Phsc Share Discussion Threads

[egoi] 29/5/2006 13:10

Thanks Longtech yes I think second half eps will be very good, I was lowering my estimate on the increased number of shares and lower first half (the latter for perfectly good reasons), not on what i think they will achieve from now on.
The second half was strong last year (c2.2p) and given the recent trading statement 3p+ for the second half may well be very achieveable, bringing about 3.8p+ for the year which would be a fine performance.
Thanks for your added figures, not any major further outlay on acquisitions then, and I am very tempted. (I see from the accounts amounts due after more than one year are 476k).

Quality business, like it, and anything under 60p would look very attractive.

[longtech] 29/5/2006 12:41

Egoi

I do hold

Looking at shares in issue, the figure I have is 9.83 million.
Back at the interim stage, the average was a little under 9.3 million - exact figure 9.299165 million.
So we appear to have increased shares in issue by a little over 53,000,
Not much over £31,000 on the current mid price.

The significant drop in eps at the interims was down, as we know, due to the large cash outflow, in paying for the aquisitions.
I know £125,000 in cash is due on 17th June 2006, with a further £100,000 in a years time and the 5% extra on the excess turnover is payable.

Adamson's Laboratory Services Limited ("ALS").
Audited turnover of ALS for the year to 30 April 2004 was GBP1,373,434, which
generated pre-tax profits of GBP210,082. Audited turnover of ALS for the ten
months to 28 February 2005 was GBP1,495,245 with pre-tax profits of GBP332,790.
The purchase price is GBP1.19m, plus a cash payment equivalent to the value of
net assets. This is an additional GBP445,000 of which GBP175,000 constitutes the
freehold premises. The purchase price is higher than originally anticipated due
to the continuing growth of ALS.
The consideration is satisfied by GBP1.31m in cash, which has been paid at
completion plus GBP100,000 in ordinary shares of PHSC plc at 62.5p (160,000
ordinary shares) also issued at completion. A second installment of GBP125,000
in cash is payable on the first anniversary pursuant to the agreement. A further
installment of GBP100,000 in cash is payable on the 2nd anniversary of the
completion date.
Should turnover of ALS, which will be a wholly-owned subsidiary of PHSC, exceed
GBP1.8m in the first or second year following completion, a payment equivalent
of 5% of the excess will be due to the vendors.

I see what you say about a big jump in eps next year.

However given the strong performance in all parts of the business, with the exception of HSCL.
Do you not think we will have a significant recovery in eps in the Finals, due in a few weeks.
There is no dilution to speak of and the bulk of the cash outflow was booked in the Interim results.
I appreciate they have to keep back £125,00 plus X on ALS turnover and for the likely Dividend - all a drag on eps.

[egoi] 29/5/2006 11:39

Hi masurenguy and Big Fella, and anyone else looking in!!

I think we might see a lower eps this year, but then a very large rise next year.

Have been going through these over the weekend in more detail and still like what I see. There are caveats in that acquisitions have been paid for in a mix of new shares and cash, and this from the interims is significant:

'The total cost of the transition to AIM, including costs in respect of the
share issue was £185,000, which has been set against the share premium account.
This has of course resulted in a corresponding reduction in net assets.

Financial Review

There was considerable expenditure associated with the acquisitions and
corporate activity that took place in the period. Whilst the costs have now
been accounted for, it is too early to have enjoyed the benefits.
Group turnover (consolidated) for the period is £1.465m (compared with £0.976m
for the same period last year). Group profit before tax provision is £137,000.
Earnings per share (diluted) at the interim stage are 0.79p.'

Also the number of shares now in issue is just under 10 million, up from the average figure quoted in the interims. I am fairly sure there are no further payments or share issues to be made.

All that taken into account I think the company is now in an incredibly strong posiiton following two strong trading updates recently and the fact not only ar the acquisitions paid for, they are now at the point of 'contribution' to profits.

In turn that will lead to a stronger eps particularly next year and leave the company in a good position to make further acquisitions in a very disparate sector where consolidation should be easy - and they remain the only quoted specialist company in the health and safety sector.

In short, the shares will never set the world on fire, but if we are to have market volatility or a downturn, this share looks pretty bomb-proof in that (sometimes silly) legislation will contine to mean this is one area companies cutting back will not be able to avoid paying for. PHSC has a very strong blue-chip client list.

No position (had one on Ofex at one time) but tempted to take one in this really nice business, despite the illiquidity.

[masurenguy] 03/5/2006 21:09

Hey - I think we have another mutual holding in DGP.
This one looks like a long term value play too !
Curious to see their year end results in June.
Presume share price has drifted down by 20% since their AIM listing since it is below most peoples radar screens with a market cap under £6m.

[the big fella] 21/4/2006 12:15

Come on there must be someone out their that can recognise value?

[the big fella] 14/4/2006 23:11

Another positive trading update gone completely unnoticed by the market. Also the share overhang as been resolved. I don't know I suppose profits and growth will come back into fashion at some point. Perhaps they should announced they are doing some work on a oil rig.

[evilwebby] 04/3/2006 19:37

Have this one on my watchlist. Far too cheap at this price. 2004 EPS was 4p, and the company has been doing better for the first 3 quarters 05/06. It seems that if it isn't an oily or a miner, the market isn't interested.. But that will change. Might not be tomorrow or next month, but value always comes through in the end.

EPS figures:

2003 - 3.13p
2004 - 4.06p

I think 2005 EPS could come in between 5p-6p.. EPS growth of 25%-50%, and p/e of 12. It's a screaming buy. And it's a decent margin business - 2004 pretax of 476k on turnover of £2.2m. Multi-bagger potential here if you give it a few more years.

[the big fella] 02/3/2006 09:01

25P would put them on an historic PE of about 4 and forward PE about 2.5. You can never say never, but I doubt that will happen. These guys will genrate cash flow of near a million quid next year, and will probably be paying dividends.

[elsworth] 01/3/2006 23:38

5 million market cap is FAR TOO HIGH, especially on mediocre sales!!!!!!!!!

.......can be generous and give it a 25p share price.........but gut feeling says 10p/14p.

Hope it helps

[the big fella] 01/3/2006 10:34

I don't run the market and can't stop people selling. All I can do is post my research and people can make their own minds up.
Do you see anything in that statement that would suggest anything other than a company performing really well? They are still at an early stage - the market is fragmented, and ripe for consolidation. PHSC will have years of double digit growth ahead of them.

[gilston2] 01/3/2006 10:28

So why has the share price fallen by 6.5 % this morning?

[the big fella] 28/2/2006 18:38

I think it is worthwhile reminding people of the content of the trading statement released in January. This stock has been overlooked. Value will out in the end. This share is fundamentally cheap. Some steady chunky buying over the last few trading days has cleared what appeared to be a small over hang there was. Last time I checked today there was only 1500 shares on the offer (this has consistenTly been beteween 37500 & 25K).

Company PHSC plc
TIDM PHSC
Headline Trading Statement
Released 08:00 17-Jan-06
Number PRNUK-1601



Trading Update

PHSC plc, the provider of health, safety and environmental services to
corporate and public sector clients, is pleased to announce that trading in the
third quarter of the current financial year fully met internal expectations and
that management anticipate a similar performance in the fourth quarter. The
Group currently have a record order book and continue to win new contracts. In
particular, the recently acquired Adamson's Laboratory Services Limited now has
a forward order book that approaches £3million.

Management accounts have now been completed for the third quarter of the
Group's trading year, covering the months of October, November and December
2005.

The monthly average of sales in the third quarter was 20% higher than the
monthly average sales achieved during the first half of the year which led to
trading profits in the third quarter being 60% above the average for the
previous two quarters.

Sales for the first three quarters of the current financial year were £2.9m and
the Group expects to be close to the top end of its internal target range of £
3.8m to £4m of sales for the full year. Profits before plc charges and tax
currently stand at £456,000. Plc charges are £95,000 in the year to date.

It should be noted that the acquisition of Adamson's Laboratory Services
Limited ('ALS') was completed in mid-June, thus approximately £400,000 of ALS
sales will not be included in the Group's year-end profit and loss account.
This will, however, have a relatively small effect overall as only £25,000 of
profit arose from those sales.

Prospects for wholly-owned subsidiaries:

Personnel Health & Safety Consultants Limited ('PHSCL')

The company recently announced that it had been awarded an improved contract
with the Go-Ahead Group plc, valued at a minimum of £345,000 over three years.

Subscriptions to the company's safety advisor service continue to provide a
regular income, with £150,000 of subscriptions due in the last quarter of the
financial year. The company is leading a group-wide initiative to promote this
service through the use of a professional marketing organisation.

RSA Environmental Health Limited ('RSA')

The last part of the financial year is traditionally the busiest and most
lucrative for RSA. Most of the company's work is for local authorities for whom
31 March is a significant date by which certain performance and budgetary
targets must be achieved.

ALS

The company now has a forward order book which is approaching £3m, which is the
highest in the company's history. This includes substantial ongoing contracts
with local authorities, property management companies, the leisure sector,
housing associations, universities and other institutions. The demand for
asbestos management services continues to increase and the company is working
to full capacity over the last quarter of the financial year. New accounting
disciplines have been introduced and this will lead to the cessation of a
factoring arrangement in February, with a saving of £3,000 per month.

Health and Safety Click Limited ('HSCL')

This company was acquired for its future potential and a loss in the financial
year was anticipated. Management are predicting improvement in sales over the
coming months, and a narrowing of losses. The Group does not expect to be
called upon for the maximum investment of £75,000 pledged at the time of
acquisition, and is confident that future annuity income from subscribers to
HSCL's on-line services will enable the company to become profitable in the
medium term whilst producing additional revenues or the other subsidiaries.

[the big fella] 24/2/2006 09:25

Another thing - I am expecting them to pay a maiden dividend when full year results are announced.

[the big fella] 24/2/2006 09:20

I have bought back in today. Looking at the recent trading update we can expect full year to come in around 650K. This puts them on a single figure earning multiple for last year. However next year it will get interesting. The market has overlooked the time and effort taken to bed in acquisitions. The real benefit will be seen in next years numbers. I expect these to be above £1 before the year is out as people wake up to the growth potential here.

[egoi] 27/1/2006 11:03

I'm absolutely certain as a long term follower of the company from ofex days that management did not mean that to be the case, but I agree some sort of figure, even if indicative, might have been helpful. Not prepared to guess though myself!

They are a good experienced management and I think that fully in line with expectations is pretty bullish from them!

[gilston] 27/1/2006 10:42

The recent trading statement reads like something out of the Da Vinci Code.

Has anyone tried to decipher just what annual pre-tax profit for 2005/6 is being indicated? My best guess is around £660,000.

Any other ideas?

[egoi] 19/1/2006 15:03

Agree although I sold at the end of the Ofex days, thinking of getting back in as the statement was positive with the exception of PHS Click which shouldn't hold them back unduly.
Nice niche company with the chance to lead sector consolidation and thereby to expand significantly. tepid response to statement might give an opportunity to potential buyers.

[primrose 100] 17/1/2006 09:33

Very bullish trading statement just come out.

Q3 profits will be 60% up on previous 2 quarters.

All very pos.

[longtech] 05/1/2006 19:12

After the lacklustre interims, it is nice to see todays announcement of a
sizable contract.
Cancelling Adamsons Factoring contract will save them £3,000 a month
The interims include the cost of the placing and move to Aim.
With a few more contract wins and a dividend announcement the finals ought to make for pleasant reading.

[longtech] 31/10/2005 13:40

Last years interims were announced on 18th November.
This year Friday 18th November - may be the date.
Less than three weeks.

[pawsnjaws] 27/9/2005 14:35

ok i am out, it was taking too long to get anywhere. However - if you are still holding the fact that I have sold will make this share rocket within the next two hours.

Good Luck

[pawsnjaws] 27/9/2005 14:25

i cant sell online? max 100?

[longtech] 02/8/2005 21:23

It pays to be patient with stocks like this.
Over a few years you may be pleasantly suprised.

[pawsnjaws] 02/8/2005 12:58

It seems very quiet..