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 Trading Update and Commentary on COVID-19 Impact

13/05/2020 7:00am

UK Regulatory (RNS & others)

13 May 2020 
                                   PHSC PLC 
               Trading Update and Commentary on COVID-19 Impact 
PHSC plc ("the Group"), a leading provider of health, safety, hygiene and 
environmental consultancy services and security solutions to the public and 
private sectors, announces an update on its performance for the financial year 
ended 31 March 2020.  The Group also provides an update on how it is being 
impacted by the COVID-19 pandemic. 
Trading for the year ended 31 March 2020 
Unaudited management accounts for the year ended 31 March 2020 show 
consolidated Group revenue of approximately GBP4.43 million (31 March 2019: GBP5.21 
million) and EBITDA of approximately GBP280,000 for the period (31 March 2019: GBP 
116,000 prior to exceptional gain from property sale). 
Revenues for the year ended 31 March 2020 were, as with the interim results, 
impacted by a reduction in revenues from the Group's security division, as the 
retail sector continued to struggle.  In line with the interims, this has 
resulted in the security division accounting for approximately 40% (31 March 
2019: 52%) of the Group's revenues, with the Group's health, safety and 
management systems businesses accounting for approximately 60% (31 March 2019: 
48%) of Group revenues. 
EBITDA margin though increased as a result of lower overheads and 
premises-related savings across the Group.  In addition, the Group's health, 
safety and management systems companies contributed higher profits and whilst 
the security division continued to be loss-making in a challenging environment, 
it reduced its year-on-year losses by a third.  Full details about the 
performances of individual subsidiaries will be given at the time we announce 
our final results for the year ended 31 March 2020. 
Cash at bank as at 11 May 2020 was approximately GBP850,000, though it should be 
noted that the Group has taken advantage of the opportunity to defer payment of 
GBP163,000 of VAT relating to Q4 of 2019/20 under the Government's COVID-19 
scheme.  In addition, as set out below, the Group has furloughed a number of 
its staff under the Government's Job Retention scheme.  The Group also has a GBP 
150,000 overdraft facility with HSBC which is presently unused. 
The above financial information is drawn from the Group's management accounts 
and is subject to audit and therefore may change.  The Group currently expects 
to announce its final results for the year ended 31 March 2020 by mid-August 
2020.  In line with its obligations and as part of the audit process, the Board 
will consider whether any impairment provisions are necessary within the 
Group.  This will require a judgement as to what provision is appropriate in 
the normal course of events and what the post-COVID-19 landscape will look 
Impact of COVID-19 
The COVID-19 pandemic has had an adverse impact on the year ended 31 March 
2020, though not to a material extent.  The financial consequences of COVID-19 
will be seen in 2020/21, though are at this stage very difficult to quantify 
due to the uncertainty of how the UK economy will emerge from the current 
restrictions in place as a result of COVID-19.  As set out above, the Group 
enjoys a strong cash position, even after allowing for the deferred VAT 
obligation and the Board currently does not expect to have to use the Group's 
overdraft facility. 
The Group has sought to reduce its costs and has taken advantage of the 
Government's Job Retention scheme, with approximately half of its staff 
furloughed at any one time.  In addition, as set out below, the Group continues 
to provide certain services to clients where it is viable to do so and in 
compliance with current Government guidelines.  The Group's priority at this 
time is to ensure the health, safety and wellbeing of its customers and staff. 
PHSC plc has furloughed one part-time accounts administrator.  One 
Non-executive Director is currently shielding on Government advice and has been 
furloughed, though is available to carry out statutory functions as required. 
Other Directors, although still working, have voluntarily reduced their 
salaries by 20% for the duration of the Government's Job Retention scheme. 
Different Group subsidiaries have been affected in different ways.  Quality 
Leisure Management Limited and RSA Environmental Health Limited ordinarily 
supply the leisure industry and the education sector respectively.  These types 
of premises are all effectively closed and this has meant that the majority of 
staff at these subsidiaries have been furloughed.  The remaining staff have 
been working hard to convert certain training courses, normally delivered 
face-to-face, so that they can be delivered remotely.  There has been some 
early interest in this new way of operating and we hope to see further progress 
QCS International Limited continues to service many of its clients and is able 
to conduct a number of consultancy and training activities remotely.  Efforts 
are being made to deliver courses remotely where appropriate, and to hold some 
courses at the company's training room, where social distancing can be 
achieved.  Ultimately the success of public training at our venue will depend 
on clients' appetites for moving towards a more normalised situation.  This 
subsidiary is in Scotland and will be required to comply with the national 
strategy to tackle COVID-19, which may vary from the rest of Group's operations 
which are based in England. 
Inspection Services (UK) Limited staff are deemed as key workers, as they 
perform the essential function of carrying out statutory examinations of plant 
and equipment.  Unlike with motor vehicles, where there has been a six-month 
extension to the validity of MOT test certificates, the Government has not 
relaxed the examination frequencies for lifting equipment and for pressure 
systems.  Those workplaces that have been mandated to close, or have opted to 
close, have been advised to facilitate access to enable examinations to take 
place as normal.  Most work is therefore continuing, though there has been some 
disruption to normal sequencing and the efficiency with which visits can be 
Personnel Health and Safety Consultants Limited has furloughed a small number 
of staff, as it adjusts to a reduced workload.  In common with other 
subsidiaries offering consultancy support, there is a certain amount of 
retainer income that continues to be received.  This subsidiary has also moved 
to convert some training courses so they can be delivered via online platforms. 
All except two employees at the Group's security subsidiary, B2BSG Solutions 
Limited, have been furloughed.  The security division focuses almost 
exclusively on the retail sector, which has been impacted by the closure of all 
non-essential retail premises.  There is a small order volume relating to 
clients who sell food and to non-retailers, though most revenue ceased once the 
lockdown was introduced.  Headcount within the division has also been reduced, 
in anticipation of weaker customer demand once stores are given permission to 
reopen, with three out of the division's 11 employees having been declared 
redundant.  The Board currently anticipates that by that time, consumer 
behaviour will have changed and the trend to online shopping will have 
accelerated, and that there will be a greater number of store closures on the 
high street. 
The Group will continue to keep all measures under review, prioritising the 
safety of all of its stakeholders and will keep shareholders updated as 
For further information please contact: 
PHSC plc 
Stephen King 
01622 717 700 
Strand Hanson Limited (Nominated Adviser)              020 7409 3494 
Richard Tulloch / James Bellman 
Novum Securities Limited (Broker)                             020 7399 9427 
Colin Rowbury 
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. 
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 Limited 
offers innovative security solutions including electronic tagging, labelling 
and CCTV. 

(END) Dow Jones Newswires

May 13, 2020 02:00 ET (06:00 GMT)

1 Year Phsc Chart

1 Year Phsc Chart

1 Month Phsc Chart

1 Month Phsc Chart
ADVFN Advertorial
Your Recent History
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20210306 11:25:04