think the covid era could be a huge and interesting challenge for this company, it could be the making of them and since its a NETNET the down side is pretty small...
However the potential for serious business growth is there if they can grab a large enough slice of the covid health and safety market.
Anyway interesting proposition.
Market Cap about £1.3M Imagine if they ever made £1M net profit from an era dominated by covid Health and Safety? What will the Market Cap be if they started to make significant profit? £5M to £10M? Obviously a wild punt but who knows the future?
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04/8/2020
12:00 | netcurtains: This is a NETNET stock AND its in an ideal sector for Covid19 era - cleaning offices (Health & safety)
Blurb:
PHSC PLC, through its subsidiaries provides health, safety, hygiene & environmental consultancy and training services to organizations across the UK.
Https://www.phsc.co.uk/covid-19-risk-assessment/
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19/5/2020
13:54 | lehibou: I was looking through the AIM 100 in the IC and I noticed MARLOWE (MRL).This is a company that has rapidly expanded in the fields of health and safety,fire safety, water treatment,law, occupational health and air quality through numerous takeovers of smaller companies .Quite a conglomerate and reminds me of the Slater/Hanson era although Marlowe are mainly using cash plus earn outs. I wish them well, but the point of this rambling is the prices paid and the relevance to PHSC.
All millions
Company Revenue PBT Net Assets Price Paid
Solve Not disclosed
(HR and
employment law)
Managed Occupational 4 0.6 0.6 1.8 up to 3
Health
Eurosafe 3.4 up to 2.5
Law At Work 5.4 1.0 2.2 6.3 up to 10.3
(subscription based
employment law
and Health and safety)
Fire and Safety 4.3 0.6 1.2 2.4 up to 2.7
Systems Ltd
Quantum Compliance 4.5 0.5 1.0 4.0 up to 7.2
(health and safety)
Current Market Value
PHSC 4.43 0.28 5.3(?) 1.5 (inc 0.7 cash)
So what is my point. Marlowe seem to have a penchant for buying small companies that help others with the necessary but “irritating221; aspects of corporate life. If PHSC can ever turn around the security subsidiary (or sell it) then their profits should be nearer the £0.5mi level. Their worth as a stand alone company or as a purchase for another would in my opinion be in the region of 25-30p. A purchaser would surely be able to substantially reduce the Head Office costs. Do not be mesmerized by their net assets as they must surely be reduced by more write downs from the security side. Again courtesy of the IC, I noticed a quote from Stuart Widdowson (a manager of a small companies fund)
“We look at whether a company would be worth more to a trade buyer or a private equity investor”
N.B
All the Marlowe and PHSC's figures are pre COVID 19 but I think this demonstrates that when normality(?) returns and Health and Safety are still paramount in both company and public minds, then a re-evaluation could occur.
I have a holding and after my own analysis have bought more. I am happy with my position and the income stream (final might be passed as per other companies!),and view it as a long term holding but would not fight too hard against a takeover at the right price.
But these are my musings. I would be interested in other thoughts.
As ever DYOR please, and not take the above as an investment recommendation. I am using my own money and my own research for better or for worse. Again I repeat DYOR.
,
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PLUS1
