8 September
2016
PHSC PLC
Pre-AGM 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 ahead of its AGM due to be held today. At that
meeting the Group Chief Executive, Stephen
King, will be commenting on the Group’s performance for the
first four months of the year to the end of July 2016.
For this period, the Group’s unaudited management accounts are
showing a consolidated EBITDA loss of around £94k on sales of £2.3m
but the Board anticipates that the position will improve before the
conclusion of H1 and that this improvement will be sustained in the
second half of the year, as explained below. Cash at bank (as at
6 September 2016) stood at £565k
which includes net proceeds arising from the recent share placing
which was announced on 19 August
2016.
Further commentary on each subsidiary’s results for this period
is given below. Earnings are shown prior to deduction of central
management charges and taxation.
B to B Links Ltd recorded a loss of around £4k and is
currently forecast to deliver sales of approximately £1.2m in H1.
Despite large monthly fluctuations in client sign-off and
installation activity, sales from key national accounts have met
expectations and continue to deliver much of the company’s
revenue. The closure of the Basingstoke office in July
marked the final stage in the integration of the Camerascan CCTV
acquisition which has gone smoothly in operational
terms. There has been an erosion of gross margins due
to higher trade costs for imported hardware, security tags and
labels as a result of the weaker pound post the
referendum. The outlook for the second half of the year
is strong for key national account activity and management is
taking a number of steps to turn around a sales shortfall in
independent retail, one of the company’s traditional strengths.
SG Systems UK Ltd has lost £37k as it continued to suffer
from an unexpected and lengthy hiatus in new store opening by one
of its larger customers, delays to a source tagging project, and
higher trade costs for imported goods - again due to the weakness
in sterling. The issue delaying new store openings has
very recently been resolved. Work to introduce new products
to new customers has begun to bear fruit, and will enable the
company to return to monthly profits in August and September. This
has also provided a healthy pipeline of potential projects which it
is hoped will be converted during the second half of the
year.
RSA Environmental Health Ltd generated profit of £24k but
August is never a good month financially as it coincides with
closure of schools from which the majority of RSA’s revenues are
drawn. Activity is expected to pick up as schools return in
September.
Quality Leisure Management Ltd is showing a profit of
just over £8k, with Q1 income down mainly due to Local Authorities
coming under greater financial pressure. Local Authorities are the
main source of funding to Leisure Trust clients.
Personnel Health & Safety Consultants Limited expects
to deliver around £100k of profit for the first half, having
reached £70k by the end of July. The subsidiary’s largest client
has agreed to extend a contract, originally due to expire at the
end of August, for three months to allow time for negotiations on a
new arrangement.
Inspection Services (UK) Ltd achieved a profit of £15k
and expects around £20k for the first half, ahead of where it was
last year. In addition, it recently secured its largest single
contract, valued at £25k, through an insurance broker. The contract
is an enhanced version of a £17k order first awarded last year.
QCS International Ltd achieved a profit of £40k and
anticipates around £60k in total for the first half. Costs in Q2
were particularly high as the company incurred legal expenses
associated with preventing a competitor from using a similar
trading name and style. Management are confident of a good
second half performance, with bookings already received for
training courses and it is also hoped that a new medical device
consultancy project will begin in Q3.
Adamson’s Laboratory Services Ltd recorded a loss of
£54k. It continues to face considerable difficulties in what has
become a highly competitive market for asbestos management
services. A number of steps have been taken to reduce costs,
including staff redundancies, but it will take time for the
benefits to filter through. The company continues to seek new
business and has submitted a number of large tenders and quotations
for which decisions are awaited.
We look forward to updating the market at the time of our
interim results which are expected to be announced in early
December.
This announcement contains inside
information for the purposes of Article 7 of EU Regulation
596/2014.
For further information please contact:
PHSC plc
Stephen King
Stephen.king@phsc.co.uk
www.phsc.plc.uk
|
01622 717700 |
Northland Capital Partners
Limited (Nominated Adviser)
Edward Hutton/David Hignell |
0203 861 6625 |
Beaufort Securities Limited
(Broker)
Elliot Hance |
020 7382 8300 |
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.