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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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.50 | 2.27% | 22.50 | 21.00 | 24.00 | 22.50 | 22.00 | 22.00 | 12,182 | 12:28:08 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Health & Allied Services,nec | 3.44M | 243k | 0.0220 | 10.23 | 2.48M |
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TIDMPHSC
5 December 2018
PHSC PLC
("PHSC", the "Company", or the "Group")
Unaudited Interim Results for the six months ended 30 September 2018
GROUP CHIEF EXECUTIVE OFFICER'S STATEMENT
Financial Highlights
* Group turnover for first half of GBP2.897m, down from GBP3.720m last year
* EBITDA of GBP285k (inclusive of gain on disposal of property of GBP150k)
compared with GBP197k profit at the half way stage last year
* Earnings per share of 1.47p compared with 1.08p last year
* Cash of GBP583k compared with GBP129k last year
* Net asset value (unaudited) of GBP5.503m
* Pro-forma net asset value (unaudited) per share of 37.5p compared to a
current share price (mid) of 12.25p
* Interim dividend declared of 0.5p per ordinary share
Operational Highlights
* Acceleration of plans to bring the Group's security businesses under one
roof
* Disposal of the property formerly used by Adamson's Laboratory Services
Limited (ALS), the Group's asbestos subsidiary which was discontinued in
March 2018 generating a gain of GBP150k
* Investment in extended training area and office facilities for QCS
International Limited (QCS)
* Two leased premises to be vacated in Q3/Q4 resulting in ongoing cost
savings
Business overview
The Group achieved revenues of GBP2.897m in the first half, compared to GBP3.720m
last year. The decrease in revenues relates mainly to a reduction in revenues
from the Group's security division, as detailed below, and no revenues being
generated during the period from ALS, the Group's asbestos management business
which ceased in March 2018 and which had revenues of GBP0.382m last year.
Having ceased its asbestos management activities, the Group disposed of its
associated property in Essex for GBP305,000, as announced on 28 September 2018.
The book value at that date was approximately GBP133,000 representing a gain of
approximately GBP166,000 after sale fees and legal costs. Charges have been
incurred for ending services and leasing equipment agreements associated with
the property, and disposal of contents, resulting in an overall positive
contribution of approximately GBP150,000.
EBITDA, without the benefit of this gain, would have been GBP119,000 over the
period, a reduction of GBP78,000 on last year. The main variance relates to
reduced revenues and profits at our security division, which has been impacted
by reduced orders from its largest client whilst that client re-evaluates its
own strategy. A breakdown of revenues and EBITDA by subsidiary is given below.
At the start of the current financial year, we merged the Group's security
businesses, B to B Links Limited (B to B) and SG Systems (UK) Limited (SG),
into a single corporate entity, B2BSG Systems Limited. As the year has
progressed, we have been taking steps to fully integrate both parts of the
business. This involves streamlining the office and accounting functions,
creating a single sales team and having a combined engineering department
responsible for installations and servicing. These operations will be managed
from the Finchampstead, Berkshire premises, and we have given notice to
terminate our lease at the Amesbury, Wiltshire office and warehouse formerly
used by SG. In the short term, this amalgamation and streamlining process will
involve some costs but longer term will give the business a lower overhead.
The lease on the office used by Quality Leisure Management Limited (QLM) in
Northleach expires on 31 December 2018. QLM will relocate to Raunds,
Northamptonshire, where it will share Group-owned premises currently occupied
by another subsidiary, RSA Environmental Health Limited (RSA). This will lead
to lower fixed costs going forward though there will be certain relocation and
redundancy expenses borne in Q3.
Our Scottish subsidiary, QCS, has taken on additional premises adjacent to its
existing unit, which has also had its lease renewed. We have invested
approximately GBP50,000 in refurnishing and modernising both units to improve and
expand the training facility, so that larger numbers of delegates can attend
courses where appropriate. A secondary training area has also been created,
providing the ability to run more than one course at the same time.
The Group continues to suffer from a general inertia and level of uncertainty
in its client base ahead of clarification on the implications and impacts of
Brexit. As we have repeatedly reported, the weakness of Sterling impacts
particularly on our security business, which relies upon imported equipment
purchased in US Dollars and Euros.
Outlook
The majority of the Group's revenues arise from its security division and this
is heavily weighted towards the retail sector. Our security business is highly
regarded within the retail sector and recently won the Highly Commended Award
in the "Vendor of the Year" category at the Retail Risk Fraud Awards. We are
well-placed to deliver security solutions to the sector and have a number of
key partnerships with national accounts.
Trials and tribulations on the high street are well publicised and we are not
insulated from this. Until retailers have emerged from the Christmas period
they are unlikely to consider meaningful investment in their stores, partly
because of financial uncertainties but also because they do not want work going
on in store during the peak period. This means we always see a tail-off in
activity as we approach the festive period and as a result of the general
weakness in the sector, we have reduced visibility for the start of calendar
year 2019.
Our health and safety businesses are all trading profitably and we expect this
to continue for the second half of the financial year. Levels of contract
renewal at QLM, Inspection Services (UK) Limited and Personnel Health and
Safety Consultants Limited remain high. The main activity of RSA continues to
be the delivery of safety-rated training and advice to the education sector and
the subsidiary intends to refresh its offering over the coming months.
With the new investment in QCS's premises and management's steps to improve and
expand the range of courses that they offer, we are confident of seeing
improved results going forward. QCS, which delivers training and consultancy
in management and quality systems, is recognised as a leader in its field.
Dividend
In view of the gain arising from the sale of the property relating to the
discounted asbestos operations and the resulting strengthening of our balance
sheet, the board has decided to declare an interim dividend of 0.5p per
ordinary share, to be paid on 28 February 2019 to those on the register of
members on 4 January 2019.
The recommendation by the board of any final dividend for the current financial
year will be subject to the Group's full year performance.
Cash Flow
Cash at bank on 30 September 2018 stood at GBP583k compared with GBP129k at the
same time last year.
Given our improved cash position, we have reduced our (currently unused)
banking facility from GBP300,000 to GBP150,000, as we see this as being adequate
for our foreseeable needs and results in a lower facilitation fee.
Other than in the normal course of business, the board does not currently
anticipate there being any additional calls on the Company's cash.
Performance by Trading Subsidiaries
Profit/loss figures for each of the Group's subsidiaries are stated before tax
and inter-company charges (including the costs of operating the plc which are
recovered through management charges to trading subsidiaries), interest paid
and received, depreciation and amortisation.
Inspection Services (UK) Limited
Invoiced sales of GBP108,600 yielding a profit of GBP19,100 (the figures for the
same period last year were GBP108,700 and GBP25,200).
Personnel Health and Safety Consultants Limited
Invoiced sales of GBP311,100 yielding a profit of GBP123,800 (the figures for the
same period last year were GBP317,600 and GBP123,900).
RSA Environmental Health Limited
Invoiced sales of GBP190,600 resulting in a profit of GBP27,500 (the figures for
the same period last year were GBP174,600 and GBP20,900).
Quality Leisure Management Limited
Invoiced sales of GBP218,300 resulting in a profit of GBP47,000 (the figures for
the same period last year were GBP203,000 and GBP52,300).
QCS International Limited
Invoiced sales of GBP363,500 yielding a profit of GBP111,300 (the figures for the
same period last year were GBP372,100 and GBP145,900).
B2BSG Solutions Limited
Invoiced sales of GBP1,705,100 yielding a profit of GBP65,300 (the combined figures
across B to B and SG over the same period last year were GBP2,260,500 and GBP
189,100).
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/Frederick Twist
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 Systems 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.
Group Statement of Comprehensive Income Six Six Year
months months ended
ended ended
30 Sept 30 Sept 31 Mar 18
18 17
Note Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Continuing operations
Revenue 3 2,897 3,720 7,013
Cost of sales (1,494) (1,994) (3,938)
Gross profit 1,403 1,726 3,075
Administrative expenses (1,298) (1,546) (3,042)
Goodwill impairment 2 - - (200)
Other income - - 25
Profit on disposal of fixed assets 166 - -
Profit/(loss) from operations 271 180 (142)
Finance costs (1) (2) (4)
Profit/(loss) before taxation 270 178 (146)
Corporation tax expense (54) (19) (15)
Profit/(loss) for the period after tax attributable
to owners of parent 3 216 159 (161)
Total comprehensive income attributable to 216 159 (161)
owners of the parent
Basic and diluted Earnings per Share for 5 1.47p 1.08p (1.09p)
profit/(loss) after tax from continuing
operations attributable to the equity
holders of the Group during the period
Group Statement of Financial Position 30 Sept 30 Sept 31 Mar 18
18 17
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Non-current assets
Property, plant and equipment 4 453 620 594
Goodwill 3,678 3,878 3,678
Deferred tax asset 22 22 22
4,153 4,520 4,294
Current assets
Inventories 379 492 389
Trade and other receivables 1,404 1,880 1,569
Cash and cash equivalents 583 129 244
2,366 2,501 2,202
Total assets 3 6,519 7,021 6,496
Current liabilities
Trade and other payables 889 1,239 1,137
Current corporation tax payable 71 19 16
Contingent consideration - 25 -
960 1,283 1,153
Non-current liabilities
Deferred taxation liabilities 56 58 56
56 58 56
Total liabilities 1,016 1,341 1,209
Net assets 5,503 5,680 5,287
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 1,841 2,018 1,625
5,503 5,680 5,287
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 2018 1,468 1,916 144 134 1,625 5,287
Profit for the period - - - - 216 216
attributable to equity holders
Balance at 30 September 2018 1,468 1,916 144 134 1,841 5,503
Balance at 1 April 2017 1,468 1,916 144 134 1,859 5,521
Profit for the period - - - - 159 159
attributable to equity holders
Balance at 30 September 2017 1,468 1,916 144 134 2,018 5,680
Group Statement of Cash Flows Six Six Year
months months
ended ended ended
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cash flows generated from/(used by) operating
activities
Cash generated from/(used by) operations 48 (66) 143
Interest paid (1) (2) (4)
Tax paid - - -
Net cash generated from/(used by) operating 47 (68) 139
activities
Cash flows from/(used in) investing activities
Purchase of property, plant and equipment (8) (10) (19)
Disposal of fixed assets (net of disposal 300 - 15
costs)
Net cash from/(used in) investing activities 292 (10) (4)
Cash flows used in financing activities
Payment of contingent consideration - - (25)
Dividends paid to group shareholders - - (73)
Net cash used in financing activities - - (98)
Net increase/(decrease) in cash and cash 339 (78) 37
equivalents
Cash and cash equivalents at beginning of 244 207 207
period
Cash and cash equivalents at end of period 583 129 244
Notes to the cash flow statement
Cash generated from/(used by) operations
Operating profit/(loss) - continuing operations 271 180 (142)
Depreciation charge 13 16 34
Goodwill impairment - - 200
Profit on sale of property (166) - -
Loss on sale of other fixed assets 3 - 1
Decrease/(increase) in inventories 10 (4) 98
Decrease/(increase) in trade and other 165 (433) (121)
receivables
(Decrease)/increase in trade and other payables (248) 175 73
Cash (used by)/generated from operations 48 (66) 143
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 2018, prepared under IFRS have been filed with the Registrar of
Companies. The auditors' report for the 2017 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.
New IFRS standards and interpretations not adopted
A number of new standards and amendments to standards and interpretations have
been issued but are not yet effective and in some cases have not been adopted
by the European Union. IFRS 16 may have an impact on the measurement and
treatment of operating leases and the related disclosures. As at 31 March 2018
the estimated impact of the transition to IFRS 16 would be to increase tangible
fixed assets and liabilities by approximately GBP52,000. The impact on the
statement of comprehensive income is not expected to be material to the
financial statements. IFRS 9 is not expected to have a material impact on the
financial statements of the group entities.
The information presented within these interim financial statements is in
compliance with IAS 34 "Interim Financial Reporting". This requires the use of
certain accounting estimates and requires that management exercise judgement in
the process of applying the Group's accounting policies. The areas involving a
high degree of judgement or complexity, or areas where the assumptions and
estimates are significant to the interim financial statements are disclosed
below:
Impairment of goodwill
The Board has considered the carrying value of goodwill and although there have
been losses in certain subsidiaries in the interim period the longer term
outlook remains stable and an impairment charge in these interim accounts is
not therefore considered necessary and will be reassessed at the year end.
2. Exceptional Administrative Expenses
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Impairment of PHSC plc's investment - - 200
in
B2B Links Limited
3. Segmental Reporting
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
Revenue GBP'000 GBP'000 GBP'000
Security division
B to B Links Ltd - 1,522 2,777
SG Systems (UK) Ltd - 738 1,449
B2BSG Solutions Ltd 1,705 - -
1,705 2,260 4,226
Health & safety division
Inspection Services Ltd 109 109 216
Personnel Health & Safety Consultants Ltd 311 318 616
Quality Leisure Management Ltd 218 203 439
RSA Environmental Health Ltd 191 175 370
829 805 1,641
Quality systems division: QCS International 363 372 768
Ltd
Discontinued: Adamson's Laboratory Services - 283 378
Ltd
Total revenue 2,897 3,720 7,013
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
Profit/(loss) after taxation, before management GBP'000 GBP'000 GBP'000
charge
Security division
B to B Links Ltd - 166 78
SG Systems (UK) Ltd - (21) (96)
B2BSG Solutions Ltd 62 - -
62 145 (18)
Health & safety division
Inspection Services Ltd 17 22 46
Personnel Health & Safety Consultants Ltd 114 114 240
Quality Leisure Management Ltd 41 45 112
RSA Environmental Health Ltd 26 21 75
198 202 473
Quality systems division: QCS International Ltd 100 122 268
Discontinued: Adamson's Laboratory Services Ltd - (75) (163)
Holding company: PHSC plc (156) (257) (522)
204 137 38
Taxation adjustment (group loss relief and 12 22 1
deferred tax)
Goodwill impairment - - (200)
Total Profit/(loss) after taxation, before 216 159 (161)
management charge
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
Total assets GBP'000 GBP'000 GBP'000
Security division
B to B Links Ltd - 1,385 1,233
SG Systems (UK) Ltd - 346 155
B2BSG Systems Ltd 1,112 - -
1,112 1,731 1,388
Safety division
Inspection Services Ltd 233 196 177
Personnel Health & Safety Consultants Ltd 689 776 780
Quality Leisure Management Ltd 258 250 309
RSA Environmental Health Limited 619 589 663
1,799 1,811 1,929
Quality division: QCS International Ltd 568 539 677
Discontinued: Adamson's Laboratory Services 18 271 85
Ltd
Holding company: PHSC plc 4,146 4,005 3,586
7,643 8,357 7,665
Adjustment of goodwill (1,124) (1,336) (1,169)
Total assets 6,519 7,021 6,496
4. Property, plant and equipment
30 Sept 18 30 Sept 17 31 Mar 18
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Cost or valuation
Brought forward 934 1,066 1,066
Additions 8 10 19
Disposals (163) (7) (151)
Carried forward 779 1,069 934
Depreciation
Brought forward 340 440 440
Charge 13 16 34
Disposals (27) (7) (134)
Carried forward 326 449 340
Net book value 453 620 594
5. Earnings per share
The calculation of the basic earnings per share is based on the following data.
30 Sept 18 30 Sept 17 31 Mar 18
GBP'000 GBP'000 GBP'000
Unaudited Unaudited
Earnings
Continuing activities 216 159 (161)
Number of shares 30 Sept 18 30 Sept 17 31 Mar 18
Weighted average number of shares 14,677,257 14,677,257 14,677,257
for the purpose of basic earnings
per share
END
(END) Dow Jones Newswires
December 05, 2018 02:00 ET (07:00 GMT)
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