Phsc Share Discussion Threads

[skyracer] 27/9/2013 10:42

I was a little interested in this at first sight, but on deeper investigation ....

They are struggling.

They may well make their revenue target (£6.5m+) but are already pushed to just match last years EBITDA(£603k), never mind this year's target (£700k+). Currently only £233k for 5 months. Dep and Amor will have risen due to the acquisitions so pretax may be lower than expected. Then of course eps will be diluted.

I suspect they have overpaid for the acquisitions.

Today's placing looks like an emergency action and may not be the last. What happened to the cashflow forecasts? Why did they pay a dividend then suddenly seem forced to make a placement? Is the bank getting nervous?

As the saying goes :

Turnover is vanity, profit is sanity, but cashflow is reality.

Its the cashflow burden and potential further dilution that makes PHSC high risk.

AVOID

[battlebus2] 27/9/2013 10:34

Trouble is the share price would more than likely trade below todays level if the dividends were stopped, this has become a high yield share for the past couple of years and to stop them now would see a lot of P.I's. moving elsewhere. imv dyor etc..though i do see where your coming from.

[evaluate] 27/9/2013 10:09

BB,

To be clear, I don't want the dividends if they're then going to run off & dilute us.

If they need the money badly enough to raise it at 25p per share (before costs!), then don't pay out the dividends. Wait until the business can support them.

[battlebus2] 27/9/2013 09:51

I agree captain we should bounce from here.

[capt bligh] 27/9/2013 09:37

Disagree... shock horror company using capital markets to raise capital.

Founders owned too much of this company

Turnover is increasing rapidly bound to put pressure on cashflow, remember recent puchase was funded from cash

Would expect a bounce from here as its a perfect ISA stock, lots of potential growth to come and a decent divi.

[battlebus2] 27/9/2013 09:34

What do you mean don't pay us dividends??

We just got one for 1.5p!!

Admittedly the discount is more than i would have wanted, 28p seemed reasonable.

[battlebus2] 27/9/2013 07:35

£520k raised to provide working capital, at 25p no wonder it was oversubscribed.
Northland capital have warrants for 100k at 45p. On the face of it probably a better deal than the banks and symptom of growth which should flow through to shareholders eventually.

PHSC plc ("the Group"), a leading provider of health, safety, hygiene and
environmental consultancy services and security solutions to the public and
private sectors, is pleased to announce that the Company has conditionally
raised GBP520,000 before expenses through a placing of 2,080,000 new Ordinary
Shares of 10p each (the "Placing Shares") at a price of 25p per Placing Share
(the "Placing"). The Placing was oversubscribed, primarily taken up by
institutional investors, and included Director participation. The Placing
Shares represent approximately 16 per cent. of the enlarged issued share
capital.

Trading update

Management accounts for the first five months of the Company's financial year
(unaudited), covering the period to end August 2013, show sales of GBP3,088,000
and EBITDA of GBP233,300. The comparative period for last year showed sales of GBP
1,766,000 and EBITDA of GBP50,700.

Use of proceeds

The net proceeds of the Placing are expected to amount to GBP482,000 and will be
used as additional working capital to fund the continued growth of the Group.

With this new funding in place we are confident that we can overcome
the cash flow constraints that have been impacting the business. On behalf of
the board I thank our investors for the confidence they have shown in us, and
look forward to justifying their support through performance."

[battlebus2] 09/9/2013 11:19

Loverly new highs :)) looks like a buy to be reported later.

[capt bligh] 09/9/2013 08:39

Agreed... I think extremely well. Huge jump in turnover.

[battlebus2] 09/9/2013 07:31

AGM statement reads well imv, still performing well with the two new businesses and Adamsons lab going well.

[battlebus2] 21/8/2013 08:02

X dividend today..

[battlebus2] 09/8/2013 17:16

New highs again today with only 8k traded. X dividend for 1.5p on 21st August for holders to look forward too.

[battlebus2] 21/7/2013 12:51

Yes just back from a break and very impressed with the results.

* EBITDA improved by 35% at GBP0.603m, up from GBP0.445m
* Group revenues increased by 30% to GBP5.791m compared with GBP4.434m
* Cash reserves of GBP0.216m
* Group net assets rise to GBP5.63m from GBP5.37m
* Basic earnings per share up 25% to 3.64p from 2.91p
* Proposed final dividend increased by 50% to 1.5p per share

The decision to invest away from health and safety has been a brave but necessary one given the lower revenues from that sector. I didn't expect to see a special dividend paid this year given the cash payments but i'm very pleased we have declared a 50% increase to 1.5p leaving a very healthy annual yield.
The next paragraph shows how undervalued we are and this year no one should doubt the commitment to AIM.

Despite recent upward movements, our shares continue to trade well below asset
value. The board regularly reviews each area of corporate expenditure,
including that relating to our trading platform, to satisfy itself that
maintaining an AIM listing remains appropriate. We do however remain committed
to AIM, and the associated costs become easier to justify when we are in a
period of corporate growth.

A lot of possibilities for growth with the new B to B,

Through our most recent acquisition, B to B, we expect to increase our presence
in this marketplace. As well as launching new products to the sector, we
propose to capitalise on B to B's good reputation and high profile to increase
revenues from our current range. We are presently working to build a more
robust infrastructure, necessary to adequately service the rapid expansion of
the CCTV side of the business. Once this new structure is in place, we will be
well-positioned to target a wider variety of sales opportunities. We also
recognise that potentially there is an overlap between security and safety,
meaning that there will be scope for cross-selling other Group services to the
client base.

Well done Stephen and team.

[capt bligh] 09/7/2013 12:26

Pretty good results I would say

[evaluate] 15/5/2013 09:30

dd776,

Yes.

A good one too.

Looks like things are picking up a little at PHSC.

[dd776] 13/5/2013 08:20

is there a trading statement due?

[amorruso] 10/5/2013 11:23

Chart looking helluva tasty for a breakout on this one in the coming months.

[battlebus2] 19/4/2013 17:41

It may not be possible but then again we are trading ahead.

[gilston] 19/4/2013 17:29

Hoping for another 2p per share dividend this year ?

[battlebus2] 19/4/2013 15:53

Touching new recent highs :))

[battlebus2] 25/2/2013 21:03

Been adding to their SIPPS recently.

[capt bligh] 25/2/2013 20:52

Founders own too much of this company...doubt they will sell until they want to retire

[battlebus2] 25/2/2013 19:47

Thanks again for the nod about SID amorusso. Hope this works out the same :))

[amorruso] 25/2/2013 19:41

Must now be on the radar of a larger business. No brainer imo!