REG-PHSC Plc: Trading Update

PHSCAnnouncement

07/06/2019 07:05

7 June 2019

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 2019.

Consolidated Group revenue for the period was approximately £5.21 million (31
March 2018: £7.01 million), and after premises costs and the exceptional gain
detailed below, the Group achieved positive EBITDA of approximately £318,950
for the period (31 March 2018: approximately £92,500 after stock write-off
and redundancy costs in that year).

The reduction in revenue is largely attributed to a significant decline in the
sale of security solutions to retail clients as highlighted in our interim
results.  This was impacted in particular by the temporary cessation of new
works from the Group’s largest client in terms of revenues, as they went
through a protracted restructuring process.  On the positive side, the final
restructure recently agreed by means of a CVA did not involve the write-down
of any monies owed to ourselves, and business from that client has since seen
a small recovery.

During the financial year there has also been considerable change to the
premises occupied across the Group, with leases coming to an end in Wiltshire
and Gloucestershire, and one freehold disposed of in Essex.  The costs of
relocation and dilapidations was more than offset by the one-off accounting
gain of £166,000 associated with the sale of the premises previously occupied
by our discontinued asbestos business.  Our Scottish subsidiary renewed a
lease and took on an adjacent unit, both of which involved substantial
investment.

Cash at bank as at 7 June 2019 was approximately £620,000 and the Company
continues to maintain a facility with its bankers.  In view of the improved
cash position following the property sale, the facility has been reduced at
the Company’s request from £300,000 to £150,000.

The above financial information is drawn from the Group’s management
accounts and is subject to audit and therefore may change.  The Group
currently expects to announce its Final Results for the year ended 31 March
2019 by mid-August 2019.  As part of the audit process, the Board will
consider whether any impairment provisions are necessary within the Group,
particularly given the depressed level of sales in the security division to
the retail sector.  The Board will also consider the possible write-down of
certain slow-moving stock now that the security business has moved to a single
warehouse facility.

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.

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/James Bellman

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.  B2BSG
Solutions Limited offers innovative security solutions including electronic
tagging, labelling and CCTV.



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