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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 0.0% 14.00 13.00 15.00 14.00 14.00 14.00 0.00 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Support Services 4.4 0.0 -0.1 - 2

PHSC Plc Interim Results

24/11/2020 7:00am

UK Regulatory (RNS & others)


 
TIDMPHSC 
 
24 November 2020 
 
                                   PHSC PLC 
 
                    ("PHSC", the "Company", or the "Group") 
 
     Unaudited Interim Results for the six months ended 30 September 2020 
 
GROUP CHIEF EXECUTIVE OFFICER'S STATEMENT 
 
Financial Highlights 
 
·          Group revenue for first half of GBP1.377m, down from GBP2.234m last 
year. 
 
·          EBITDA of GBP182k, compared with GBP175k at the halfway stage last year. 
 
·          Earnings per share of 0.83p compared with 1.01p last year. 
 
·          Cash of GBP1.0m compared with GBP756k as at 31 March 2020. 
 
·          Net asset value (unaudited) of GBP5.1m compared to GBP5.0m as 31 March 
2020. 
 
·          Net asset value (unaudited) per share of 34.8p compared to a current 
share price of 12.0p. 
 
·          Interim dividend declared of 0.5p per ordinary share. 
 
Operational Highlights and Business Outlook 
 
The first half of the year has been dominated by the effects of COVID-19 and 
this has led to a marked downturn in demand for the majority of our services, 
with the exception of Personnel Health & Safety Consultants Limited, whose core 
business has continued to provide clients with COVID-19 risk assessments and 
support. 
 
The improved EBITDA would not have been achieved without considerable support 
through the Coronavirus Job Retention Scheme (CJRS) and local authority grants 
of, in aggregate, GBP316k.  However, the Group has not needed to make use of 
repayable financial support such as Government-backed loans and has not called 
upon our GBP50,000 facility with HSBC, which was renewed in October 2020. 
 
Our security company, B2BSG Solutions Limited, was badly hit by the enforced 
closure of non-essential retail premises for much of the period, and the far 
lower demand once shops were gradually allowed to reopen.  Several retail 
clients have reduced the size of their estates, leading to reduced order 
quantities for our security products.  Some national chains who we work with 
are in severe financial difficulty and we expect that this may impact our 
ability to recover debts.  We have therefore made an initial provision of GBP 
10,000 in anticipation of losses due to customer default.  The extent to which 
the business can recover will depend largely on when and whether the high 
street is able to improve its fortunes following the easing of restrictions 
following the second lockdown.  On a positive note, the losses for the period 
were reduced substantially when compared to last year, albeit this was heavily 
supported by the CJRS and grant funding. 
 
Demand for consultancy and training through our QCS International Limited 
subsidiary, which is based in Scotland, was negatively impacted, with both 
revenues and profits reducing by more than a half.  Training income was worst 
hit, with income of approximately GBP40,000 compared with GBP180,000 at the 
half-way stage last year.  Demand for consultancy support held up better than 
expected.  We expect that many clients will look to reinstate deferred training 
courses as soon as it is deemed safe and legal to do so, as determined by 
Scottish legislation. 
 
There have been mixed fortunes in the Safety Division, with Quality Leisure 
Management Limited the worst affected.  The overwhelming majority of clients 
are leisure centres, and this sector was ordered to completely close for most 
of the period.  Funding of these establishments has been severely curtailed. 
 Whilst we have been called up to support some clients who use retainer 
services, the need for additional paid for services has been negligible. 
 
Inspection Services (UK) limited has been largely unaffected by the pandemic 
and the half-year is generally in line with expectations. 
 
RSA Environmental Health Limited, via its SafetyMARK branding, predominantly 
works in the school sector.  With schools closed (other than for limited 
exceptions) in the first wave of the pandemic, training and consultancy 
requirements were minimal.  With schools reopening we anticipate a gradual 
improvement in activity.  A positive point has been our ability to adapt and 
deliver accredited training remotely and this is an income stream that we will 
work to enlarge in the months ahead. 
 
Personnel Health & Safety Consultants Limited enjoyed additional demand for its 
services, notably those related to assisting clients achieve COVID secure 
workplaces.  Our fee-earning staff who were initially furloughed under the CJRS 
have been fully productive since early summer, when the restrictions from the 
first lockdown were eased, and are generally expected to be busy through to the 
end of the calendar year.  We have sought to position ourselves in the 
marketplace as the "go to" health and safety consultancy for COVID-19 support 
and this has resulted in enquiries being at record levels.  This has resulted 
in several organisations using us for the first time and we will look to 
capitalise on these new relationships going forward. 
 
Dividend 
 
The Board is mindful of the fact that the Group has enjoyed considerable 
support from the CJRS together with associated grant funding and that careful 
thought should be given as to whether a distribution is appropriate in these 
circumstances.  However, we are aware that many of our shareholders have 
invested for the historically high yield that our dividend policy has offered 
and during these times we have continued to manage our business carefully.  The 
Board is therefore satisfied that a distribution from retained earnings is 
reasonable and that this would not materially compromise our cash position. 
Accordingly, the Board declares an interim dividend of 0.5p per ordinary share, 
to be paid on 26 February 2021 to those on the register of members on 4 January 
2021. 
 
The recommendation by the Board of any final dividend for the current financial 
year will be subject to the Group's full year performance and the outlook at 
that time. 
 
Cash Flow 
 
Cash at bank on 30 September 2020 stood at GBP1.0m compared to GBP756k as at 31 
March 2020. 
 
Other than in the normal course of business and the proposed and any future 
dividends that might be declared, the Board does not currently anticipate there 
being any additional calls on the Company's cash. 
 
Performance by Trading Subsidiaries 
 
Profit/loss figures for individual subsidiaries are stated after government 
grants, which includes the CJRS, but before tax and inter-company charges 
(including the costs of operating the plc which are recovered through 
management charges to, and dividends from, trading subsidiaries), interest paid 
and received, depreciation and amortisation. 
 
Personnel Health and Safety Consultants Limited 
 
Invoiced sales of GBP381,531 yielding a profit of GBP223,591 (the figures for the 
same period last year were GBP366,657 and GBP139,470). 
 
RSA Environmental Health Limited 
 
Invoiced sales of GBP100,123 resulting in a profit of GBP30,686 (the figures for 
the same period last year were GBP207,524 and GBP50,488). 
 
Quality Leisure Management Limited 
 
Invoiced sales of GBP90,369 resulting in a profit of GBP40,342 (the figures for the 
same period last year were GBP194,295 and GBP58,544). 
 
QCS International Limited 
 
Invoiced sales of GBP196,533 yielding a profit of GBP46,705 (the figures for the 
same period last year were GBP397,832 and GBP142,102). 
 
Inspection Services (UK) Limited 
 
Invoiced sales of GBP113,807 yielding a profit of GBP25,471 (the figures for the 
same period last year were GBP132,613 and GBP35,860). 
 
B2BSG Solutions Limited 
 
Invoiced sales of GBP495,228 resulting in a loss of GBP4,394 (the figures for the 
same period last year were GBP935,356 and GBP56,558 loss). 
 
For further information please contact: 
 
PHSC plc 
 
Stephen King 
01622 717 700 
 
Stephen.king@phsc.co.uk 
 
www.phsc.plc.uk 
 
Strand Hanson Limited (Nominated Adviser)             020 7409 3494 
 
Richard Tulloch / James Bellman 
 
Novum Securities Limited (Broker)                             020 7399 9427 
 
Colin Rowbury 
 
About PHSC 
 
PHSC plc, 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. B2BSG Solutions Ltd offer 
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 Regulations 
(EU) No. 596/2014 ("MAR"). 
 
Group Statement of Comprehensive Income              Six months      Six months             Year 
                                                          ended           ended            ended 
 
                                                     30 Sept 20      30 Sept 19        31 Mar 20 
 
                                           Note       Unaudited       Unaudited          Audited 
 
                                                          GBP'000           GBP'000            GBP'000 
 
Continuing operations 
 
Revenue                                       3           1,377           2,234            4,438 
 
Cost of sales                                             (767)         (1,101)          (2,252) 
 
Gross profit                                                610           1,133            2,186 
 
Administrative expenses                                   (775)           (979)          (1,983) 
 
Goodwill impairment                           2               -               -            (200) 
 
Government grants                                           316               -                - 
 
Profit from operations                                      151             154                3 
 
Finance income                                                1               1                2 
 
Profit before taxation                                      152             155                5 
 
Corporation tax expense                                    (31)             (7)             (21) 
 
Profit/(loss) for the period after tax 
attributable 
 
to owners of parent                           3             121             148             (16) 
 
Total comprehensive income attributable to                 121             148             (16) 
owners of the parent 
 
Basic and diluted Earnings per Share for      5           0.83p           1.01p          (0.11)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 20    30 Sept 19     31 Mar 20 
 
                                              Unaudited     Unaudited       Audited 
 
                                     Note         GBP'000         GBP'000         GBP'000 
 
Non-current assets 
 
Property, plant and equipment           4           565           561           593 
 
Goodwill                                          3,278         3,478         3,278 
 
Deferred tax asset                                   20            18            20 
 
                                                  3,863         4,057         3,891 
 
Current assets 
 
Inventories                                         263           307           264 
 
Trade and other receivables                         753         1,069           886 
 
Cash and cash equivalents                         1,003           688           756 
 
                                                  2,019         2,064         1,906 
 
Total assets                            3         5,882         6,121         5,797 
 
Current liabilities 
 
Trade and other payables                            571           647           623 
 
Right of use lease liability                         34            23            34 
 
Current corporation tax payable                      71            62            40 
 
                                                    676           732           697 
 
Non-current liabilities 
 
Right of use lease liability                         54            54            70 
 
Deferred taxation liabilities                        52            46            51 
 
                                                    106           100           121 
 
Total liabilities                                   782           832           818 
 
Net assets                                        5,100         5,289         4,979 
 
Capital and reserves attributable 
to equity 
 
holders of the Group 
 
Called up share capital                           1,468         1,468         1,468 
 
Share premium account                             1,916         1,916         1,916 
 
Capital redemption reserve                          144           144           144 
 
Merger relief reserve                               134           134           134 
 
Retained earnings                                 1,438         1,627         1,317 
 
                                                  5,100         5,289         4,979 
 
 
 
Group Statement of Changes in Equity 
 
                                Share    Share     Capital    Merger Retained 
                              Capital  Premium  Redemption    Relief Earnings 
                                                   Reserve   Reserve          Total 
 
                                GBP'000    GBP'000       GBP'000     GBP'000    GBP'000  GBP'000 
 
Balance at 1 April 2020         1,468    1,916         144       134    1,317  4,979 
 
Profit for the period               -        -           -         -      121    121 
attributable to equity 
holders 
 
Balance at 30 September 2020    1,468    1,916         144       134    1,438  5,100 
 
Balance at 1 April 2019         1,468    1,916         144       134    1,479  5,141 
 
Profit for the period               -        -           -         -      148    148 
attributable to equity 
holders 
 
Balance at 30 September 2019    1,468    1,916         144       134    1,627  5,289 
 
 
 
 
Group Statement of Cash Flows                Six months    Six months          Year 
 
                                                  ended         ended         ended 
 
                                             30 Sept 20    30 Sept 19     31 Mar 20 
 
                                              Unaudited     Unaudited       Audited 
 
                                                  GBP'000         GBP'000         GBP'000 
 
Cash flows generated from operating 
activities 
 
Cash generated from operations                      264            57           347 
 
Tax paid                                              -             -          (32) 
 
Net cash generated from operating                   264            57           315 
activities 
 
Cash flows used in investing activities 
 
Purchase of property, plant and equipment           (2)          (14)          (39) 
 
Disposal of fixed assets                              -             2             2 
 
Interest received                                     1             1             2 
 
Net cash used in investing activities               (1)          (11)          (35) 
 
Cash flows used in financing activities 
 
Payments on right of use assets                    (16)                        (19) 
 
Dividends paid to group shareholders                  -             -         (147) 
 
Net cash used in financing activities              (16)             -         (166) 
 
Net increase in cash and cash equivalents           247            46           114 
 
Cash and cash equivalents at beginning of           756           642           642 
period 
 
Cash and cash equivalents at end of               1,003           688           756 
period 
 
Notes to the cash flow statement 
 
Cash generated from operations 
 
Operating profit - continuing operations            151           154             3 
 
Depreciation charge                                  30            21            52 
 
Goodwill impairment                                   -             -           200 
 
Loss on sale of fixed assets                          -             3             5 
 
Decrease in inventories                               1            10            52 
 
Decrease/(increase) in trade and other              133          (96)            87 
receivables 
 
Decrease in trade and other payables               (51)          (35)          (52) 
 
Cash generated from operations                      264            57           347 
 
Notes to the 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 report, 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 2020, prepared under IFRS have been filed with the Registrar of 
Companies.  The auditor's report for the 2020 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. Although 
there have been losses in certain subsidiaries in the interim period, the 
Group's performance against the background of COVID-19 has been better than was 
envisaged when the final results were published in August 2020.  The 
longer-term outlook presently remains stable and an impairment charge in these 
interim accounts is not therefore considered necessary but will be reassessed 
at the year end. 
 
Government grants 
 
Government grants represent amounts receivable in relation to the CJRS and 
other COVID-19 related business grants.  The grants have been recognised in the 
period to which the costs relate. 
 
2.      Exceptional Administrative Expenses 
 
                                              Six months    Six months    Year ended 
                                                   ended         ended 
 
                                              30 Sept 20    30 Sept 19     31 Mar 20 
 
                                               Unaudited     Unaudited       Audited 
 
                                                   GBP'000         GBP'000         GBP'000 
 
Impairment of PHSC plc's investment in B2BSG           -             -           200 
Solutions Limited 
 
3.      Segmental Reporting 
 
                                               Six months     Six months    Year ended 
                                                    ended          ended 
 
                                               30 Sept 20     30 Sept 19     31 Mar 20 
 
                                                Unaudited      Unaudited       Audited 
 
Revenue                                             GBP'000          GBP'000         GBP'000 
 
Security division: B2BSG Solutions Ltd                495            935         1,915 
 
                                                      495            935         1,915 
 
Health & safety division 
 
Inspection Services (UK) Ltd                          114            133           231 
 
Personnel Health & Safety Consultants Ltd             382            367           764 
 
Quality Leisure Management Ltd                         90            194           353 
 
RSA Environmental Health Ltd                          100            207           418 
 
                                                      686            901         1,766 
 
Systems division: QCS International Ltd               196            398           757 
 
Total revenue                                       1,377          2,234         4,438 
 
Profit/(loss) after taxation, before 
management charge 
 
Security division: B2BSG Solutions Ltd               (1)            (42)           (61) 
 
Health & safety division 
 
Inspection Services (UK) Ltd                          18              30             33 
 
Personnel Health & Safety Consultants Ltd            183             137            251 
 
Quality Leisure Management Ltd                        33              49             66 
 
RSA Environmental Health Ltd                          25              43             72 
 
                                                     259             259            422 
 
Systems division: QCS International Ltd               33             115            184 
 
Holding company: PHSC plc                          (170)           (184)          (361) 
 
                                                     121             148            184 
 
Goodwill impairment                                    -               -          (200) 
 
Total Group profit/(loss) after taxation             121             148           (16) 
 
 
 
 
                                             30 Sept 20    30 Sept 19      31 Mar 20 
 
                                              Unaudited     Unaudited        Audited 
 
Total assets                                      GBP'000         GBP'000          GBP'000 
 
Security division: B2BSG Solutions Ltd              411           602            429 
 
Safety division 
 
Inspection Services (UK) Ltd                        176           218            166 
 
Personnel Health & Safety Consultants Ltd           581         1,057            413 
 
Quality Leisure Management Ltd                      210           320            220 
 
RSA Environmental Health Limited                    637           684            631 
 
                                                  1,604         2,279          1,430 
 
Systems division: QCS International Ltd             320           765            320 
 
Holding company: PHSC plc                         4,322         3,249          4,375 
 
                                                  6,657         6,895          6,554 
 
Adjustment of goodwill                            (775)         (774)          (757) 
 
Total assets                                      5,882         6,121          5,797 
 
4.      Property, plant and equipment 
 
                                        30 Sept 20      30 Sept 19     31 Mar 20 
 
                                         Unaudited       Unaudited       Audited 
 
                                             GBP'000           GBP'000         GBP'000 
 
Cost or valuation 
 
Brought forward                                949             907           822 
 
Additions                                        2              14           163 
 
Disposals                                        -            (37)          (36) 
 
Carried forward                                951             884           949 
 
Depreciation 
 
Brought forward                                356             334           334 
 
Charge                                          30              21            52 
 
Disposals                                        -            (32)          (30) 
 
Carried forward                                386             323           356 
 
Net book value                                 565             561           593 
 
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 20      30 Sept 19     31 Mar 20 
 
                                         Unaudited       Unaudited       Audited 
 
                                             GBP'000           GBP'000         GBP'000 
 
Earnings 
 
Continuing activities                          121             148          (16) 
 
Number of shares                        30 Sept 20      30 Sept 19     31 Mar 20 
 
Weighted average number of shares       14,667,257      14,667,257    14,667,257 
for the purpose of basic earnings 
per share 
 
 
 
END 
 

(END) Dow Jones Newswires

November 24, 2020 02:00 ET (07:00 GMT)

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