7 June 2019
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 2019.
Consolidated Group revenue for the period was approximately
£5.21 million (31 March 2018: £7.01
million), and after premises costs and the exceptional gain
detailed below, the Group achieved positive EBITDA of approximately
£318,950 for the period (31 March
2018: approximately £92,500 after stock write-off and
redundancy costs in that year).
The reduction in revenue is largely attributed to a significant
decline in the sale of security solutions to retail clients as
highlighted in our interim results. This was impacted in
particular by the temporary cessation of new works from the Group’s
largest client in terms of revenues, as they went through a
protracted restructuring process. On the positive side, the
final restructure recently agreed by means of a CVA did not involve
the write-down of any monies owed to ourselves, and business from
that client has since seen a small recovery.
During the financial year there has also been considerable
change to the premises occupied across the Group, with leases
coming to an end in Wiltshire and Gloucestershire, and one freehold
disposed of in Essex. The costs of relocation and
dilapidations was more than offset by the one-off accounting gain
of £166,000 associated with the sale of the premises previously
occupied by our discontinued asbestos business. Our Scottish
subsidiary renewed a lease and took on an adjacent unit, both of
which involved substantial investment.
Cash at bank as at 7 June 2019 was
approximately £620,000 and the Company continues to maintain a
facility with its bankers. In view of the improved cash
position following the property sale, the facility has been reduced
at the Company’s request from £300,000 to £150,000.
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
2019 by mid-August 2019. As part of the audit process,
the Board will consider whether any impairment provisions are
necessary within the Group, particularly given the depressed level
of sales in the security division to the retail sector. The
Board will also consider the possible write-down of certain
slow-moving stock now that the security business has moved to a
single warehouse facility.
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.
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 Limited
offers innovative security solutions including electronic tagging,
labelling and CCTV.