Phsc Share Discussion Threads

[dave4545] 27/5/2021 14:39

Bet the mm's are loving this two way trade.

19.01 to sell online 20.65p to buy bloody hell what a spread

[microscope] 27/5/2021 09:12

Thanks bozzy, really interesting and helpful posts.
Just been going back over a few things. At the start of the buyback, they had just under 15 million shares in issue. So at 20p the market cap would be close to three million. 1.2 million of that is in cash, so a decent chunk.

The dividend annually if maintained costs about 150k.

By a clever bit of accounting I noticed that goodwill impairment sneaks in above the line (don't ask me how!) which magically reduces their tax bill. Goodwill has been 200k a year recently and usually takes them close to an appearance of break even.

There are, I think, seven small businesses under their umbrella, some too small to matter but I'm wary about writing off the goodwill myself, because I think two or three would make nice stand alone small private companies or could be bought by someone else.

I'm actually quite surprised that there have for example been no management buyouts or offers for any of them. Not sure if they own any of the premises incidentally.

Thanks again bozzy. Good stuff.

[dave4545] 27/5/2021 08:53

Looks like the company is in for more stock today.

Opened 19.4-20.98p

Dropped to 19-20.25p, now 19.2-20.25p, mm's do not up the bid on all sales unless they have a buyer which we know is the company to buyback.

They have not issued a Rns yet for yesterday's buys either

[dave4545] 27/5/2021 07:43

Thanks very much bozzy.

Never too old to learn new stuff in this game.

[bozzy_s] 27/5/2021 03:35

Microscope re NAV / NAV per share. You're correct; the NAV per share would increase if they buy back at less than the balance sheet NAV per share. Simplified example:

Company has £5m of net assets, including £1m of cash

Company has 1,000,000 shares, giving a NAV per share of £5

Company buys back 200,000 shares at £4 each

As a result, they now have 800,000 shares and net assets of £4.2m, including £0.2m cash

NAV goes up to £5.25 per share


Dave4545 re goodwill. It looks like much of this is due to businesses PHSC has bought over the years. Anything paid above their NAV would go onto PHSC's balance sheet as intangible assets, along with any intangibles on the acquired business' balance sheet. Simplified example:

Company A makes an acquisition of Company Z, paying £3m in total

Company A has net assets of £10m, including intangibles of £6m

Company Z has net assets of £2m, including intangibles of £1m

Company A still has a net asset value of £10m, but it now includes intangibles of £8m. The net assets stay the same as it spent £3m cash, and got £1m of tangible assets + £2m of intangible assets in return

PHSC's intangibles probably include some business startup / merger costs which can't be put through the Profit & Loss account, plus software development costs etc.

Personally I'd write off intangible assets when making the NAV calculation (I'd go for NTAV - net tangible asset value). For PHSC the intangibles make up about 60% of NAV.

[bozzy_s] 27/5/2021 03:30

This is a fascinating one. Been on my watchlist for years - it's based about 3 miles away from me.

Should've bought when they announced the buyback program. Not usually a fan of buybacks - often a waste of company cash. But being a microcap stock with almost zero free float, buybacks would eliminate the effects of any sells, and enhance the effects of any buys.

Good luck everyone who's in. I see a couple of friendly faces on here.

[dave4545] 26/5/2021 22:17

Looks like they have bought at least 200k more today at the 18p level

[russman] 26/5/2021 19:11

Quite bizarre buyback for such a minute company.
Concert party has to sell to keep %.
Still a large discount to increasing NAV.

[microscope] 26/5/2021 17:51

Can't really see them stopping this side of 25p, and as they buy back at a discount to nav, if my maths is right, the nav will edge up too, so I'm in reality thinking closer to 30p. In truth it's only trading at a discount because it's so small.

Profitable, debt free, cash rich and yielding 5 per cent currently if all else fails. What's not to like.

I'm not anticipating it but probably a justifiable case for trading above nav as most stocks do, so (eventually) a rerating to 40-50p shouldn't be out of the question

All imho

[dave4545] 26/5/2021 15:07

18.35-19.49p rising all the time.

Are those 2 x £5k buys pi's or the company ?

[dave4545] 26/5/2021 14:05

17.5-19.1p online

So perhaps you're right

[zangdook] 26/5/2021 14:04

If I've got the average closing prices right, which is a big if as I've tried to get them from advfn's trade pages, the maximum they can pay today is 17.6925.

[zangdook] 26/5/2021 13:46

...and we're off

[dave4545] 26/5/2021 10:59

Something has to give

16.65-18p at the open

Now 16.8-18p so bid again is starting to rise as they try and fill the buybacks

[dave4545] 26/5/2021 07:47

Never seen a company so small do buybacks this must be a record.

Stock might get really tight, directors hold around 45% alone.

[zangdook] 26/5/2021 07:18

If they did buy back the full number of shares, a notifiable holding would be 374,271 by my calculation.

[zangdook] 26/5/2021 07:13

Now that's what I call a buyback, 3% in a day. Unfortunately the limit of £325,000 will stop the programme before they reach the permitted 15%, but then there was probably never much prospect of that.

[dave4545] 25/5/2021 19:56

Think they might tomorrow

Bid chased up, sellers paid 16.9p and company buys them back for 17p looking at the 100k blocks.

We'll see if that is right tomorrow if a Rns or not

[russman] 25/5/2021 19:40

Buybacks have to be reported. Volume up.

[dave4545] 25/5/2021 13:37

16.52p bid now for size. Certainly moving in the right direction

[dave4545] 25/5/2021 13:22

Quite a big flip in the book in the last 10 mins.

Perhaps the broker is finally trying to buyback stock as promised.

I'm getting 16.36p bid for size now which is a big difference from what people were selling at first thing which is 15p.

And almost full 17p offer online so book really has turned there

[dave4545] 20/5/2021 20:23

Quiet stock that if it were to go higher from here it's reaching a level not seen
since 2016 so a 5 year high if so

[dave4545] 20/5/2021 14:30

Few nibbles

16.1-17.24p online

[russman] 18/5/2021 05:15

Probably on a VRAP so the price does not get pushed more.
Good idea for illiquid; although self defeating.

[ntv] 17/5/2021 16:15

Hi Cjohn
I thought as you have control over the account especially if you are a nominated person to carry out the trading on the accounts then you are deemed to be a concert party?
I also do similar for 2 other people
Might be worth clarifying with the company secretary your position