TIDMPHSC 
 
8 August 2023 
 
PHSC PLC 
 
("PHSC", the "Company" or the "Group") 
 
Final Results for the year ended 31 March 2023 
 
Availability of Annual Report and Notice of Annual General Meeting 
 
PHSC (AIM: PHSC), a leading provider of health, safety, hygiene and 
environmental consultancy services and security solutions to the public and 
private sectors, is pleased to announce its audited results for its financial 
year ended 31 March 2023. 
 
FINANCIAL HIGHLIGHTS 
 
·       Underlying EBITDA of £0.366m compared to £0.274m in the prior year 
 
·       Profit after tax of £0.243m compared to a loss after tax of £0.631m in 
the prior year, the latter mainly due to writing off goodwill in respect of the 
Security Division 
 
·       Group revenue of £3.438m, down from £3.571m in the prior year 
 
·       Group net assets increased to £3.638m from £3.513m 
 
·       Statutory earnings per share of 2.05p compared to a loss per share of 
4.76p in the prior year 
 
·       Cash reserves of £0.750m at the year end up from £0.649m for the prior 
year 
 
·       Final dividend of 1.0p proposed, making a total of 1.5p for the year 
compared with 1.0p last year 
 
 
 
                                  31.3.23    31.3.22 
                                  £          £ 
Profit/(loss) before tax          304,598    (577,798) 
Less: interest received           (1,346)    (388) 
Add: depreciation                 63,034     58,812 
Add: impairment of B2BSG          -          676,178 
Solutions Limited goodwill 
Add: impairment of Inspection     -          117,240 
Services (UK) Limited goodwill 
Underlying EBITDA*                366,286    274,044 
 
* - Underlying EBITDA is calculated as earnings before interest, tax, 
depreciation and impairment charges.  This is used by the board as a measure of 
underlying trading and has been provided to assist shareholders in understanding 
the Group's trading activities. 
 
Annual General Meeting ("AGM") and Availability of full 2023 Annual Report 
 
This year's AGM will be held at 10.00 a.m. on Thursday, 28 September 2023 at The 
Old Church, 31 Rochester Road, Aylesford, Kent ME20 7PR. 
 
The full annual report and accounts for the financial year to 31 March 2023 and 
notice of AGM are expected to be posted to shareholders on or around 10 August 
2023 and will shortly be made available to download from the Company's website 
at:www.phsc.plc.uk. 
 
Dividend 
 
The Company confirms that, subject to shareholder approval at its forthcoming 
AGM, an increased final dividend of 1.0p per share will be payable on 13 October 
2023 to shareholders on the register on 29 September 2023. 
 
For further information please contact: 
 
PHSC plc 
 
Stephen KingTel: 01622 717 700 
 
Stephen.king@phsc.co.uk (https://www.investegate.co.uk/phsc-plc--phsc 
-/prn/trading-update/20170526111953P8859/null) 
 
www.phsc.plc.uk 
 
Strand Hanson Limited (Nominated Adviser)Tel: 020 7409 3494 
 
James Bellman / Matthew Chandler 
 
Novum Securities Limited (Broker)Tel: 020 7399 9427 
 
Colin Rowbury 
 
About PHSC 
 
PHSC, 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. In addition, B2BSG Solutions Ltd offers 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 Regulation 
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of 
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market 
Abuse (Amendment) (EU Exit) Regulations 2019. 
 
CHIEF EXECUTIVE OFFICER'S REPORT 
 
I am pleased to report that the Group has built on the post-pandemic progress 
made in the prior year and has generally returned to normal trading across all 
subsidiaries.  With the carrying value of our Security Division having been 
written down to zero in 2021-22, there is no impairment to report for 2022-23. 
Accordingly, the Group returned to profitability and the board is proposing an 
increased final dividend to shareholders. 
 
The board has determined that a higher distribution is justified in conjunction 
with a planned third share buyback programme, which will be confirmed, and 
further details announced as soon as practicable following publication of the 
Annual Report utilising the existing authority.  To maintain flexibility, the 
board is seeking renewed authority at the forthcoming 2023 AGM for further 
potential share buybacks however shareholders should not assume that such 
renewed authority, if granted, will necessarily be utilised. 
 
Individual subsidiary performance is considered in some detail later in this 
report. 
 
GENERAL BUSINESS OVERVIEW AND OUTLOOK 
 
Security Division 
 
Having written off the carrying value of this part of the Group's business in 
2021-22, management focussed on how best to commence a rebuilding of the 
division through better cost control and improved margins.  This is a medium 
-term objective and is subject to variables outside the Company's control such 
as exchange rates, costs of shipping and the general economic climate as it 
affects the retail sector. Prior to central charges and some write-down of slow 
-moving stock, the business broke even over the year under review. There were 
increases to both revenues and costs, however profit margins remained suppressed 
due to the aforementioned external factors.  It is anticipated that there will 
be some respite in that transportation costs have progressively reduced from the 
2021-22 highs and the business has been able to raise prices on some contracts. 
The client base remains overwhelmingly centred on the retail sector and includes 
supermarkets, department stores and garden centres. 
 
Systems Division 
 
Results from this part of the Group's business were extremely encouraging and 
the division built upon the good progress made in 2021-22. Revenue was up more 
than £100,000, the majority of which fed through to the bottom line as evident 
in the more detailed financial summary later in this report. 
 
Consultancy sales were strong throughout the year and benefitted from long-term, 
valuable contracts on safety support for regular clients. Sales of UK 
Responsible Person services in connection with the supply of medical devices 
were higher than anticipated due to both additional clients, and increased work 
from the existing client base following changes in the regulatory framework for 
registration. 
 
Training delivery returned to pre-pandemic levels and the year ended with strong 
sales figures for both in-house and public training. 
 
Safety Division 
 
Progress was made in respect of the profitability of servicing clients in the 
education and leisure sectors, although higher revenues were adversely impacted 
by the higher costs incurred in connection with delivering our services. 
Additional costs were experienced throughout the division, compounded by staff 
salaries being increased twice during the year to mitigate against persistently 
high inflation rates and rising domestic energy costs. 
 
Total revenue was markedly lower due to a large commission-only agreement in 
respect of COVID-19 testing during the pandemic which positively skewed the 2021 
-22 results. 
 
Cash reserves 
 
Cash at bank increased year-on-year from approximately £649,000 to £750,000 
reflecting the cash generative nature of our operations.  The total cost of 
servicing dividends, maintained at the same level, was lower, as a result of 
approximately 2.8 million fewer ordinary shares being in issue following the 
successful buyback programme implemented in the prior year.  As noted above, it 
is proposed that, subject to shareholder approval at the forthcoming AGM, the 
final dividend be increased to return a greater proportion of cash to 
shareholders, given that the Group remains cash-generative with excess reserves 
for its currently foreseeable requirements. 
 
The Group's cash position following payment of the proposed enhanced final 
dividend and planned further share buyback programme, should be more than 
sufficient for all currently anticipated expenditure. To underpin this position 
and provide flexibility/headroom the Group also has a currently unutilised 
facility with HSBC Bank plc of an initial £50,000 in the unlikely event it is 
required. 
 
The Group's only borrowings relate to certain leases in respect of land and 
buildings and motor vehicles, further details of which are provided in note 13 
to the full annual report and accounts. 
 
Net asset value 
 
The Group's net asset value of approximately £3.638m equates to a little over 
30p per ordinary share and has remained consistently higher than the Company's 
market share price on AIM. The equivalent net asset value at the end of the 
previous year was circa 3 per cent. lower, at approximately £3.513m. 
 
Outlook 
 
Management expectations across the Group, despite the slow start to the year 
based on Q1 figures, are that 2023-24 has the potential to be another successful 
year.  Where it is practical to do so, we will seek to apply modest price 
increases to our fee rates in a bid to recover the majority of the extra costs 
we are facing.  In the current environment, some areas of expenditure are almost 
certain to continue to rise but others including energy bills and shipping of 
security products appear more stable. Recruitment and retention of personnel 
remains challenging and represents our most significant cost category. 
 
Each subsidiary currently appears to be on a stable footing and are well placed 
to continue to trade profitably and generate cash flow over the remainder of the 
current financial year. 
 
Trading update 
 
Unaudited Group management accounts for Q1 of the current financial year show 
total revenue of approximately £0.754m and EBITDA of approximately £49,100 (Q1 
2022-23:  £0.862m and £0.1m respectively). 
 
Dividends 
 
A total dividend of 1.0p per ordinary share (£124,020) was paid in respect of 
the financial year ended 31 March 2022.  An interim dividend of 0.5p in respect 
of the financial year ended 31 March 2023 was paid in February 2023 (£59,190) 
and, subject to shareholder approval, a final dividend of 1.0p to be paid from 
earnings from the financial year ended 31 March 2023 is proposed to be paid in 
October 2023, representing an increase of 0.5p or 50 per cent. on last year's 
total. 
 
PERFORMANCE BY TRADING SUBSIDIARY 
 
The Group currently utilises the following key performance indicators (KPIs). 
 
Total revenues 
 
Total revenues are reviewed each month across the Group to provide the board 
with a ready measure of how well the Group and its underlying businesses are 
performing relative to historical data.  It enables any trend to be detected, 
interpreted and acted upon as appropriate. Consolidated Group revenues for the 
year decreased by approximately 3.7% but when a £400k adjustment is made to the 
2021-22 turnover for a one-off contract with a single customer for COVID-19 
testing services, a 7.5% increase in turnover is evident, which the board views 
as being a good outturn in the current challenging market conditions. 
 
Earnings before interest, taxation, depreciation and amortisation (underlying 
EBITDA) 
 
The Group's underlying EBITDA increased from £274,044 in 2021-22 to £366,286 in 
2022-23. 
 
Staff turnover 
 
Staff turnover is closely monitored as the key asset of each subsidiary is its 
workforce. Recruiting replacement staff is an expensive task and it is not 
always possible to compensate for the specialised knowledge that may be lost 
when an employee departs. During the year, 3 people left the employment of the 
Group and no new staff were recruited, resulting in 34 employees at the year 
end, excluding 7 PHSC plc and subsidiary directors. 
 
Pre-tax profit/(loss) per subsidiary before Group management charges 
 
Profit before tax and management charges is reviewed by each subsidiary and by 
the board every month. Each subsidiary director provides a commentary to enable 
the board to establish whether intervention of any kind is appropriate. 
 
A summary of the results and activities of our trading subsidiaries is set out 
below. Performance is based on those factors within a subsidiary director's 
control, such that results are shown exclusive of management charges and 
taxation and any impairment provision judged to be necessary.  The parent 
company covers its own management costs by levying a charge on each subsidiary 
and derives other income through the receipt of dividends from its subsidiaries. 
 
B2BSG Solutions Limited (B2BSG) 
 
·       2023: revenues of £829,900 yielding a loss of £9,100 after a slow-moving 
stock write down of £9,100 
 
·       2022: revenues of £749,200 yielding a loss of £79,200 after a slow 
-moving stock write down of £55,000 
 
B2BSG ended the year with sales that were £80k higher than in 2021-22.  An end 
of year adjustment for currency revaluation resulted in a total negative loss 
variance of £7.3k due to adverse exchange rates over the course of the year. 
Effectively, the business traded at around break-even before management charges 
and a £9.1k year-end stock provision.  This compares very favourably with the 
loss sustained in the previous year. 
 
A two-year contract with a national supermarket group, awarded before the Brexit 
protocol was known, came to an end in March 2023. Costs associated with this 
particular contract had led to an almost total elimination of gross margin. 
Costs were higher than anticipated due to an Irish VAT registration being 
required, product inflation which we were unable to recover as prices were 
fixed, and an escalation in transport costs. Upon its expiry, this contract was 
formally renegotiated and renewed for a further two years on much more 
favourable terms, which should facilitate the company's recovery strategy. 
 
Another national supermarket chain is embarking on a refurbishment exercise for 
its security infrastructure in 2023-24, and B2BSG are in the early stages of 
installing equipment to assist them in carrying out their programme. 
 
The mix of clients now has more of a bias towards food retail. Some economists 
are suggesting that there may be signs of recovery in bricks and mortar retail 
activity more generally which, if borne out, would bode well for B2BSG. 
 
Inspection Services (UK) Limited (ISL) 
 
·       2023: revenues of £198,100 yielding a profit of £7,000 
 
·       2022: revenues of £186,600 yielding a profit of £8,700 
 
ISL achieved increased revenues of £198,100, being £11,500 ahead of the prior 
year's total sales of £186,600.  The resulting profit achieved fell by £1,700 
year-on-year to £7,000.  The improvement in revenues was more than offset by 
higher costs incurred in delivering the services, most notably in terms of 
travel and accommodation charges, which increased by almost £3,000. 
Subcontractor costs rose by £2,500 and were approximately 40% higher than in 
2021-22. Staff salaries were increased twice during the year to mitigate against 
high inflation figures and rising domestic energy costs. Such pay adjustments 
were necessary but resulted in around £4,000 of unplanned additional 
expenditure. Most of ISL's work is sourced through insurance brokers in exchange 
for commission payments. Broker commissions were similar to the prior year. 
There were no bad debts arising during the year and the company remains cashflow 
-positive. Overall, its client portfolio remains stable, with most work 
comprising repeat business. 
 
Personnel Health & Safety Consultants Limited (PHSCL) 
 
·       2023: revenues of £806,700 yielding a profit of £268,300 
 
·       2022: revenues of £1,283,100 yielding a profit of £351,000 
 
Trading returned to more normal levels after maximising opportunities for safety 
and risk management brought about by the COVID-19 pandemic. PHSCL's revenue and 
profit were lower than the previous year but in line with management's 
expectations. During the year, online systems continued to be reviewed to help 
streamline the business and optimise the company's ability to pitch for larger 
contracts as well as to widen its service offering to existing clients.  There 
has been an increasing level of interest expressed from both prospective and 
current customers as a result of applying a personal touch whereby customers are 
able to speak to a person rather than automated support.  This approach will 
continue to be promoted whilst developing ways to enhance services with online 
systems that also adopt a more personal perspective.  The business's main 
challenge at the current time is its ability to attract the right level of 
consultant expertise due to a general skills shortage which goes wider than 
PHSCL. Subject to securing the services of appropriately qualified fee-earning 
staff there is confidence in respect of opportunities to grow revenue. 
 
QCS International Limited (QCS) 
 
·       2023: revenues of £834,600 yielding a profit of £272,100 
 
·       2022: revenues of £724,100 yielding a profit of £189,600 
 
Trading has returned to pre-COVID-19 levels, with consultancy sales exceeding 
£400,000 for the first time.   There continues to be a high level of repeat 
business combined with income from new clients with whom long-term relationships 
will be sought.  Income from the UK Responsible Person service for medical 
devices exceeded management's expectations by a considerable margin due to a 
mixture of new clients and increased work from the existing client base 
following changes in the regulatory framework for registration. Training is now 
back at pre-pandemic levels; the year ended with very positive sales figures for 
both public and in-house courses, with combined training income approaching 
£350,000 for the year.  To meet and manage demand, the company calls upon the 
services of consultants employed by other Group companies as appropriate and has 
ambitions to grow revenues in the year ahead. Profit for the year was £272,100 
(compared to £189,600 in 2021-22) which reflects a combination of improved sales 
and tight cost control. 
 
Quality Leisure Management Limited (QLM) 
 
·       2023: revenues of £402,400 yielding a profit of £137,500 
 
·       2022: revenues of £323,600 yielding a profit of £100,900 
 
Business started strongly in 2022 for both auditing and training as there was 
pent-up demand post the pandemic abating. Training requirements dropped slightly 
towards the latter part of the financial year though training via video 
conferencing remained popular.  In addition to reducing staff travel time and 
costs recharged to clients, video conferencing affords greater accessibility to 
those clients only requiring a small number of participants or for those who 
were unable to attend the in-house delivered course. 
 
Demand for audits remained strong, involving support for clients in verifying 
processes and procedures as their facilities returned to fully operational 
status. Both audit and training income streams were significantly up on 
management's expectations. 
 
Consultancy in relation to health and safety and quality systems was a 
significant source of income in 2022-23 with QLM supporting clients in the 
development of their policies, processes, procedures and systems. 
 
Expert witness work was lower than in previous years as leisure facilities were 
closed for significant periods during the pandemic and UK courts are struggling 
to catch up with delays and postponements. 
 
Cost of sales increased in proportion to income. Consultant and subcontractor 
salaries and fees were reflective of the higher costs of delivery as well as 
greater activity. 
 
RSA Environmental Health Limited (RSA) 
 
·       2023: revenues of £365,900 yielding a profit of £69,800 
 
·       2022: revenues of £304,000 yielding a profit of £53,600 
 
Annual revenue showed a 20% increase compared to 2021-22 and the company is now 
trading at similar levels to those experienced prior to the pandemic.  The 
increase in sales led to profits not seen since 2018-19.  The majority of income 
streams were above expectations, with the exception of general health and safety 
consultancy services but this was only because consultants' fee earning time was 
being utilised for the provision of other services. Food safety consultancy has 
seen some welcome growth over the last year. 
 
Rather than employ additional members of staff, employees from elsewhere within 
the Group and trusted associates were used to provide extra fee-earning 
capability. Such strategy helped to keep costs under control and enabled the 
company to deal efficiently with the peaks and troughs in its workload. 
 
In previous years, the company's focus has been to diversify its service 
offering and strengthen its presence in the markets in which it operates.  These 
efforts have continued and resulted in a more even spread of revenues across the 
services provided.  This will continue to be a focus to make the company more 
resilient. 
 
SafetyMARK services saw revenues continue to recover. Demand for these services 
remains strong especially within the independent school's market.  There is a 
high retention rate with schools demonstrating that they see value in the 
services RSA offers. 
 
Training services remain strong, with a focus on school-based Institution of 
Occupational Safety and Health (IOSH) accredited training courses.  These have 
proved very popular with schools and demand continues to be strong with good 
profits achieved. 
 
PHSC plc 
 
·       2023: net loss of £442,300 before management charges, interest and 
dividends received 
 
·       2022: net loss of £409,200 before management charges, goodwill 
impairment, interest and dividends received 
 
The Company incurs costs on behalf of the Group and does not generate any 
income; the costs relate to running an AIM quoted Group. 
 
PRINCIPAL RISKS AND UNCERTAINTIES 
 
Pandemic 
 
The financial impact of the coronavirus pandemic continued to ease with business 
activity returning towards pre-pandemic levels.  Inevitably, there are legacy 
impacts in particular on the high street where consumers' shopping habits have 
shifted towards greater on-line ordering, and this represents a concern to the 
Security Division where retail outlets form a significant part of its customer 
base. Conversely, the Systems and Safety Divisions are continuing to experience 
a rebound in activity as clients catch up on projects that were previously 
deferred or cancelled.  The Group's ability to deliver services remotely as an 
alternative to a face-to-face offering is more appealing to some customers and 
this alternative continues to be offered where appropriate. 
 
Regulatory/Marketplace 
 
Approximately 50% of the Group's work involves assisting organisations with the 
implementation of measures to meet regulatory requirements relating to health 
and safety at work.  If the regulatory burden was to be substantially lightened, 
for example if the government embarked upon a programme of radical deregulation, 
there could be less demand for the Group's services. Changes to the operation of 
the employer's liability insurance system, as proposed in some quarters, could 
reduce the incentive for organisations to buy in claims-preventive services such 
as health and safety advice.  In mitigation of these risks, the board has 
diversified the Group's range of offerings, for example, through investing in 
its Systems Division and continues to explore non-regulatory areas of 
environmental work to add to the current portfolio of services. 
 
The Group's Security Division works almost exclusively in the retail sector, and 
this has continued to suffer as a result of weak consumer demand on the high 
street and the move towards on-line purchasing, which accelerated during the 
COVID-19 pandemic.  Any further material deterioration in the retail sector and 
specifically in B2BSG's client base would have a significant negative effect on 
the company's and hence the Group's prospects.  To mitigate any future negative 
effects, the Group wrote off the carrying value of its Security Division in 2021 
-22 in full and periodically reviews the need to make financial provision 
against the value of stock held in its warehouse. 
 
Technological 
 
The Group's website is a primary source of new business.  If the website became 
inaccessible for protracted periods, or was subject to "hacking", this may 
prejudice the opportunity to obtain new business.  Additionally, the increase in 
the use of the internet for satisfying business requirements may lead to a 
reduction in demand for face-to-face consultancy services and the number of 
training courses commissioned may be affected by moves towards screen-based 
interactive learning. 
 
The subject of IT security is regularly reviewed by the board to ensure that 
appropriate strategies are in place.  The Aylesford based businesses (PHSC plc, 
PHSCL and ISL) have been re-certified to Cyber Essentials standard and all staff 
across the Group have participated in on-line training to reduce the risk of 
falling victim to phishing and other such scams.  All head office data is backed 
up to the Cloud and removeable hard drives attached to the physical server are 
rotated on a daily basis. 
 
Personnel 
 
Generally, there is an excess of demand over supply for health and safety 
professionals.  Those with sufficient qualifications and experience to be 
suitable for consultancy roles are in the minority.  This constraint has the 
combined effect of making it difficult for the Group to source suitable 
personnel and having to offer higher remuneration packages to attract them.  The 
Group is dependent upon its current executive management team.  Whilst it has 
entered into contractual arrangements with the aim of securing the services of 
these personnel, the retention of their services cannot be guaranteed. 
Accordingly, the loss of any key member of management of the Group may have an 
adverse effect on the future of the Group's business.  The Group and each 
subsidiary have contingency plans in place in the event of incapacity of key 
personnel. 
 
Geographical 
 
The Group offers a nationwide service, but a number of organisations see benefit 
in using consultancies that are local to them and internet search engines favour 
local providers.  With offices in Kent, Berkshire, Northamptonshire and 
Scotland, the Group has a good geographical spread. 
 
Licences 
 
The Group is reliant on licences and accreditations to be able to carry on its 
business.  The temporary loss of, or failure to maintain, any single licence or 
accreditation would be unlikely to be materially detrimental to the Group, as 
the directors believe that this could be remedied. However, if the Group fails 
to remedy any loss of, or does not maintain, any licence or accreditation, this 
will have a material adverse effect on the business of the Group.  The Group has 
internal processes in place to ensure that its licences and accreditations are 
maintained. 
 
Climate risk 
 
The board is mindful of climate risk and will continue to evaluate what 
potential implications the changing climate may have on both the business 
activities of the Group and its clients. 
 
SECTION 172 STATEMENT 
 
The Companies (Miscellaneous Reporting) Regulations require large companies to 
publish a statement describing how the directors have had regard to the matters 
set out in section 172 (1) (a) to (f) of the Companies Act 2006.  These sections 
require directors to act in a way most likely to promote the success of the 
Group for the benefit of its stakeholders and with regard to the following 
matters. 
 
The likely consequences of any decision in the long term 
 
The board receives an annual business plan from the managing director of each 
subsidiary company, which forms the basis of the Group's strategic plan.  The 
board requires that the plans include financial forecasts, KPIs, marketing 
strategy and an analysis of strengths, weaknesses, opportunities, and threats. 
Subsidiary directors, via the Group's operational board of which they are 
members, consider the implications of their own plans in the context of what 
others within the Group are intending to do and the opportunities for synergies 
are explored.  Any proposed actions that may adversely affect another subsidiary 
are flagged at operational board level and are resolved. Subsidiary directors 
are challenged on the content of their plans and the assumptions they have made, 
to ensure that the plans are realistic and achievable. Once agreed by the board, 
this plan, at Group and subsidiary level, is used as the benchmark against which 
to assess performance. 
 
The interests of the Group's employees 
 
As the Group is mainly involved in the supply of services, the board considers 
its staff to be the greatest asset and the interests of employees are taken into 
consideration in all decisions made. Each subsidiary company within the Group 
has in place the necessary structures to ensure effective communication with its 
employees.  The subsidiary directors meet once a quarter and relevant 
information is shared with employees via team meetings held at subsidiary 
level.  The views of employees are heard in a similar fashion, initially at team 
meetings, and escalated to the operational board and the main board if 
appropriate. Each subsidiary has its own bonus scheme, based on results for the 
financial year and/or tailor-made targets.  There is an annual budget for staff 
training in recognition that the performance of the Group can be improved by the 
development of its employees. 
 
The Group is committed to equality of employment and its policies reflect a 
disregard of factors such as disability in the selection and development of 
employees.  A review has been conducted to identify any gender-related pay 
anomalies across the Group and found there to be no such anomalies. 
 
The need to foster the Group's business relationships with suppliers, customers, 
and others 
 
The Group seeks to treat suppliers fairly and adhere to contractual payment 
terms.  The Group works with its suppliers to help drive change through 
innovation, promoting new ideas and ways of working.  The Group has zero 
-tolerance to modern slavery and is committed to acting ethically and with 
integrity in all business dealings and relationships.  The Group's policy for 
Modern Slavery and Human Trafficking contains systems and controls to ensure 
that these activities are not taking place anywhere in the subsidiaries or 
throughout the Group's supply chains and can be viewed on our website 
(www.phsc.plc.uk). 
 
The Group also has zero-tolerance with regards to bribery, made explicit through 
its Anti-Bribery and Corruption Policy.  This covers the acceptance of gifts and 
hospitality and any form of unethical inducement or payment including 
facilitation payments and "kickbacks".  The policy sets out the responsibilities 
of directors, employees and contractors and details the procedures in place to 
prevent bribery and corruption.  This policy is also available on our website. 
 
Each subsidiary is focussed on its customers. Communication takes many forms and 
is structured according to how each subsidiary interacts with its client base. 
Channels of communication include quarterly newsletters in hard copy and/or sent 
electronically, customer roadshows, interaction via various social media 
platforms (Twitter, LinkedIn and Facebook) and regular client meetings.  An 
ongoing dialogue is held electronically, with most clients subscribing to email 
updates that are sent out periodically. 
 
Stephen King is the principal contact between the Company and its investors, 
with whom he maintains a regular dialogue.  The Company is committed to 
listening to and communicating openly with its shareholders to ensure that its 
business model and performance are understood. Regular announcements are made to 
the market and the AGM provides a forum for information dissemination, 
discussion and feedback. 
 
The impact of the Group's operations on the community and the environment 
 
The board's intention is to behave responsibly and ensure that management 
operates the business in a responsible manner, complying with high standards of 
business conduct and good governance.  The Group has a long tradition of 
supporting local causes through sponsorship and community involvement, details 
of which can be found on our website.  The directors are aware of the impact of 
the Group's business on the environment but believe this to be minimal due to 
the nature of its operations. 
 
GOING CONCERN 
 
Company law requires the directors to consider the appropriateness of the going 
concern basis when preparing the financial statements. Cash reserves ended the 
year at a higher level than in 2021-22.  The board is satisfied that such 
reserves, along with the Group's cash-generative trading position and (unused) 
credit facility will ensure that there are sufficient resources to continue in 
operational existence for the foreseeable future.  The cost of the proposed 
enhanced final dividend is factored into the board's calculations in this 
regard.  The directors therefore continue to adopt the going concern basis of 
accounting in preparing the annual financial statements. 
 
On behalf of the board, I must once again thank all our shareholders, employees 
and other stakeholders for continuing to place their trust in us and for 
enabling 2022-23 to be a successful year. 
 
Stephen King 
 
Group Chief Executive 
 
7 August 2023 
 
GROUP STATEMENT OF FINANCIAL POSITION 
 
as at 31March2023 
 
                                   31.3.23    31.3.22 
 
                                   £          £ 
Non-Current Assets                 468,490    490,138 
 
Property, plant and equipment 
Goodwill                           2,235,045  2,235,045 
Deferred tax asset                 11,554     15,591 
                                   2,715,089  2,740,774 
Current Assets                     200,169    185,685 
 
Stock 
Trade and other receivables        674,372    726,378 
Cash and cash equivalents          749,627    649,363 
                                   1,624,168  1,561,426 
Total Assets                       4,339,257  4,302,200 
Current Liabilities                531,422    617,077 
 
Trade and other payables 
Right of use lease liabilities     25,137     30,632 
Current corporation tax payable    56,919     55,112 
                                   613,478    702,821 
Non-Current Liabilities            25,414     24,184 
 
Right of use lease liabilities 
Deferred tax liabilities           62,223     61,842 
                                   87,637     86,026 
Total Liabilities                  701,115    788,847 
Net Assets                         3,638,142  3,513,353 
Capital and reserves               1,184,704  1,467,726 
attributable to equity holders 
of the Group 
 
Called up share capital 
Share premium account              1,916,017  1,916,017 
Capital redemption reserve         426,650    143,628 
Merger relief reserve              133,836    133,836 
Treasury shares                    -          (644,738) 
Retained earnings                  (23,065)   496,884 
                                   3,638,142  3,513,353 
 
GROUP STATEMENT OF COMPREHENSIVE INCOME 
 
for the year ended 31 March 2023 
 
                                        31.3.23      31.3.22 
 
                                        £            £ 
Continuing operations:                  3,437,624    3,570,626 
 
Revenue 
Cost of sales                           (1,612,543)  (1,938,870) 
Gross profit                            1,825,081    1,631,756 
Administrative expenses                 (1,524,829)  (1,446,051) 
Goodwill impairment                     -            (793,418) 
Government grants                       -            29,527 
Other income                            3,000        - 
Profit/(loss) from operations           303,252      (578,186) 
Finance income                          1,346        388 
Profit/(loss) before taxation           304,598      (577,798) 
Corporation tax expense                 (61,339)     (53,205) 
Profit/(loss) for the year after tax    243,259      (631,003) 
attributable to owners of the parent 
                                        -            - 
Other comprehensive income 
Total comprehensive income/(loss)       243,259      (631,003) 
attributable to owners of the parent 
Basic earnings/(loss) per share from       2.05p             (4.76)p 
continuing operations (p) 
 
GROUP STATEMENT OF CHANGES IN EQUITY 
 
for the year ended 31 March 2023 
 
              Share        Share        Merger   Capital       Treasury 
Retained   Total 
              Capital      Premium      Relief   Redemption    Shares 
Earnings 
                                        Reserve 
£ 
              £            £                     Reserve       £            £ 
                                        £ 
                                                 £ 
Balance at 1  1,467,726    1,916,017    133,836  143,628       (644,738) 
496,884    3,513,353 
April 2022 
Profit for 
year 
attributable 
to 
equity        -            -            -        -             - 
243,259    243,259 
holders 
Dividends     -            -            -        -             - 
(118,470)  (118,470) 
Cancellation  (283,022)                          283,022       644,738 
(644,738)  - 
of 
own shares 
Balance at    1,184,704    1,916,017    133,836  426,650       - 
(23,065)   3,638,142 
31 
March 2023 
Balance at 1  1,467,726    1,916,017    133,836  143,628       - 
1,258,092  4,919,299 
April 2021 
Loss for 
year 
attributable 
to 
equity        -            -            -        -             - 
(631,003)  (631,003) 
holders 
Dividends     -            -            -        -             - 
(130,205)  (130,205) 
Purchase of   -            -            -        -             (644,738)    - 
(644,738) 
own 
shares 
Balance at    1,467,726    1,916,017    133,836  143,628       (644,738) 
496,884    3,513,353 
31 
March 2022 
 
GROUP STATEMENT OF CASH FLOWS 
for the year ended 31 March 2023 
 
                                           Note  31.3.23    31.3.22 
 
                                                 £          £ 
Cash flows from operating activities:      I     318,153    313,530 
 
Cash generated from operations 
Tax paid                                         (55,114)   (89,213) 
Net cash generated from operating                263,039    224,317 
activities 
Cash flows used in investing activities          (41,386)   (22,117) 
 
Purchase of property, plant and equipment 
Proceeds from disposal of fixed assets           -          140 
Interest received                                1,346      388 
Net cash used in investing activities            (40,040)   (21,589) 
Cash flows used in financing activities          (4,265)    (15,905) 
 
Payment of lease liabilities 
Purchase of own shares                           -          (644,738) 
Dividends paid to shareholders                   (118,470)  (130,205) 
Net cash used in financing activities            (122,735)  (790,848) 
Net increase/(decrease) in cash and cash         100,264    (588,120) 
equivalents 
Cash and cash equivalents at beginning of        649,363    1,237,483 
year 
Cash and cash equivalents at end of year         749,627    649,363 
All changes in liabilities arising from 
financing relate entirely to cash 
movements. 
 
NOTES TO THE GROUP STATEMENT OF CASH FLOWS 
 
for the year ended 31 March 2023 
 
                                                    31.3.23   31.3.22 
 
                                                    £         £ 
I. CASH GENERATED FROM OPERATIONS 
Profit/(loss) from operations                       303,252   (577,798) 
Depreciation charge                                 63,034    58,812 
Goodwill impairment                                 -         793,418 
Loss on sale of fixed assets                        -         2,441 
(Increase)/decrease in stock                        (14,484)  74,075 
Decrease/(increase) in trade and other receivables  52,006    (136,250) 
(Decrease)/increase in trade and other payables     (85,655)  98,832 
Cash generated from operations                      318,153   313,530 
 
Notes to the consolidated financial information 
 
The consolidated financial information set out above does not constitute the 
Group's financial statements for the years ended 31 March 2023 or 31 March 2022 
but is derived from those financial statements. Statutory financial statements 
for 2022 have been delivered to the Registrar of Companies and those for 2023 
have been approved by the board and will be delivered after dispatch to 
shareholders. The auditors have reported on the 2022 and 2023 financial 
statements which carried unqualified audit reports, did not include any 
reference to any matters to which the auditor drew attention by way of emphasis 
and did not contain a statement under section 498(2) or 498(3) of the Companies 
Act 2006. 
 
While the financial information included in this announcement has been compiled 
in accordance with International Financial Reporting Standards (IFRS), this 
announcement does not in itself contain sufficient information to comply with 
IFRS. The accounting policies used in the preparation of this announcement are 
consistent with those in the full financial statements. 
 
DIVIDENDS 
 
A total dividend of 1.0p per ordinary share was paid in respect of the year 
ended 31 March 2022; £64,830 was paid in January 2022 and the balance of £59,190 
in October 2022.  An interim dividend of 0.5p in respect of the year ended 31 
March 2023 was paid in January 2023 (£59,190) and, subject to shareholder 
approval at the AGM, a final dividend of 1p per share will be payable on 13 
October 2023 to shareholders on the register on 29 September 2023, thereby 
making a total of 1.5p for the year. 
 
 
This information was brought to you by Cision http://news.cision.com 
 
 
END 
 
 

(END) Dow Jones Newswires

August 08, 2023 02:00 ET (06:00 GMT)

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