16 June
2016
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 2016.
These indicative figures are per management accounts and after
certain adjustments, and are currently in the final stages of
audit. We expect to issue our Final Results announcement in early
August 2016.
Consolidated Group revenue for the period was around
GBP 7.04m, representing a fall of 9%
year-on year (2015 - GBP 7.7m).
The reduction arises principally from the ending of a large
asbestos management contract previously delivered by Adamson’s
Laboratory Services Limited (ALS) with a leading university, as
mentioned in our interim results statement. ALS was unable to find
sufficient replacement work to bridge the gap during the second
half.
It is encouraging that Consolidated Group revenue in the second
half increased around 12% over the first half but, as explained
below, it is likely that due principally to an impairment in the
carrying value of goodwill the results for the full year will not
meet our expectation at the time of the interim results statement
that we would see a stronger second half to the year.
Underlying EBITDA (excluding the goodwill impairment charge
below) stands at GBP 0.418m (2015:
GBP 0.818m) prior to various costs
associated with the two acquisitions made in December 2015.
Legal and other costs totalled approximately GBP 50,000. In addition, a further GBP 50,000 has been expended in meeting the
initial integration costs of one of those acquisitions, SG Systems
(UK) Limited, in the period to 31 March
2016. Should these costs not be recovered over the earn-out
period, they are deductible from the final instalment due under the
share purchase agreement.
Given the difficult trading conditions experienced by ALS, and
in accordance with standard tests applied by our Auditors, we
anticipate an impairment of GBP 0.6m
in the carrying value of goodwill in respect of ALS, representing a
reduction of approximately 9% in the consolidated net assets of the
Group before this adjustment.
The Company has adopted a progressive dividend policy. The
directors believe that the Company’s distributable reserves are
more than adequate to support the payment of a dividend in line
with previous years, should such a resolution be supported at the
AGM.
Management accounts indicate that both Group revenues and EBITDA
in the early part of 2016-17 are running ahead of the comparative
figures for last year.
Cash flow remains positive and the average bank balance in
June 2016 has been circa GBP 0.25m. The Company also has a facility with
its bankers, currently not called upon, of GBP 0.2m.
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.