REG-PHSC Plc: Trading Update

PHSCAnnouncement

08/06/2018 07:05

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 2018.

Consolidated Group revenue for the period was approximately £7.01 million (31
March 2017: £7.16 million).  The decline in revenues is due to the
asbestos-related operations of Adamson’s Laboratory Services Limited
(“ALS”) being discontinued during the year, resulting in ALS’s revenues
being approximately £440,000 lower than in the previous year and impacting
the Group’s revenue by a corresponding amount.

The Group achieved a positive EBITDA of approximately £184,000 for the year
ended 31 March 2018, before allowing for £47,000 of redundancy costs
associated with the closure of ALS, (31 March 2017: loss of £99,767).

Other ongoing financial consequence of ALS’s closure include the costs of
extricating the Group from long-term leases for various services, plant and
equipment associated with ALS’s operations.  In addition, certain owned
plant and equipment will be written off, the total cost of which is not yet
known.  Run-off insurance costs will also continue to be incurred for some
years.  On the positive side, the freehold of ALS’s unoccupied premises in
Essex are in process of being sold (subject to contract) for £320,000.  This
represents a sizeable premium to the book value of £170,000 and should the
sale complete, net cash proceeds to the Group are expected to exceed
£300,000.

Cash at bank as at 6 June 2018 was approximately £129,000 and the Company
continues to maintain a facility with its bankers of £300,000.

The above financial information is drawn from the Group’s management
accounts and is subject to audit.  The Group currently expects to announce
its Final Results in early August 2018.  As part of the audit process, the
Board will consider whether any impairment provisions are necessary within the
Group, although it should be noted that the carrying value of ALS has already
been fully impaired.

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

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. B to B Links
Ltd and SG Systems (UK) Ltd offer innovative retail security solutions
including tagging, labelling and CCTV.



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