REG-PHSC Plc: Final Results
14/08/2018 07:05
PHSC PLC
(the “Company” or the “Group”)
Final Results for the year ended 31 March 2018
Financial Highlights
• Loss after tax of £0.16m compared with a loss
of £0.69m last year
• Underlying EBITDA* profit of £0.14m, up from
loss of £0.10m last year
• Group revenue of £7.0m compared with £7.2m
last year
• Cash reserves of £0.24m at year end compared
to £0.21m last year
• Write-down of £0.20m due to impaired goodwill
compared to £0.63m last year
• Group net assets at £5.29m after goodwill
impairment compared to £5.5m last year
• Loss per share of 1.09p compared to a loss per
share of 4.92p last year
• Final dividend of 0.5p proposed, making a
total of 1.0p for the year compared to £nil last year
31.3.18 31.3.17
£ £
Loss before tax (145,861) (720,693)
Less: interest received (3) (471)
Add: interest paid 3,778 2,117
Add: depreciation 34,590 44,089
Add: impairment B to B Links Limited goodwill 200,000 -
Add: impairment Adamson’s Laboratory Services Limited goodwill - 625,191
Add: redundancy costs regarding closure of Adamson’s Laboratory Services Limited 47,000 -
Fair value movement on contingent consideration - (50,000)
Underlying EBITDA* 139,504 (99,767)
*Underlying EBITDA is calculated as earnings before interest, tax,
depreciation, impairment charges, non-recurring costs and fair value movement
on contingent consideration. 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.
Underlying EBITDA announced as part of the trading update on 8 June 2018 was
£184,000. The difference between this and the final underlying EBITDA of
£139,504, represents an audit adjustment for a non-cash provision in respect
of slow moving stock of £45,000. This arose following a review of stock
with the security businesses by management due to the merger of SG Systems
(UK) Limited and B to B Links Limited and the subsequent audit of stock in
those entities prior to the finalisation of the accounts. The adjustment is
a non-cash adjustment and is included in cost of sales and impacts profit
before tax.
Operational highlights
• Discontinuation of activities related to
asbestos management
• Acceleration of plans to merge the two
security technology companies
• Progress towards creation of divisional
structures for safety and security businesses
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 / Frederick Twist
Novum Securities Limited
(Broker)
020 7399 9427
Colin Rowbury
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.
Strategic Report
On behalf of the board, I present my review of the Group’s activities and
performance in the last financial year and share our views as to the ongoing
prospects and challenges that we face in the year ahead.
Key developments and outlook
PHSC plc, through its trading subsidiaries, has historically been a leading
provider of health, safety, hygiene and environmental consultancy services to
the public and private sectors. The Group took a decision to diversify into
security technology and associated systems with the acquisition of B to B
Links Limited (B to B) in 2012 and increased its interest in the sector by
acquiring SG Systems (UK) Limited (SG) in 2014. This led to the majority of
the Group’s revenues last year, for the first time, being derived from the
security businesses rather than health and safety services. The pattern has
continued with security services accounting for 60% of revenues, health and
safety 23% and quality systems 11%. The remaining 6% of revenues were
generated by Adamson’s Laboratory Services Limited (ALS) which, as
previously reported, was closed down during the year.
For our security technology companies, most clients are in the retail
sector. This means that our businesses are affected by the continued decline
of the high street, with footfall down as a consequence of on-line sales and,
in early 2018, severely adverse weather conditions. Taken together with
general uncertainty over Brexit and the weakness of sterling, this has led to
reduced opportunities and pressure on gross margins. The security businesses
in combination produced a (pre-management charge) profit of £27,000 before a
provision for slow moving stock of £45,000 for the Group in 2017/18 compared
with a loss of £61,000 in 2016/17, meaning a positive change of £88,000.
However, the continuing uncertainty in the sector has led the board, after
consultation with the auditor, to make a provision of £200,000 against the
carrying value of the Group’s security division.
With effect from 1 April 2018, the security businesses of B to B and SG were
combined into a single entity named B2BSG Solutions Limited. Over the coming
months it is planned to consolidate the two stock inventories into a single
warehouse, and to amalgamate and streamline the administration, engineering
and sales teams. As part of the planned integration, management conducted a
full review of stock and together with the auditor, identified slow moving
stock for which a non-cash provision of £45,000 has been made. There will
also be changes in the management and reporting structure, and we propose to
vacate the Amesbury premises in the 2018/19 financial year. These changes
will have some initial cost implications but overall are expected to have a
net positive effect on the Group’s finances.
Income for the health and safety businesses continues to originate from a wide
range of clients across various sectors, and we are particularly strong in
education, leisure, health and social care, and public transport. We also
serve a range of general commercial, public sector and industrial
organisations across the UK. In addition, we conduct statutory examinations
of plant and equipment such as pressure systems, lifting machinery and
accessories, and other work equipment either directly with clients or through
insurance broker intermediaries.
During the year we put into effect our decision to close down ALS, which
operated from premises in Essex and the Midlands. The Essex office is in the
process of being sold (subject to contract) and is expected to raise £300,000
of cash after expenses.
An extremely positive performance has been achieved by our QCS International
Limited (QCS) subsidiary which specialises in consultancy support and training
in quality systems management. QCS is looking to take on additional premises
alongside its existing Cumbernauld office, to help service the consistently
high level of demand for public training courses.
Our plans to form a safety division are progressing at a natural pace. The
lease on The Old Police Station in Northleach, occupied by Quality Leisure
Management Limited (QLM), expires in 2018 and the subsidiary will be
relocating to Raunds (Northamptonshire) to take up residence in Blotts Barn.
This is the Group-owned accommodation formerly shared between RSA
Environmental Health Limited (RSA) and ALS. Now that ALS has ceased
operations, the space has become available and this move will reduce QLM’s
premises-related costs. This will mean that the Group will operate from four
locations including the Aylesford Head Office, with the security division
based at Finchampstead (Berkshire), the safety division at Aylesford and
Raunds, and quality management systems delivered from Cumbernauld.
Acquisition payments
There are no outstanding liabilities in respect of former acquisitions and
currently there are no planned new acquisitions.
Net asset value
As at 31 March 2018, the Group’s consolidated net assets stood at £5.29m.
There were 14,677,257 ordinary shares in issue at that date which equates to a
net asset value per share of 36p.
The company’s ordinary shares continue to trade at a discount to the net
asset value. Much of the asset value relates to goodwill arising from
previous acquisitions. We review the carrying value each year to ensure that
the book value is stated within a range commensurate with good accounting
practice. As noted above, we are writing down the carrying value of our
retail-dependent security businesses by £200,000 and this represents a
reduction of approximately 4% in the consolidated net assets of the Group.
The board is satisfied that all other goodwill valuations can presently be
justified.
Outlook
It is necessary to reiterate the commentary made in last year’s report,
wherein we stated that the Group is affected by political uncertainty
surrounding the timetable and implications of leaving the European Union.
The weakness of sterling, triggered by the outcome of the Brexit referendum
two years ago, continues to impact on margins. This is because we rely upon
imported goods. In particular within our security business, goods are
predominately purchased in Euros or US Dollars, and it has not proved
commercially feasible to pass the full cost of this on to our customers.
Losses associated with ALS are now a matter of history following its closure
during the year. There are some ongoing implications as outlined below but
no material implications going forward. Prior to moving into security
technology, ALS was the largest part of the Group and the largest subsidiary
and made the greatest contribution towards the Group’s costs, approximately
£200,000 per annum. Whilst we have now extricated ourselves from that
business, management’s task is to find ways to replace the lost
contribution. The security division was intended to do this but, for reasons
explained, has encountered its own difficulties and will not make up the
shortfall. However, the safety division remains profitable and consolidation
of sites will reduce costs. All other things being equal, the highly
encouraging growth in revenue and profit from QCS gives us an expectation that
overall and on a consolidated basis, 2018/19 will see an improvement on
2017/18.
Trading update
Unaudited management accounts for the first quarter of 2018/19, after
adjusting for late invoice receipts from suppliers and a settlement to
compensate for unfinished asbestos work payable to a client of ALS show the
following: Group revenues were £1.56m and this generated EBITDA of
£121,815. This compares with total revenues of £1.82m for the first
quarter of 2017/18 and EBITDA of £121,351, which included results for ALS
which has now been discontinued.
Performance by trading subsidiary
The Group currently measures the following key performance indicators.
Total revenues
Total revenues are reviewed each month across the Group because this
information gives a ready measure of how well the Group and underlying
businesses are performing relative to historical data. It enables any trend to
be detected, understood and acted upon as appropriate. Consolidated Group
revenues for the year decreased by 2%;
Earnings before interest, taxation, depreciation, amortisation and
non-recurring costs (underlying EBITDA)
After allowing for exceptional costs, the Group saw an increase in EBITDA from
a loss of £100,000 to a profit of £139,500.
Staff turnover
Staff turnover is monitored because 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. Between the years ended 31 March 2017 and 2018 the
average number of staff employed across the Group fell from 88 to 72. The
main reason for the decrease was the closure of ALS which resulted in all
except one employee leaving the business.
Pre-tax profit/(loss) per subsidiary before Group management charges
Profits before tax and management charges are reviewed by each subsidiary and
the board every month to ensure that each subsidiary trades profitably.
Although the Group does not generally adopt a policy of cross-charging between
subsidiaries, informal account is taken of significant work done by one
subsidiary on behalf of another.
A review of the activities of each trading subsidiary is provided below. The
profit figures stated are before tax, central management charges and
impairment charges. The management charges are the individual subsidiary’s
contribution to Group overheads and are not directly attributable costs.
Adamson’s Laboratory Services Limited (ALS)
* 2018: revenues of £377,852 yielding a loss of £165,100
* 2017: revenues of £823,208 yielding a loss of £194,600
The adverse effects of competition within the sector resulted in the Group
making the decision to discontinue operations related to asbestos services on
31 December 2017. ALS continued to provide general health and safety
services until 31 March 2018 at which point the remaining client contracts
were satisfied by other Group companies.
The trading name, intellectual property, and the rights to offer asbestos
management service to former clients were sold to another asbestos consultancy
for £25,000.
Accordingly, ALS became dormant with effect from 31 March 2018. There will
however be certain ongoing costs in respect of outstanding leases on some
office machinery, where it has been determined that heavy penalties for early
settlement make it less expensive to continue with the leases. In addition,
the Group is obliged to carry run-off insurance in relation to previously
completed work by ALS with some contracts requiring this for up to six years.
It is also expected that there could be some one-off costs (which are not
expected to exceed £15,000) relating to compensation to some ALS clients for
their out-of-pocket costs where work was not completed by the time ALS ceased
operation.
B to B Links Limited (B to B)
* 2018: revenues of £2,777,300 yielding a profit of £78,300
* 2017: revenues of £2,594,900 yielding a profit of £52,500
During 2018 B to B generated revenues of £2,777,300, up 7% on the previous
year. The majority of revenues in 2017/18 continued to come from national
retail accounts, with revenues from the largest customer being £1.5m (2017:
£1.5m), and non-retail CCTV revenues grew by 25% compared with 2016/17.
After a very strong first half, profits for the year ended below forecast due
to weaker sales during the second half of the financial year. Nevertheless,
the operating profit before management charge in 2017/18 was 49% higher than
2016/17, despite the very challenging retail marketplace due to tight control
of overheads.
The profit is shown after a non-cash provision has been made of £15,000 (2017
- £nil) for slow moving stock.
SG Systems (UK) Limited (SG)
* 2018: revenues of £1,449,000 yielding a loss of £96,200
* 2017: revenues of £1,414,500 yielding a loss of £113,500
Revenues for SG were £1,449,000, up 2% on the previous year, but
significantly below forecast. The pressures facing the wider retail sector
have led to delays in capital expenditure decisions, thus impacting on SG’s
revenues. Although the company made an operating loss for the year, this was
considerably less than the previous year due to an improvement in gross
margins, which was partly the result of the recovery of sterling’s value
against the US dollar.
Over the last 18 months significant effort has been devoted to marketing
SG’s wider retail technology offer, which includes products that can support
retailers in driving sales conversion rates as well as reducing shoplifting.
This has resonated strongly amongst key retail customers and prospects and a
number of important in-store trials are now underway.
The profit is shown after a non-cash provision has been made of £30,000 (2017
- £nil) for slow moving stock.
Inspection Services (UK) Limited (ISL)
* 2018: revenues of £215,500 yielding a profit of £46,300
* 2017: revenues of £227,600 yielding a profit of £44,200
The main business of ISL continues to be the statutory examination and
inspection of lifting plant and equipment, and of pressure systems, under
contracts placed by insurance brokers on behalf of end users. In return for
passing this work to ISL, commissions are payable to brokers in line with
agreed terms. In addition to examinations necessary to meet specific
obligations under health and safety legislation, ISL also assists employers by
carrying out non-statutory inspections of various other items of workplace
equipment. It remains the case that a large majority of work derives through
insurance brokers, though ISL also engages directly with clients in a number
of cases.
Year-on-year revenues reduced by a little over 5%, reflecting a number of
contracts that were not renewed for various reasons. These include
situations where the equipment owner changes insurance broker and the new
broker has pre-existing arrangements with another provider of the services
that ISL offers. Whilst new contracts were won, these were outweighed by the
value of those contracts that lapsed. To some extent this is cyclical, as in
the previous year when new contracts were worth more than those lost.
ISL delivered higher profits on lower revenues thanks to a number of
reductions in costs. The main contributor was an engineer surveyor electing
to reduce his working week as a prelude to full retirement.
Personnel Health & Safety Consultants Limited (PHSCL)
* 2018: revenues of £615,700 yielding a profit of £240,000
* 2017: revenues of £666,900 yielding a profit of £218,900
Profit increased by 10% to £240,000 despite a £51,200 decrease in revenue.
The improved profit was a result of close control of expenditure, in
particular staff costs. PHSCL continues to be a net provider of resources to
other members of the group, with policy dictating that cross-charges are not
applied to reflect this contribution. Staff utilisation by the other
subsidiaries averaged 16% during the year so the improved profitability is
particularly encouraging in the current environment.
The reduction in revenue can partially be attributed to one of PHSCL’s
largest clients taking some of their work in house. It also reflects the
continuing high levels of competition, mainly from sole traders or small
partnerships that have lower overheads and can thus price very competitively
in what has become a mature and crowded market. The majority of PHSCL’s
revenue is obtained under a retainer service, with these clients often
purchasing additional consultancy or training days. Customer loyalty remains
high (over 70% of clients have been with PHSCL for 10 years or more) with a
large proportion of work coming from existing or former customers.
PHSCL has been working on transitioning its ISO 9001 quality management
processes into the new 2015 standard with the British Standards Institute
(BSI) and has recently been successful in attaining accreditation.
Maintenance of this standard with a reputable accreditation body helps to
promote PHSCL’s attention to quality of service.
Revenues in the subsidiary’s key product, the Appointed Safety Advisor
Service continue to be flat as customers either recruit in-house or prefer to
buy services on an ad-hoc basis and a key part of the business plan for the
coming year is to attract entirely new customers, whilst maintaining the
high-quality levels of support to those who are already established customers.
One area which has enjoyed significant growth has been the development of our
expert witness service which is growing from an ad-hoc service to one that has
achieved over 300% increase in revenue as the subsidiary becomes better known
within the legal profession. This is often complex and high profile work
which helps to promote the company’s reputation as an expert in the field of
occupational health and safety risk management.
QCS International Limited (QCS)
* 2018: revenues of £767,600 yielding a profit of £285,200
* 2017: revenues of £624,000 yielding a profit of £210,800
QCS continues to be a leader in the design, marketing and delivery of training
courses and consultancy to the ISO standards, which can be seen in the high
number of public training courses, in house training courses and new
consultancies delivered. QCS is highly regarded within its locale and has a
considerable share of the ISO training market for southern and central
Scotland. In 2017/18 QCS also benefitted from a small increase in work
outside of its core geographical area with clients being secured as far south
as Kent.
Revenues were up £143,600 (23%) compared to 2016/17 and the corresponding
profit before tax and central management charges increased by £74,400 (35%).
Performance exceeded management forecasts for both revenue and operating
profit. This was underpinned by high levels of client retention along with
the expansion of consultancy and training services. Additional services were
provided to longstanding customers and the company reaped the benefits of
market demand relating to the new ISO 9001 and ISO 14001 standards. The update
to standards continues to underpin a proportion of new sales although this
effect is slowly declining and will probably end during the next financial
year. Some benefit from the new ISO 45001 standard for health and safety
will be experienced, and evidence has already shown that sales of training in
this area for the year ahead will be good.
QCS retains approved training partner status with the International Register
of Certified Auditors (IRCA). The costs and benefits associated with
maintaining this relationship are regularly reviewed but this status continues
to differentiate the company from competitors.
Medical device consultancy and training continues to be a successful area of
the business. QCS is benefitting from changes in the medical device
regulatory structure that has increased enquiries and has also led to the
introduction of two new courses.
QCS launched a new website in May 2017. With carefully targeted advertising
and search engine optimisation it has been notable that there has been an
increase in enquiries from around the UK, with several leads from previously
unknown clients leading to sales.
Quality Leisure Management Limited (QLM)
* 2018: revenues of £439,400 yielding a profit of £111,900
* 2017: revenues of £437,100 yielding a profit of £74,300
Revenue for 2017/18 of £439,400 was similar to the prior year though greater
efficiency in delivery resulted in pre-tax profit of £111,900 before central
management charges compared to £74,300 in 2016/17. This was primarily the
result of a reduction in staff costs.
QLM continued to focus on core business objectives and key areas of income
generation in 2017/18, namely audits, training and accident investigation.
The support service is also key to QLM’s success in being able to support
the diverse and changing needs of its client base. Over £100,000 of revenue
was generated from auditing, representing an increase of 21%, utilising
QLM’s specialist skill sets. Accident investigation income remained
relatively constant given the nature of the work, but continues to be vital in
setting QLM apart from its competitors. It demonstrates the competence
within the broader QLM team and is a pre-requisite for supporting the
Chartered Institute of Environmental Health in delivery of sections of its
continuing professional development programme.
Other expenditure generally remained consistent with the previous year.
Technology and the associated infrastructure are vital to QLM and investment
has and will continue to be made in these areas. The server has been
replaced by a cloud-based system which has led to greater efficiency in
uploading and accessing data from a number of different platforms. An audit
specific cloud-based system is to be introduced during 2018/19 to accommodate
QLM’s Leisuresafe™ audits and health and safety reviews.
RSA Environmental Health Limited (RSA)
* 2018: revenues of £370,400 yielding a profit of £75,400
* 2017: revenues of £374,100 yielding a profit of £65,100
.
The principal activities of the company in the year under review were the
provision of health and safety consultancy services and training, together
with the sale of associated health and safety products. Revenue for the year
was marginally down on the previous year but despite this, there was an
increase in profitability due to cost control measures.
The past year has seen organic growth in activities where the strengths of the
company lie. New strategies are being developed to ensure that the
company’s offering is diversified and is relevant to the markets in which it
operates.
The core offering of SafetyMARK to the education sector remains the focus of
the company, with increased income year-on-year. Revenues broke through the
£100,000 barrier in this area despite cost pressures placed on schools and
the continued consolidation of schools into Multi Academy Trusts. The
company has increased the number of schools to which is provides services and
this continues to be a focus in 2018/19
Despite the focus on SafetyMARK, the past year has also seen strong growth in
other areas of the business. Training has seen an increase in the number of
courses being provided to clients and there continues to be demand for our
IOSH accredited school courses. Reducing the frequency of courses has
increased the average attendance, which has, in turn, resulted in an
improvement in profitability.
Food safety consultancy has seen some strong demand in the past year with
revenues being well above forecast. However, there are some significant and
increasing cost pressures within this market and clients see consultancy as
something of a luxury.
The continued success of SafetyMARK means that new enquiries from prospective
clients are strong. New business has been gained with a focussed marketing
strategy. The key will now be to ensure that profitability is maximised by
using the economies of scale afforded by a larger client base, as well as
ensuring that costs are well controlled and standard fees are reviewed, where
appropriate.
PHSC plc
* 2018: net loss of £521,700 before management charges, exceptional costs and
dividends received
* 2017: net loss of £501,100 before management charges, exceptional costs and
dividends received
The parent company incurs costs on behalf of the Group and does not generate
any income. The costs incurred by PHSC plc represent the costs of running an
AIM quoted Group and are consistent with the previous year.
On behalf of the board
Stephen King,
Group Chief Executive
13 August 2018
Group statement of financial position as at 31 March 2018
31.3.18 £ 31.3.17 £
Non-Current Assets
Property, plant and equipment 594,343 626,224
Goodwill 3,678,463 3,878,463
Deferred tax asset 21,105 21,693
4,293,911 4,526,380
Current Assets
Inventories 389,034 487,367
Trade and other receivables 1,568,625 1,447,493
Cash and cash equivalents 244,290 206,719
2,201,949 2,141,579
Total Assets 6,495,860 6,667,959
Current Liabilities
Trade and other payables 1,137,094 1,064,358
Current corporation tax payable 16,230 -
Contingent consideration - 25,000
1,153,324 1,089,358
Non-Current Liabilities
Deferred tax liabilities 55,818 57,800
55,818 57,800
Total Liabilities 1,209,142 1,147,158
Net Assets 5,286,718 5,520,801
Capital and reserves attributable to equity holders of the Group
Called up share capital 1,467,726 1,467,726
Share premium account 1,916,017 1,916,017
Capital redemption reserve 143,628 143,628
Merger relief reserve 133,836 133,836
Retained earnings 1,625,511 1,859,594
5,286,718 5,520,801
Group statement of comprehensive income for the year ended 31 March 2018
31.3.18 31.3.17
£ £
Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total
Revenue 6,635,012 377,852 7,012,864 6,339,091 823,208 7,162,299
Cost of sales (3,688,565) (248,886) (3,937,451) (3,475,427) (513,196) (3,988,623)
Gross profit 2,946,447 128,966 3,075,413 2,863,664 310,012 3,173,676
Administrative expenses (2,724,895) (317,604) (3,042,499) (2,814,360) (504,732) (3,319,092)
Goodwill impairment (200,000) - (200,000) (625,191) - (625,191)
Other income - 25,000 25,000 1,560 - 1,560
Profit/(loss) from operations 21,552 (163,638) (142,086) (574,327) (194,720) (769,047)
Fair value movement on contingent consideration - - - 50,000 - 50,000
Finance income 3 - 3 471 - 471
Finance costs (2,411) (1,367) (3,778) (1,187) (930) (2,117)
Profit/(loss) before taxation 19,144 (165,005) (145,861) (525,043) (195,650) (720,693)
Corporation tax (expense)/credit (17,511) 2,675 (14,836) 28,467 1,028 29,495
Profit/(loss) for the year after tax attributable to owners of the parent 1,633 (162,330) (160,697) (496,576) (194,622) (691,198)
Other comprehensive income - - - - - -
Total comprehensive income attributable to owners of the parent 1,633 (162,330) (160,697) (496,576) (194,622) (691,198)
Basic and diluted Earnings per Share from continuing operations 0.01p (1.11)p (1.09)p (3.53)p (1.38)p (4.92)p
Group statement of changes in equity for the year ended 31 March 2018
Share Capital Share Premium £ Merger relief reserve £ Capital Redemption Reserve £ Retained Earnings £ Total £
Balance at 1 April 2016 1,308,634 1,751,358 133,836 143,628 2,747,087 6,084,543
Loss for year attributable to equity holders - - - - (691,198) (691,198)
Issue of shares 159,092 164,659 - - - 323,751
Dividends - - - - (196,295) (196,295)
Balance at 31 March 2017 1,467,726 1,916,017 133,836 143,628 1,859,594 5,520,801
Balance at 1 April 2017 1,467,726 1,916,017 133,836 143,628 1,859,594 5,520,801
Loss for year attributable to equity holders - - - - (160,697) (160,697)
Dividends - - - - (73,386) (73,386)
Balance at 31 March 2018 1,467,726 1,916,017 133,836 143,628 1,625,511 5,286,718
Group statement of cash flows for the year ended 31 March 2018
Note 31.3.18 £ 31.3.17 £
Cash flows from operating activities:
Cash generated from operations I 143,360 124,925
Interest paid (3,778) (2,117)
Tax paid - (100,061)
Net cash generated from operating activities 139,582 22,747
Cash flows used in investing activities
Purchase of property, plant and equipment (19,358) (2,087)
Disposal of fixed assets 15,730 1,574
Interest received 3 471
Net cash used in investing activities (3,625) (42)
Cash flows used in financing activities
Payment of contingent consideration (25,000) (200,000)
Proceeds from placement of shares - 323,751
Dividends paid to Group shareholders (73,386) (196,295)
Net cash used in financing activities (98,386) (72,544)
Net increase/(decrease) in cash and cash equivalents 37,571 (49,839)
Cash and cash equivalents at beginning of year 206,719 256,558
Cash and cash equivalents at end of year 244,290 206,719
Notes to the Group statement of cash flows
31.3.18 £ 31.3.17 £
I. CASH GENERATED FROM OPERATIONS
Operating loss – continuing operations (142,086) (719,047)
Depreciation charge 34,590 44,089
Goodwill impairment 200,000 625,191
Fair value movement on contingent consideration - (50,000)
Loss on sale of fixed assets 919 5,545
Decrease/(increase) in inventories 98,333 (70,996)
(Increase)/decrease in trade and other receivables (121,132) 447,384
Increase/(decrease) in trade and other payables 72,736 (157,241)
Cash generated from operations 143,360 124,925
Notes to the results announcement of PHSC plc
The financial information set out above does not constitute the Group's
financial statements for the years ended 31 March 2018 or 31 March 2017, but
is derived from those financial statements. Statutory financial statements
for 2017 have been delivered to the Registrar of Companies and those for 2018
have been approved by the board and will be delivered after dispatch to
shareholders. The auditors have reported on the 2017 and 2018 financial
statements which carried an unqualified audit report, did not include a
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
computed 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 preparation of this
announcement are consistent with those in the full financial statements that
have yet to be published.
Annual General Meeting
This year’s annual general meeting (“AGM”) will be held at 10.00am on
Monday 24 September 2018 at The Old Church, 31 Rochester Road, Aylesford, Kent
ME20 7PR.
The report and accounts and notice of the AGM are expected to be posted to
shareholders on or around 23 August 2018 and will shortly be available to view
on the Company’s website at www.phsc.plc.uk.
Dividend
The board did not declare a final dividend for the year ended 31 March 2017.
An interim dividend of £73,386 was paid in February 2018 in respect of the
year ended 31 March 2018. The board is proposing a final dividend of 0.5p
payable on 12 October 2018 to shareholders on the register on 28 September
2018 making a total of 1.0p for the year.
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