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PHSC Phsc Plc

26.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Phsc Plc LSE:PHSC London Ordinary Share GB0033113456 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 26.00 25.00 35.00 0.00 07:31:47
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Health & Allied Services,nec 3.44M 243k 0.0220 11.82 2.87M

PHSC Plc Half-year Report

22/11/2022 7:00am

UK Regulatory


 
TIDMPHSC 
 
22 November 2022 
 
                                   PHSC PLC 
 
                    ("PHSC", the "Company" or the "Group") 
 
     Unaudited Interim Results for the six months ended 30 September 2022 
 
PHSC (AIM: PHSC), a leading provider of health, safety, hygiene and 
environmental consultancy services and security solutions to the public and 
private sectors, is pleased to announce its unaudited interim results for the 
six-month period ended 30 September 2022. 
 
GROUP CHIEF EXECUTIVE OFFICER'S STATEMENT 
 
Financial Highlights 
 
  * Group revenue of £1.679m (H1 FY22: £1.719m). 
  * EBITDA of £162k (H1 FY22: £163k including £29k of grant funding). 
  * Earnings per share of 0.90p (H1 FY22: 0.78p). 
  * Cash of £691k (H1 FY22: £902k). 
  * Net asset value (unaudited) of £3.6m following end-of-year write-downs (H1 
    FY22: £4.7m). 
  * Pro-forma net asset value (unaudited) per share of 30.6p, compared to a 
    mid-market share price as at market close on 30 September 2022 of 19p. 
  * Interim dividend declared of 0.5p per ordinary share. 
 
Operational Highlights and Business Outlook 
 
Revenues and EBITDA at the interim stage were little changed from those in the 
same period last year. That said, the contributions from each subsidiary have 
been different with some showing improvement and others below where they 
previously were. All subsidiaries, however, have traded profitably over the 
reporting period. A breakdown of how each subsidiary has performed is set out 
in a separate section of this report below. 
 
All subsidiaries were adversely affected by rising costs in many areas of the 
group's business, in particular in relation to travel and accommodation 
charges. 
 
The Board took the decision to increase salaries in April 2022 and again in 
September 2022, although the latter increase did not impact the halfway stage. 
It was felt important to protect employee wellbeing and livelihoods at a time 
when inflationary pressures had eroded salary values. Staff retention is one of 
the Group's key performance indicators and with a tight labour market our 
longer-term success depends on attracting and retaining staff of the right 
calibre. 
 
The retail sector shows no material signs of returning to pre-pandemic trading 
levels and the Group continues to closely monitor the performance of its B2BSG 
Solutions subsidiary which offers security solutions to that sector. 
Profitability has also been impacted by the weakness of Sterling, as all 
electronic tags and associated systems are purchased from abroad. 
 
There has been a marked improvement in the fortunes of RSA Environmental 
Health, which predominantly sells into the education sector.  This subsidiary 
has seen revenues rise by a third and EBITDA double when compared with the 
first half of the prior financial year as schools have returned to a normal way 
of trading. 
 
Our Personnel Health and Safety Consultants subsidiary saw a marked reduction 
in sales over the equivalent reporting period in 2021, caused by the cessation 
of a Covid-related testing programme that ended when the pandemic abated. This 
led to around 40% lower EBITDA, although the subsidiary continues to trade very 
profitably. 
 
Our leisure sector related subsidiary, Quality Leisure Management, saw revenues 
increased by over a third with EBITDA more than 40% ahead, as activity in 
leisure facilities returned to pre-pandemic levels. 
 
The contribution to revenues from our Scottish subsidiary, QCS International, 
was also higher than last year and there was a corresponding rise in profit. 
 
The Board is confident that the Group is well-placed to deal with the 
circumstances that it will encounter over the remainder of the current 
financial year but acknowledges that cost pressures in an uncertain economic 
environment will create challenges. 
 
Dividend 
 
The Board believes that the Group will remain cash generative and there are 
sufficient cash reserves to enable the payment of an interim dividend. 
Accordingly, the Board has decided to declare an interim dividend of 0.5p per 
ordinary share, to be paid on 13 January 2023, to those shareholders on the 
register of members on 23 December 2022. 
 
Any recommendation by the Board for a final dividend will be subject to the 
Group's full year performance, cash reserves, and the outlook at that time. 
 
Cash Flow 
 
Cash at bank on 30 September 2022 stood at £0.7m compared to approximately £ 
0.9m at the same time last year.  Over the 12 month period since the date of 
the last Interim results, the Company has made dividend distributions totalling 
£130k and undertaken a share buyback costing £312k inclusive of associated 
costs. 
 
Despite no current expectation of having to call upon it, the Group has renewed 
its £50,000 banking facility with HSBC. 
 
The Group has sufficient cash reserves to service the proposed interim dividend 
and all requirements arising in the normal course of business. There are 
currently no additional calls on the Company's cash. It is noted that authority 
was obtained at the last AGM for the Company to potentially undertake a further 
share buyback programme(s), however, no decision has been taken on this matter 
at the present time. 
 
Discrete Performance by Trading Subsidiaries 
 
Profit/loss figures for the individual subsidiaries below are stated before tax 
and inter-company charges (including the costs of operating the parent plc 
which are recovered through management charges levied on, and dividends 
received from, trading subsidiaries), interest paid and received, depreciation 
and amortisation. 
 
Inspection Services (UK) Limited 
Invoiced sales of £95,620 yielding a profit of £4,962 (H1 FY22: £94,392 and £ 
10,923). 
 
Personnel Health and Safety Consultants Limited 
Invoiced sales of £423,253 yielding a profit of £119,478 (H1 FY22: £607,906 and 
£198,579). 
 
RSA Environmental Health Limited 
Invoiced sales of £174,625 resulting in a profit of £32,767 (H1 FY22: £130,953 
and £15,646). 
 
Quality Leisure Management Limited 
Invoiced sales of £192,014 resulting in a profit of £67,769 (H1 FY22: £137,281 
and £37,500). 
 
QCS International Limited 
Invoiced sales of £408,894 yielding a profit of £138,463 (H1 FY22: £356,968 and 
£113,668). 
 
B2BSG Solutions Limited 
Invoiced sales of £384,340 resulting in a profit of £2,825 (H1 FY22: £391,729 
and loss of £16,738). 
 
For further information please contact: 
 
PHSC plc 
Stephen King                                                               Tel: 
01622 717 7000 
Stephen.king@phsc.co.uk 
www.phsc.plc.uk 
 
Strand Hanson Limited (Nominated Adviser)             Tel: 020 7409 3494 
James Bellman/Matthew Chandler 
 
Novum Securities Limited (Broker)                            Tel: 020 7399 9427 
Colin Rowbury 
 
About PHSC 
 
PHSC, through its trading subsidiaries, Personnel Health & Safety Consultants 
Ltd, RSA Environmental Health Ltd, QCS International Ltd, Inspection Services 
(UK) Ltd and Quality Leisure Management Ltd, provides a range of health, 
safety, hygiene, environmental and quality systems consultancy and training 
services to organisations across the UK. In addition, B2BSG Solutions Ltd 
offers innovative security solutions including tagging, labelling and CCTV. 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of 
the European Union (Withdrawal) Act 2018, as amended. 
 
 
 
 
Group Statement of Comprehensive Income              Six months            Six            Year 
                                                          ended         months           ended 
                                                                         ended 
 
                                                     30 Sept 22     30 Sept 21       31 Mar 22 
 
                                           Note       Unaudited      Unaudited         Audited 
 
                                                          £'000          £'000           £'000 
 
Continuing operations 
 
Revenue                                       3           1,679          1,719           3,571 
 
Cost of sales                                             (804)          (888)         (1,939) 
 
Gross profit                                                875            831           1,632 
 
Administrative expenses                                   (744)          (727)         (1,446) 
 
Goodwill impairment                           2               -              -           (793) 
 
Government grants                                             -             29              29 
 
Other income                                                  1              -               - 
 
Profit from operations                                      132            133           (578) 
 
Finance income                                                -              -               - 
 
Profit before taxation                                      132            133           (578) 
 
Corporation tax expense                                    (26)           (27)            (53) 
 
Profit for the period after tax               3             106            106           (631) 
attributable to owners of parent 
 
Total comprehensive income attributable to               106            106          (631) 
owners of the parent 
 
Basic and diluted earnings per share for      5           0.90p          0.78p         (4.76)p 
profit after tax from continuing 
operations attributable to the equity 
holders of the Group during the period 
 
 
 
 
Group Statement of Financial Position          30 Sept 22    30 Sept 21     31 Mar 22 
 
                                                Unaudited     Unaudited       Audited 
 
                                       Note         £'000         £'000         £'000 
 
Non-current assets 
 
Property, plant and equipment             4           462           500           490 
 
Goodwill                                            2,235         3,028         2,235 
 
Deferred tax asset                                     16             2            16 
 
                                                    2,713         3,530         2,741 
 
Current assets 
 
Inventories                                           206           252           186 
 
Trade and other receivables                           660           686           726 
 
Cash and cash equivalents                             691           902           649 
 
                                                    1,557         1,840         1,561 
 
Total assets                              3         4,270         5,370         4,302 
 
Current liabilities 
 
Trade and other payables                              471           460           617 
 
Right of use lease liability                           23            28            31 
 
Current corporation tax payable                        81           115            55 
 
                                                      575           603           703 
 
Non-current liabilities 
 
Right of use lease liability                           14            26            24 
 
Deferred taxation liabilities                          62            51            62 
 
                                                       76            77            86 
 
Total liabilities                                     651           680           789 
 
Net assets                                          3,619         4,690         3,513 
 
Capital and reserves attributable to 
equity holders of the Group 
 
Called up share capital                             1,185         1,468         1,468 
 
Share premium account                               1,916         1,916         1,916 
 
Capital redemption reserve                            426           143           143 
 
Merger relief reserve                                 134           134           134 
 
Treasury shares                                         -         (335)         (645) 
 
Retained earnings                                    (42)         1,364           497 
 
                                                    3,619         4,690         3,513 
 
 
 
Group Statement of Changes in Equity 
 
                                 Share   Share                              Retained 
                               Capital Premium   Merger    Capital          Earnings 
                                                 Relief Redemption Treasury          Total 
                                                Reserve    Reserve   Shares 
 
                                 £'000   £'000    £'000      £'000             £'000    £'000 
                                                                      £'000 
 
Balance at 1 April 2022          1,468   1,916      134        143    (645)      497    3,513 
 
Profit for the period                -       -        -          -               106      106 
attributable to equity                                                    - 
holders 
 
Cancellation of treasury         (283)       -        -        283      645    (645)        - 
shares 
 
Balance at 30 September          1,185   1,916      134        426        -     (42)    3,619 
2022 
 
Balance at 1 April 2021          1,468   1,916      134        143        -    1,258    4,919 
 
Profit for the period                -       -        -          -               106      106 
attributable to equity                                                    - 
holders 
 
Purchase of treasury shares          -       -        -          -    (325)        -    (325) 
 
Cost of share buyback                -       -        -          -     (10)        -     (10) 
 
Balance at 30 September          1,468   1,916      134        143    (335)    1,364    4,690 
2021 
 
 
 
 
Group Statement of Cash Flows                  Six months    Six months           Year 
 
                                                    ended         ended          ended 
 
                                               30 Sept 22    30 Sept 21      31 Mar 22 
 
                                                Unaudited     Unaudited        Audited 
 
                                                    £'000         £'000          £'000 
 
Cash flows generated from operating 
activities 
 
Cash generated from operations                         62            17            313 
 
Tax paid                                                -             -           (89) 
 
Net cash generated from operating                      62            17            224 
activities 
 
Cash flows used in investing activities 
 
Purchase of property, plant and equipment             (2)             -           (22) 
 
Disposal of fixed assets                                -             -              - 
 
Interest received                                       -             -              1 
 
Net cash used in investing activities                 (2)             -           (21) 
 
Cash flows used in financing activities 
 
Payments on right of use assets                      (18)          (17)           (16) 
 
Share buyback                                           -         (335)          (645) 
 
Dividends paid to Group shareholders                    -             -          (130) 
 
Net cash used in financing activities                (18)         (352)          (791) 
 
Net increase/(decrease) in cash and cash               42         (335)          (588) 
equivalents 
 
Cash and cash equivalents at beginning of             649         1,237          1,237 
period 
 
Cash and cash equivalents at end of period            691           902            649 
 
Notes to the cash flow statement 
 
Cash generated from operations 
 
Operating profit - continuing operations              132           133          (578) 
 
Depreciation charge                                    30            30             59 
 
Goodwill impairment                                     -             -            793 
 
Loss on sale of fixed assets                            -             -              2 
 
(Increase)/decrease in inventories                   (20)             8             74 
 
Decrease/(increase) in trade and other                 66          (96)          (136) 
receivables 
 
(Increase)/decrease in trade and other              (146)          (58)             99 
payables 
 
Cash generated from operations                         62            17            313 
 
 
Notes to the Interim Financial Statements 
 
1. Basis of preparation 
 
These condensed consolidated financial statements are presented on the basis of 
International Financial Reporting Standards (IFRS) as adopted by the European 
Union and interpretations issued by the International Financial Reporting 
Interpretations Committee (IFRIC) and have been prepared in accordance with the 
AIM Rules for Companies and the Companies Act 2006, as applicable to companies 
reporting under IFRS. 
 
The financial information contained in this announcement, which has not been 
audited, does not constitute statutory accounts as defined by Section 434 of 
the Companies Act 2006. The Group's statutory financial statements for the year 
ended 31 March 2022, prepared under IFRS, have been filed with the Registrar of 
Companies. The auditor's report for the 2022 financial statements was 
unqualified and did not contain a statement under Section 498 (2) or (3) of the 
Companies Act 2006. 
 
The same accounting policies and methods of computation are followed within 
these interim financial statements as adopted in the most recent annual 
financial statements. 
 
Impairment of goodwill 
 
The Board has considered the carrying value of goodwill and is satisfied that 
the assumptions made at the time of the last adjustment remain valid. 
 
2. Exceptional Administrative Expenses 
 
                                              Six months    Six months    Year ended 
                                                   ended         ended 
 
                                              30 Sept 22    30 Sept 21     31 Mar 22 
 
                                               Unaudited     Unaudited       Audited 
 
Impairment of PHSC plc's investment in             £'000         £'000         £'000 
 
Inspection Services (UK) Limited                       -             -           117 
 
B2BSG Solutions Limited                                -             -           676 
 
                                                       -             -           793 
 
3. Segmental Reporting 
 
                                               Six months     Six months    Year ended 
                                                    ended          ended 
 
                                               30 Sept 22     30 Sept 21     31 Mar 22 
 
                                                Unaudited      Unaudited       Audited 
 
Revenue                                             £'000          £'000         £'000 
 
Security division: B2BSG Solutions Ltd                384            392           749 
 
                                                      384            392           749 
 
Health & Safety division 
 
Inspection Services (UK) Ltd                           96             94           187 
 
Personnel Health & Safety Consultants Ltd             423            608         1,283 
 
Quality Leisure Management Ltd                        192            137           324 
 
RSA Environmental Health Ltd                          175            131           304 
 
                                                      886            970         2,098 
 
Systems division: QCS International Ltd               409            357           724 
 
Total revenue                                       1,679          1,719         3,571 
 
Profit/(loss) after taxation, before 
management charge 
 
Security division: B2BSG Solutions Ltd                 4            (13)           (55) 
 
Health & Safety division 
 
Inspection Services (UK) Ltd                           1               6             10 
 
Personnel Health & Safety Consultants Ltd            102             166            294 
 
Quality Leisure Management Ltd                        56              30             87 
 
RSA Environmental Health Ltd                          25              13             47 
 
                                                     184             215            438 
 
Systems division: QCS International Ltd              107              87            158 
 
Holding company: PHSC plc                          (189)           (183)          (379) 
 
                                                     106             106            162 
 
Goodwill impairment                                    -               -          (793) 
 
Total Group profit after taxation                    106             106          (631) 
 
 
 
 
                                             30 Sept 22    30 Sept 21      31 Mar 22 
 
                                              Unaudited     Unaudited        Audited 
 
Total assets                                      £'000         £'000          £'000 
 
Security division: B2BSG Solutions Ltd              178           292            197 
 
Safety division 
 
Inspection Services (UK) Ltd                         97           108            110 
 
Personnel Health & Safety Consultants Ltd           289           470            630 
 
Quality Leisure Management Ltd                      185           166            226 
 
RSA Environmental Health Limited                    619           584            622 
 
                                                  1,190         1,328          1,588 
 
Systems division: QCS International Ltd             395           337            454 
 
Holding company: PHSC plc                         3,270         4,184          2,826 
 
                                                  5,033         6,141          5,065 
 
Adjustment of goodwill                            (765)         (773)          (765) 
 
Adjustment of deferred tax                            2             2              2 
 
Total assets                                      4,270         5,370          4,302 
 
4. Property, plant and equipment 
 
                                        30 Sept 22      30 Sept 21     31 Mar 22 
 
                                         Unaudited       Unaudited       Audited 
 
                                             £'000           £'000         £'000 
 
Cost or valuation 
 
Brought forward                                928             928           928 
 
Additions                                        2               -            22 
 
Disposals                                        -               -          (22) 
 
Carried forward                                930             928           928 
 
Depreciation 
 
Brought forward                                438             398           398 
 
Charge                                          30              30            59 
 
Disposals                                        -               -          (19) 
 
Carried forward                                468             428           438 
 
Net book value                                 462             500           490 
 
5. Earnings per share 
 
The calculation of the basic earnings per share is based on the following data. 
 
                                        Six months      Six months 
                                             ended           ended    Year ended 
 
                                        30 Sept 22      30 Sept 21     31 Mar 22 
 
                                         Unaudited       Unaudited       Audited 
 
                                             £'000           £'000         £'000 
 
Earnings 
 
Continuing activities                          106             106         (631) 
 
Number of shares                        30 Sept 22      30 Sept 21     31 Mar 22 
 
Weighted average number of shares       11,847,019      13,646,497    13,250,966 
for the purpose of basic earnings 
per share 
 
                                   - ENDS - 
 
 
 
END 
 
 

(END) Dow Jones Newswires

November 22, 2022 02:00 ET (07:00 GMT)

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