Phsc Share Discussion Threads

[galaxy enforcer] 24/12/2019 11:22

Merry Christmas everybody and lot's of profit for 2020

[galaxy enforcer] 23/12/2019 12:46

CJohn I am only stating what the company has stated in the interim's regarding the goodwill.

[cjohn] 23/12/2019 09:00

They made over 1p eps in the first half, even with a poor performance from the most important security division.

If they repeat that in the second half, trading alone would support the current share price, putting aside the strong net cash position and the overall strong asset backing.

If their cutting back on capacity and costs at the security division improves margins, then we'd expect the trading result in the second half to support a higher price.

Of course, the uncertainty and potential disruption around Brexit could have a continuing negative impact on trading.

[value hound] 22/12/2019 17:28

Yes - remember, it's only two years since PHSC were paying 1.5p in divis and the share price was as high as 26.5p (August 2016).

I don't expect any immediate return to that dividend level, but no reason why not within c.two years.

[cjohn] 22/12/2019 17:13

Obviously, writing off goodwill makes no difference to the economic reality of a company. It's an accounting item.

And I can't remember a case of writing off goodwill actually IMPROVING investor attitudes to a company, hence producing a price rise.

Sometimes, where the market has unrealistic expectations of a company, which is therefore trading at very high multiples, writing off goodwill may as a shock induce a sense of realism in investors, who then sell out and so the share price drops.

I wouldn't expect that to happen with PHSC. Sentiment is already negative towards the security division.


If they had a sustained period of decent trading, then the share price could appreciate significantly.

[galaxy enforcer] 19/12/2019 15:55

Yes a prudent move by the company. Now lose some of that goodwill and it will satisfy the markets. Off to see how NSF is doing today.

[cjohn] 19/12/2019 15:46

Cutting back on capacity at the security division should pare losses in that part of the business and improve overall eps in the following sets of results.

As you imply, the dividend is also generous, and, providing trading doesn't collapse, is sustainable.

[galaxy enforcer] 17/12/2019 13:22

Interim dividend comes up early in the New Year.

[galaxy enforcer] 16/12/2019 16:09

I would be quite please with that but only for starters. They can then deliver the main course afterwards. Lightly traded but it does move rather rapidly.

[value hound] 13/12/2019 17:09

My sensible valuation estimate, FWIW, is around 18p mid.

[galaxy enforcer] 13/12/2019 12:07

So it now looks like we are climbing back to a more sensible valuation. Dividend confirmed and will go ex in not too many days.

[galaxy enforcer] 10/12/2019 13:52

Certainly a change online today as my Broker not allowing anything around the size I would like to buy. Maybe will have to take them in dribs and drabs.

[galaxy enforcer] 10/12/2019 10:30

Yes Clohn it does look as though this company could produce some good gains for those invested at this level. Market is bidding for stock and full offer price is now being asked. Could see the offer move with a little buying.

[cjohn] 06/12/2019 11:14

Made decent profit, in spite of v poor trading at the security division.

[cjohn] 06/12/2019 11:13

Even net TANGIBLE asset value is a little above the current market cap. Unusual in an asset-light company of this sort.

Goodwill indicates value, if it reflects economic value. In this case, it surely does. So there'd be no need to "sort it out".


The results were very encouraging, turning a decent profit, in spite of the very poor trading in the security division.

[galaxy enforcer] 05/12/2019 15:54

The current free float of shares is miniscual and hence it does tend to move rather rapidly. Lucky to buy in blocks of 25K when stock is available.

[galaxy enforcer] 05/12/2019 14:34

Having performed further research I will be adding here over a period of time. The dividend is supporting the current price and with the anticipated reduction in goodwill on the books expect to see this turn the corner.

[meijiman] 02/12/2019 14:21

yes decent enough..commentary good as well. No downside now with unchanged divi.

[value hound] 02/12/2019 13:32

More profitable, better cash-flow, 0.5p interim divi - still undervalued, still too small to be listed.

[rossco] 01/12/2019 15:47

Expect interim results to be announced this week. Hopefully sufficient profit to maintain their dividend.

[galaxy enforcer] 27/11/2019 15:42

With less than 15M shares in circulation this stock can move very quickly given the right news. Currently undervalued due to the "goodwill" on the books however this is being addressed. Should see a re-rating once that occurs.

Doubling of the price will still see it undervalued once their house is in order. With a NAV currently around the 35p level first stop should be 20p.

PHSC also pays a bi-annual dividend which helps to support the price.

[galaxy enforcer] 26/11/2019 00:17

Net asset value

As at 31 March 2019, the Group's consolidated net assets stood at GBP5.14m. There
were 14,677,257 ordinary shares in issue at that date which equates to a net
asset value per share of 35p.

We note that the company's ordinary shares continue to trade at a discount to
the net asset value, which we believe to be a response to the high value of
goodwill on the balance sheet. The board reviews the carrying value of
goodwill each year to ensure that the book value is fairly stated and is within
a range commensurate with good accounting practice. As has been noted above,
we resolved to reduce the carrying value of our retail-dependent security
businesses by GBP200,000, something that we also did in the previous year, and
this represents a reduction of approximately 4% in the consolidated net assets
of the Group. The board is satisfied that all other goodwill valuations can
presently be justified.

[galaxy enforcer] 26/11/2019 00:14

We specialise in a diverse range of business sectors, and our integrated approach has enabled us to share and transfer success from one business sector into another. This often provides our customers with innovative solutions by addressing their challenges from a different view point.



Company pays a dividend currently yielding over 9%

[cjohn] 30/9/2019 09:53

Decent AGM statement, with turnover down, because of the fall in turnover in the security division, but EBITDA up because of cost savings, particularly property costs, with the reduction from seven to four premises.

[rossco] 27/9/2019 21:33

Is anyone going to the AGM on Monday?