REG-PHSC Plc: Trading Update

PHSCAnnouncement

13/05/2021 07:05

13 May 2021

PHSC PLC

(“PHSC” or the “Company”)

Trading Update

PHSC (AIM: PHSC), a leading provider of health, safety, hygiene and
environmental consultancy services and security solutions to the public and
private sectors, announces an unaudited update on its performance for its
financial year ended 31 March 2021 and summary of the effect of the COVID-19
pandemic on the Group’s activities.

Trading for the year ended 31 March 2021

Unaudited management accounts for the year ended 31 March 2021 show
consolidated Group revenue of approximately £3.29 million (31 March 2020:
£4.44 million) and underlying EBITDA of approximately £520,000 for the
period (31 March 2020: £255,000). As at 31 March 2021, the unaudited net
asset value per share was approximately 35.42 pence.

Revenues for the second half of the financial year to 31 March 2021 were
approximately £1.92 million, representing an improvement on H1 revenues
(approximately £1.38 million) as the Group adapted to changes in the economic
environment caused by COVID-19. Similarly, there was an improvement in EBITDA
from approximately £182,000 in H1 to approximately £338,000 in the second
half of the financial year to 31 March 2021.

The Group was heavily reliant upon the Coronavirus Job Retention Scheme in the
first half, but less so in the second half, and income under that scheme along
with grant funding totalled approximately £440,000 for the financial year to
31 March 2021.

The Group’s health and safety division saw increased activity over the
financial year in certain operational segments, such as risk assessment, but
was unable to service many clients in the leisure and education sectors due to
the requirement for their premises to close or to operate at a reduced
capacity as a result of COVID-19 restrictions. Our management systems
subsidiary remained profitable despite reduced revenues. The security
division, which is primarily a supplier to the retail sector, continued to
suffer as a consequence of lockdown and the closure of non-essential retail,
however, with grant funding and the Coronavirus Job Retention Scheme
contribution, it was able to operate at breakeven. There were also certain
corporate failures of clients such as Debenhams and Edinburgh Woollen Mill,
which resulted in the write-off of certain amounts due to the Group.

Full details regarding the performance of individual subsidiaries will be
provided at the time of the Company’s final results announcement for the
year ended 31 March 2021. All of the above financial information for the year
to 31 March 2021 has been extracted from the Group’s management accounts and
is subject to audit and consequently may change in due course. 

Current bank balances (as at 12 May 2021) stand at approximately £1.2
million, providing the Group with a strong cash position.

The Group currently expects to announce its final results for the year ended
31 March 2021 by the end of August 2021.  In line with its responsibilities
and as part of the audit process, the Board will consider whether any further
impairment provisions are appropriate in relation to the Group’s trading
subsidiaries.

The Group will continue to keep all COVID-19 related measures under review,
prioritising the safety of all of its stakeholders and will provide any
further updates as appropriate.

For further information please contact:

PHSC plc

Stephen
King                                                   
            Tel: 01622 717 700

Stephen.king@phsc.co.uk

www.phsc.plc.uk

Strand Hanson Limited (Nominated Adviser)              Tel: 020
7409 3494

James Bellman / Mathew 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.



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