Phsc Share Discussion Threads

[egoi] 12/9/2008 07:50

Profits set to fall:

'...The directors of PHSC announce that group revenues for the four months to 31
July 2008 were £1,645,735 compared to £1,668,413 for the same period last year,
representing a modest decline of 1.5%.

This resulted in a pre-tax profit for the four months to 31 July 2008 of £
164,512 (unaudited, and prior to amortisation of goodwill) as against £254,906
or the same period of last year.

In announcing the latest figures, Stephen King, Chief Executive Office of PHSC,
said: "In the current economic climate, the board is satisfied that revenue has
been maintained at virtually the same level as last year. Although gross
margins are higher, the effect of increased administrative costs in areas such
as staff salaries, transportation and utilities has meant a reduction in
pre-tax profits. Now is not the time to try and recover the shortfall through
higher fees charged to clients."

Based on the current order book and subsidiaries' projections, the board is
expecting that revenues from continuing operations in the current financial
year will be approximately £5,000,000 and profits from continuing operations
will come in at around £600,000 before tax. Revenues and profits will therefore
likely be below market expectations...'

Disappointing, but still leaves the company on a p/e of 8 but with hint of continuing tough conditions and most to be made in the second half, the possibility of another warning I suppose lurks in the undergrowth.

Perhaps the most significant phrase is:
'Now is not the time to try and recover the shortfall through
higher fees charged to clients.'

That indicates to me no recovery soon.

[longtech] 29/8/2008 08:36

My buy was recorded at a sell,I was suprised it was filled.
So there must be a small surplus with the market makers.

[battlebus] 28/8/2008 21:01

Still holding a good few of these and know it will take time to bear fruit but like yourself still believe in this company so see no reason to sell. Not buying any more even at sub 40p till purchases are made if they are made.

[longtech] 28/8/2008 14:11

Market Cap £4.52 million
£1.3 million in cash - albeit about to buy two more companies.
Owe £90,000 on their properties
Had so much cash, they reduced property borrowings from £370,000 to £90,000
Also bought back and cancelled over 136,000 shares.
Made £521,000 profit after tax.
Pay a modest Dividend, 0.85 pence this year.

I know we are in a deepening recession, that they have pressure on margins
and I won't see the benefits of holding PHSC for a few years.

However bought a few more today at what I think was a steal, appreciate no one
else is interested.
Seems to be a floor on the price, with the company buying and cancelling.

Trying to find any negatives - strikes me as very defensive.
Can anyone challenge my rosy view of PHSC.

[battlebus] 25/6/2008 19:00

Just in from a long day and was initially disappointed but with further reading this set of results ain't bad. The key as you say Walker is the aquisitions that must now be pursued at a reasonable cost. The divi increase although slight now 2.2% is still a vote of confidence and like you i will be sitting tight and maybe averaging down a bit if the price falls again. I have a gut feeling another purchase is already being explored.

[capt bligh] 25/6/2008 13:32

Strange eps figures compared with last year:

PHSC PLC Preliminary Results 2006/07

MANAGING DIRECTOR'S STATEMENT

for the year ended 31 March 2007

Highlights:

- Pre-tax profits (net of goodwill) up from £411,000 to £634,000
- Earnings per share rise from 2.6p to 3.67p

[walker10] 25/6/2008 13:22

Oh the joy of investing in small caps or in any caps at the moment, overall as capt said above not a disaster by any means this is the bit I could worry about:

"We are finding that the pricing of health and safety consultancy services is
becoming more competitive, and margins are under pressure".

However two purchases that will counter any slack.

I will sit tight.

[egoi] 25/6/2008 13:06

GHF have to agree with your initial synopsis. Bit of a mixed bag. Talk of greater competition and margin pressures too. They say themselves growth will be heavily dependent on completing the two acquisitions mentioned, and I can see stagnation here overall. The first two months revenues are around 12% up on last year, but if margin pressures are biting then I guess profit will be broadly similar.

Good that they've reduced debt on property which will increase real assets, but then again a shame that key acquisition earlier this year didn't proceed.

So I can see 4.5 - 5p for next year, a p/e of about 8-9 at 40p. Still very solid value and probably not a load of downside, but can't see a great deal of upside either, especially with sentiment as it is for microcaps right now, and a lot of goodwill that will need to be written down sooner or later.

Not currently holding but if they fell too far I'd be interested in getting back in.

[capt bligh] 25/6/2008 12:42

Well didn't call that very well oh dear, still the results are hardly a disaster lots of cash generated a bigger tax burden though. Wonder if they will step in and buy some shares. Strange it makes a bigger post tax profit, has fewer shares than last year but the eps goes backwards.

[glasshalfull] 25/6/2008 12:24

Seems the market agree and also the difficulties in reducing a holding in illiquid small caps......10k just sold @ 37p when the bid was 40p.

Regards,
GHF

[glasshalfull] 25/6/2008 12:21

Results out.

They appear disappointing at first glance.......organic growth seems to have ground to a halt.
Will comment further when I've had time to sift through them.

Not currently holding but they remain on my watchlist.

Regards,
GHF

[battlebus] 23/6/2008 18:49

Thanks for the reply Walker i know nothing much has happened of late but the fundamentals of this business are sound and i'm sure one day soon our faith in this company will be rewarded. I have been adding small amounts when i could at around 44p but capt bligh put stop to that raising the offer to 47p. Anyway lots of excitement to be found with other shares at the moment if you know what i mean.

[walker10] 23/6/2008 18:33

Yes battle I am still on board - but they are beginning to send me to sleep!!!

[capt bligh] 19/6/2008 09:08

That was my 20k... I agree in principle with all you have said I am not expecting a huge surge, but that said.. the risk of it falling seems low and the all the figures PEG PE etc look compelling, also the shares are thinly traded and any interest will get it moving big time IMV

[battlebus] 18/6/2008 21:06

As you say capt bligh we are nearing results date and they should be very positive. I still hold quite a few of these and expect to hold them for the long term as the market has no interest in these shares at present but at some stage that will change whether an increase in market cap or what. Until then i'm prepared to wait if i remember last years results were great also and the shares were around 57p now they are 47p so even if results impress don't expect a sharp rise in shareprice. Good luck to whoever bought the 20000 today if it wasn't a company buy back.

[capt bligh] 18/6/2008 16:19

Results should be soon and they should be very good indeed. Bear in mind company has loads of cash c 1.5mill + two freeholds on the books at c 800k, hardly any long term debt which with deferred tax is easily covered by stocks. It generated 555k profit before tax in the first three quarters of the financial year ( 191k in last quarter alone) Market cap 4.41 million. Enterprise value = 2.3 million. Also company cancelling shares at the 43p level looks to have established a good floor. This company is a major bargain? surely? Also is too small to spreadbet... I tried.

[papalpower] 30/5/2008 09:33

More of the same would be good.

[battlebus] 30/5/2008 08:10

YEP a nice little contract. They just need to keep them coming.

[omerta] 30/5/2008 07:55

+ 1p pre - market ~ ~ ~ Gosh!

[omerta] 30/5/2008 07:53

£300/- contract win over 3 yrs for Isle of Wight Council

[battlebus] 17/5/2008 16:55

Just dormant Mudbath about to erupt anytime!

[mudbath] 17/5/2008 11:58

With the share price graph flatlining,can I take it that PHSC has died??

[walker10] 07/4/2008 08:35

This new law will only helps the likes of PHSC:



Also the HSE is running a national campaign called shattered lives- there was a quarter page ad in the Sunday Teegraph yesterday.



They are banging the drum re saftey in the work place.

[papalpower] 20/3/2008 17:46

Ahhh that one, I know.

RAS was a cracker, got away too cheap. As did BOI.

Its the thing when these companies get undervalued, makes them ripe targets for takeovers (or of course oblivion).