PHSC Plc - Trading Update

PHSC PLC
 

Trading Update

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 2017.

The information derives from management accounts and is subject to audit.  We expect to issue our Final Results announcement in early August 2017 after completion of the audit process.

Consolidated Group revenue for the year was around GBP 7.16m compared with GBP 7.04m in the previous year. The Group had the benefit of full year revenues from the two acquisitions made in December 2015 but this was largely offset by reduced income from its Adamson’s Laboratory Services Limited (ALS) subsidiary. As reported at the halfway stage, ALS has been loss-making and this continues to be the case, albeit the losses have gradually declined in response to management actions, including a reduction in staff numbers at a cost of approximately GBP 30,000 in statutory redundancy payments.

It is encouraging that the Group saw a material improvement in profitability in the second half of the year. At the interim stage, the EBITDA loss was GBP 93,000. Including the impact of the redundancy payments mentioned above, we anticipate an EBITDA loss for the year of approximately GBP 100,000. Last year, the underlying EBITDA profit (calculated as earnings before interest, tax, depreciation, amortisation, acquisition costs and exceptional items) was GBP 368,000. 

Early indications are that the comparatively strong end to the year has continued into the first month of the current financial year, with April 2017 anticipated to show positive EBITDA. It is too early to quantify the goodwill impairment which we expect will be required. This will be reviewed by the board once the auditors have completed their work and made their recommendations.

At the Interim stage, we stated that “if the Group does not generate a profit for  the  year,  it  may  recommend  a  lower  distribution  or  elect  to  forego  a  dividend  entirely  on  this occasion” and this remains the position. The board will consider the matter in due course.

Cash at bank at the end of the financial year was GBP 201,000 and the Group has a facility with its bankers of GBP 300,000.

This announcement contains inside information.

For further information please contact:

PHSC plc
Stephen King                               01622 717700
[e-mail]
www.phsc.plc.uk

Northland Capital Partners Limited (Nominated Adviser)     0203 861 6625
Edward Hutton/David Hignell

Beaufort Securities Limited (Broker)     020 7382 8300
Elliot Hance

About PHSC

PHSC plc, through its trading subsidiaries Personnel Health & Safety Consultants Ltd, RSA Environmental Health Ltd, Adamson's Laboratory Services 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. B to B Links Ltd and SG Systems (UK) Ltd offer innovative retail security solutions including tagging, labelling and CCTV.

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