5 August 2016
PHSC PLC
(the “Company” or the “Group”)
Preliminary Results for the year ended 31 March 2016
Highlights
• Underlying EBITDA* fell to £0.368m, down
from £0.818m
• Group revenue fell to £7.0m compared
with £7.7m last year
• Cash reserves of £0.256m at year end
compared to £0.462m last year
• Write-down of £0.609m due to impaired
goodwill
• Group net assets fell to £6.09m from
£6.6m after goodwill impairment
• Loss per share of 3.23p compared with
last year’s profit per share of 2.75p
• Loss after tax of £414k compared with a
profit of £349k last year
• Proposed final dividend held at 1.5p per
share
*Underlying EBITDA is calculated as earnings before interest, tax, depreciation, amortisation, acquisition costs and
exceptional items.
I am pleased to present my review of the Group's performance over the year, and to update shareholders on the continuing
progress made at PHSC plc.
Key developments and outlook
PHSC plc, through its trading subsidiaries, is a leading provider of health, safety, hygiene and environmental consultancy
services and security solutions to the public and private sectors. The majority of the Group’s revenue has traditionally been
generated by health and safety businesses. Income streams include asbestos management, the delivery of accredited and bespoke
training courses, public transport safety consultancy, and supporting the education sector. The Group also has many contracts in
the leisure sector and carries out statutory examination of plant and machinery via insurance brokers or directly for clients. In
addition, it provides consultancy and training in quality systems management.
In 2012 the Group extended its offering to include security solutions such as CCTV and tagging systems, mainly in the retail
sector. To widen and strengthen the Group’s presence in this area, two acquisitions were made in late 2015. One of those
businesses, Camerascan CCTV Limited (Camerascan), has been integrated into our B to B Links Limited subsidiary (B to B) as a
trading name. It gives B to B the ability to supply CCTV into new markets outside of high street retail. Further commentary
on the acquisition is given later in this report.
The larger new addition to the Group’s portfolio was SG Systems (UK) Limited (SG), which trades in the same sectors as B to B
but has a different client base. The acquisition arrangements provide that this company will stand alone for two years until an
earn-out timetable has been completed. Following this, the Group will formally consolidate the businesses of B to B and SG to
create a security division. There is already much interchange and overlap in the respective business activities.
In due course the Group will look to form a safety division to run parallel with the security division. This will consist of
those remaining legacy businesses able to demonstrate continued potential in what has become an extremely challenging
marketplace. This strategy will involve some internal consolidation and possibly divestment or winding down of unprofitable
activities. The board has taken advice on the carrying value of these businesses and has taken the decision to impair the
goodwill value of Adamson’s Laboratory Services Limited (ALS). This has the effect of creating a headline loss for the Group for
the financial year, and reduces our net asset value, as explained in greater detail elsewhere in this report. Sitting alongside
the new divisional structure as a standalone company will be our QCS International Limited (QCS) subsidiary which operates in the
field of quality systems management.
Acquisition payments
Consideration for Camerascan was £125,000 in cash along with the issue of 300,000 ordinary shares of 10p each in PHSC plc.
There are no further payments due.
Consideration in relation to the acquisition of SG comprised an initial cash payment of £275,000 along with the issue of
100,000 new ordinary shares of 10p each of PHSC plc. Under the terms of the agreement, a further cash payment of £200,000 falls
due on the first anniversary and a final cash payment on the second anniversary. The final payment is in the range of £25,000 to
£375,000 and is determined by a formula that relates to performance over the period. The fair value of contingent consideration
at the year end was £75,000 and has been included in the accounts as a liability arising in over one year. SG is
underperforming due to matters outside of its control and expanded upon later in this report. Should this underperformance not be
reversed over the period, the final payment would be limited to £25,000 and this would release £50,000 back to the income
statement.
Legal and management costs associated with the two acquisitions are charged against the profit and loss account under
accounting rules. These were £50,000 in total.
Net asset value
As at 31 March 2016, the company had consolidated net assets of £6.09 million. There were
13,086,353 ordinary shares in issue at that date which equates to a net asset value per share of 47p. The ordinary shares of the
company continue to trade at a discount to the net asset value. A large proportion of the company’s assets consists of goodwill
associated with the various acquisitions it has made. Each year the level of goodwill relating to subsidiaries is reviewed to
make sure that their values on the group statement of financial position can still be justified. Given the difficult trading
conditions experienced by ALS, and in accordance with requirements of accounting standards, we are making an impairment of around
£0.6m in the carrying value of goodwill in respect of ALS. This represents a reduction of approximately 9% in the consolidated
net assets of the Group. The board remains comfortable with all other valuations.
Outlook
In our last Annual Report we stated that a high-value contract relating to asbestos consultancy services provided by ALS was
concluding. We explained that we did not expect the subsidiary to be able to fully compensate for this lost income. As evidenced
by the full year’s results and the charge against goodwill carrying value, ALS was indeed unable to win sufficient new work over
the period. Current expectations are for this difficult trading position to persist in the asbestos consultancy
marketplace. When considering how best to introduce the divisional structure referred to earlier in the report, the Group will
evaluate how it should deliver asbestos management services in the future.
The effect of the EU referendum result on the Group will take some time to be become apparent. There is a direct impact
because our security-related subsidiaries B to B and SG are both routinely importing the electronic products they install and
supply. A weaker pound has a detrimental effect on gross margins. Indirect impacts will be those arising from how client
confidence at all Group subsidiaries is affected and whether there are any adjustments to UK economic policy. In addition,
particularly as far as the safety-related subsidiaries are concerned, there may be changes to existing EU-initiated regulatory
requirements that impact on the demand for services. Against this background we believe that the majority of retained
clients and those who have given us repeat business over many years will continue to provide a stable source of income.
Our security-related companies each have some exciting prospects for growth, in terms of additional sales of existing products
and in areas of technological innovation. Whilst we are confident of securing significant new orders, there can be a long
lead-in time between initial trials of a product and a decision by a national or international chain to make a firm commitment.
However, when work is obtained in this way, it can lead to sustained and long-term profitable relationships with high-profile
clients. There are a number of such projects at various stages of discussion and we would expect to see some benefits in the
current year.
With the exception of stage payments due under the terms of the purchase agreement for SG, there are no other acquisition
payments due and the Group is presently not considering any further acquisitions.
Performance by trading subsidiary
A review of the activities of each trading subsidiary is provided below. The profit figures stated are before tax and
management charges.
Adamson’s Laboratory Services Limited (ALS)
- 2016: sales of £1,825,600 yielding a profit of £76,800
- 2015: sales of £2,694,500 yielding a profit of £276,300
Following the ending of a contract with a large London university at the start of the
financial year, turnover decreased significantly over the period. The contract had accounted for around a third of
asbestos-related sales and this type of work is the primary activity of the company. This reduction in work had a material
effect on performance such that the business made a loss after management charges for the year.
The business has made significant cost reductions in both cost of sales and general expenditure to compensate for the loss of
revenue, but the benefit of cost savings takes time to filter through.
The level of asbestos consultancy remained consistent with other clients.
The health and safety department’s turnover decreased slightly but the integration of Envex continues to work well and the
volume of occupational hygiene consultancy showed some growth.
Two full-time members of staff continue to be supplied to another high-profile university, fulfilling the asbestos manager and
assistant roles.
Repeat business was won throughout the year, with several blue chip clients in the private sector, and from local
government.
ALS has successfully maintained its accreditation with UKAS ISO 17020, 17025 and ISO 9001. In addition, the company has
achieved accreditation to ISO 14001.
B to B Links Limited (B to B)
- 2016: sales of £2,551,800 yielding a profit of £134,200
- 2015: sales of £2,604,100 yielding a profit of £357,100
During 2016 B to B generated revenues of £2,551,764, consistent with performance in 2015 and 2014. As in 2015, the majority of
revenues in 2016 came from national accounts, primarily in the department store, fashion retail and builders merchant
sectors. The year also saw an important turning point in independent retail sales activity which grew for the first time
following the acquisition of B to B by PHSC plc. During December 2015, the non-retail CCTV
activities of Camerascan were integrated into B to B. Non-retail CCTV sales amounted to £88,134 in the three and a half
months following acquisition.
After a busy end to the year ended 31 March 2015, April and May started slowly, primarily
because of a hiatus in store upgrade projects in one key account and another customer’s restructuring of its property team.
However, this was followed by a very busy Q2 during which B to B installed and commissioned CCTV and security tagging equipment
in five new department stores in England and Wales. Strong sales continued into the first
part of Q3, but December sales, already normally subdued during peak retail trading, were further hampered by short-term CCTV
supply chain issues which caused project delays and demanded significant management time to resolve. A strong January was
followed by weaker than forecast independent sales in February and March. At the same time, overheads were higher due to
integration of Camerascan. Taken together with the impact of the slow start to Q1, and the poorer than expected end to Q3,
profits for the year were lower than anticipated.
The significant weakening of sterling against both the euro and dollar in 2016 has also had a modest negative impact on cost
of sales and gross margins. Set against this, cost negotiations with CCTV suppliers brought improved margins mid-way
through the year, the benefit of which will continue to be felt in 2017.
The addition of SG to the Group has been well received by B to B’s customers and is already presenting useful opportunities
for mutual cross-selling to B to B’s and SG’s existing accounts as well as group trade buying (e.g - on security tags).
B to B’s retail customer base has performed strongly during 2016 and existing key accounts all have clear plans to invest in
property projects and associated CCTV and security tagging hardware during 2017. Global acquisitions of key competitors in both
radio frequency and acousto-magnetic security tagging technologies may also provide opportunities to grow market share.
Key priorities for 2017 are to grow B to B sales by further developing existing accounts, achieving much stronger growth in
independent sales, both retail and non-retail and maintaining tight control on costs.
Inspection Services (UK) Limited (ISL)
- 2016: sales of £219,600 yielding a profit of £40,300
- 2015: sales of £195,900 yielding a profit of £17,100
ISL carries out statutory examinations and inspections on behalf of a broad range of clients, either directly or via
commission-based agreements with insurance brokers.
The examinations carried out are in relation to requirements placed upon employers by health and safety legislation.
New sales, both to direct clients and in respect of work obtained via insurance brokers, showed an increase. The
majority of existing clients also remained with the business, and this led to an improvement in annual revenues to £219,600 from
£195,900 the year before.
Management charges from the parent company were lower than those in previous years. With a cost base that is otherwise largely
fixed, the additional sales income and reduced charge led to pre-tax profits of £34,800, representing a substantial increase on
those of last year.
Around 80% of income is obtained from the insurance sector. This is because statutory examinations continue to be perceived by
many clients as “insurance inspections”. Many brokers prefer to use independent engineers such as ISL, rather than the costlier
agencies of those insurance companies who run their own inspection teams. The efficient and reliable service given by ISL’s
administrative and engineering staff is a factor in the large percentage of repeat work that is enjoyed.
Personnel Health & Safety Consultants Limited (PHSCL)
- 2016: sales of £703,300 yielding a profit of £276,100
- 2015: sales of £753,800 yielding a profit of £332,100
Revenues and profits for the year were both lower than the previous year and reflected the continuing difficulty associated
with selling services into a mature marketplace.
The management charge levied by PHSC plc, the parent company, fell by 30% as higher charges were raised from other members of
the group. This softened the effect of reduced income.
As in previous years, income was underpinned by the high proportion of repeat business and the revenues from the
retainer-based Appointed Safety Advisor Service. There was limited success in supplementing this income with additional ad
hoc sales but this is proving increasingly challenging.
PHSCL continues to be the largest net provider of consultancy and training services to clients of other members of the PHSC
plc group. In line with the policy of the parent company, there is no cross-charging and hence the revenues for the year do
not reflect the volume of work delivered.
During the year, the company took on a new employee via the Government’s apprenticeship programme. The apprentice is learning
how to increase the company’s profile via social media and internet/email marketing.
QCS International Limited (QCS)
- 2016: sales of £528,000 yielding a profit of £122,700
- 2015: sales of £526,800 yielding a profit of £148,100
In the financial year 2015/16, QCS maintained the turnover achieved in 2014/15 but experienced a fall in profits. Projected
revenues and margins were based on increased training and consultancy sales expected to be generated by the updated standards ISO
9001 and ISO 14001 that had been due for release in July 2015. Consultancy and training associated
with these standards are core to the QCS business model.
There was a delay by the International Standards Organisation and the British Standards Institution in publishing the new
standards, which were eventually released in late September 2015. This caused a three-month drop in
sales as clients were forced to defer their consultancy and training activity until the updated standards became available. The
delay was not something that QCS could have predicted.
QCS was a forerunner from September onwards in the design, marketing and delivery of training courses and consultancy to the
ISO standards. This is evidenced by the high number of public training courses, in house training courses and new consultancies
delivered. To have completed the financial year with a turnover of £528,000 and a profit of £122,700 against the background
of an enforced hiatus in the ability to provide a full service offering demonstrates the strength of the QCS brand.
QCS continues to demonstrate high levels of customer retention and has seen a steady growth in new clients to the consultancy
portfolio. With a new specialist medical device practitioner in place, QCS is now well placed to gain medical device
consultancies in areas which were previously not available. The medical device sector is about to undergo a significant change
with updates to regulatory requirements and to the requirements of ISO 13485, Growth is expected in this sector and will be
supported by the design of a dedicated QCS medical device website. There will be specific marketing projects to secure further
work in this field, which generates a higher rate of income for QCS.
In the last quarter of the financial year, demand for training rose significantly and assisted with mitigating the adverse
impact of the delay in the publication of new standards.
In 2016/17 there will be significant changes to the main health and safety standards for which QCS offers training and
consultancy services. This presents a growth opportunity, whereby QCS can promote its ability to support those companies who wish
to prepare for the revised standards. The British Standard OHSAS 18001 is expected to be withdrawn when international standard
ISO 45001 takes effect. This will see clients begin to transition over to the new standard, which is scheduled to be
published in the second half of the financial year. QCS remains well positioned within the market place to take advantage
of this change with both existing and new clients seeking assistance to ensure compliance.
Quality Leisure Management Limited (QLM)
- 2016: sales of £506,290 yielding a profit of £95,900
- 2015: sales of £533,900 resulting in a profit of £123,800.
The business went through significant change following the appointment of a new managing director to replace the company’s
founder as he moves towards retirement.
Turnover for the year ended 31 March 2016 was £506,284 compared with £533,932 in the previous
period but the pre-tax profit of around £63,000 was seen as satisfactory. Staffing costs were higher at the beginning of
the year during the transition to new management.
The company’s core consultancy business continues to develop and adapt to the changing environment and client base,
particularly around the broader leisure, culture and general practitioner work. Accident investigation was up on
projection, where expert testimony has been provided in numerous cases. This brings in additional income that, given the
nature of the work, is hard to predict, but also continues to demonstrate QLM’s level and scope of expertise.
Engagement with and development of a key auditing product with a major insurance company has not progressed as well as
anticipated. Sales of publications developed for the Chartered Institute for the Management of Sport and Physical Activity
were low, as the Institute has yet to release new versions for sale.
Income from quality consulting was higher than anticipated as a result of the continued development of integrated management
system (IMS) projects. The system which is bespoke to the organisation continues to be developed by existing users, with others
showing interest and providing income at the initial assessment stage.
The strategic alliance with Poseidon Technologies is continuing. They offer a computer vision surveillance system that
recognises texture, volume and movement within a pool and that continually analyses the swimmers, alerting lifeguards to a
potential accident. There were no new installations in the year, despite some very significant leads. Poseidon has engaged
Alliance Leisure to assist with financing the installation, which again, is seen as a significant barrier to business despite the
obvious benefits of the system.
Expenditure has increased in computer and IT support as well as travel and accommodation. Both are essential to our
business operation as a UK wide consultancy, reliant on IT to be able to work and access servers, files and information
remotely. Some system development is scheduled for the next two years as systems are updated and developed.
RSA Environmental Health Limited (RSA)
- 2016: sales of £413,100 yielding a profit of £72,900
- 2015: sales of £421,900 yielding a profit of £34,900.
Revenue has continued to fall year on year, as the company moves closer to completing its transition away from the provision
of low-margin services to the public sector to higher margin private sector services. The benefit of this change in
strategy is that profitability has increased in the past year.
The business has had to make some significant adjustments as a result of changes to two key posts in the course of the
year. Following the resignation of the previous managing director, the role was assumed by Justin
Smith. Mr Smith has a long history with the company, having been in an operational management role since incorporation.
Since his promotion, Mr Smith has been working tirelessly to ensure that the effect of the change in leadership has been
minimised.
With great regret, the company lost a long-standing member of staff in Mrs Carol Hudson,
customer services manager, after a short battle with cancer. Mrs Hudson was a key part of the SafetyMARK offering because of her
personality and ability to deal with customer relations. Her loss has left a significant gap in the business and it has taken
some time for existing and new staff to acquire the necessary skills and knowledge to cover the gap and maintain the service that
our customers expect.
Finally, the business parted company with a long-standing consultant employee whose role was to deliver health and safety
consultancy services for the company. The individual was not intrinsic to the SafetyMARK scheme but had supported our
non-education clients. The skills gap has been covered by resources from other companies within the PHSC plc group and by
the use of trusted external consultants.
The main focus for the business continues to be supporting schools with the management of health and safety via the SafetyMARK
service core offering. The upselling of consultancy services back into schools continues to be strong, with training and
the undertaking of fire risk assessments taking the lead. To further develop the scheme, the focus of attention has moved
from trying to obtain single school sites to providing the services to multi-academy trusts. Academy schools are beginning to
cluster together to achieve cost savings due to economies in scale. 2015-16 has seen some success in this area with four
multi-academy trusts being signed up. These trusts are growing entities and as the number of schools following these models
increase, our revenues should steadily grow.
The London Borough of Redbridge has continued to promote SafetyMARK as an alternative safety
support service to that previously provided by the local authority. The business has seen some growth in this area in the past
year with the continued provision of audits and support as well as providing health and safety training within the borough.
Currently there are 22 schools within the borough signed up to the scheme.
SG Systems (UK) Limited (SG)
- 2016: sales of £256,700 yielding a loss of £68,900 (3.5 months)
SG joined the PHSC plc group in mid-December 2015. In addition to security tagging and CCTV, SG brings expertise in RFID
(radio frequency identification), merchandising point of sale and product presentation protection (e.g. mobile phones and
tablets), customer counting and other systems focused on supporting profit growth for retailers.
SG’s retail customer base is complementary to that of other group members, with blue chip clients in the department store,
grocery, newsagent, fashion and sports sectors. The company has a growing reputation for anti-theft solutions in the public
sector, such as radios and keys in prisons and NHS secure units as well as school library books. SG is also active in
source tagging (the supply of security labels for application at the point of manufacture).
The company’s existing sales, technical and administration team has continued to operate from its base in Amesbury,
Wiltshire with continuity of operational management provided on a consultancy basis by the
previous owners during the earn-out period. SG’s existing customers and key suppliers have reacted positively to news of
the acquisition and the longer term potential of the business within PHSC plc.
SG’s sales in the three and a half months to 31 March 2016 were below forecast at £256,700.
This was principally due to slippage in the start date for two new department stores, and a major hiatus in store refits
and new store openings for SG’s major grocery customer following its decision to acquire another retailer. In both cases,
these impacts, while negative, are expected to be short-term, with activity levels expected to improve later in the year.
SG’s key priorities for 2016/17 include sales growth through the development of existing accounts and acquisition of new
accounts, the utilisation of new or emerging products (e.g. RFID) to support these objectives, and a continued focus on trade and
other operating costs.
As the Group has already experienced, the timing of retail investment is unpredictable and sometimes frustrating.
However, SG’s relationships with its key customers are excellent and the company has a strong and evolving product range.
It is therefore well placed to respond to store development projects once strategic decisions have been made by customers in
relation to space planning.
On behalf of the board
Stephen King
Group Chief Executive
5 August 2016
Group Statement of Financial Position
|
|
|
31.3.16
£ |
|
31.3.15
£ |
Non-Current Assets |
|
|
|
|
|
Property, plant and equipment |
|
|
675,345 |
|
689,595 |
Goodwill |
|
|
4,503,654 |
|
4,579,976 |
Deferred tax asset |
|
|
497 |
|
- |
|
|
|
|
|
|
|
|
|
5,179,496 |
|
5,269,571 |
Current Assets |
|
|
|
|
|
Inventories |
|
|
416,371 |
|
215,591 |
Trade and other receivables |
|
|
1,894,875 |
|
1,979,918 |
Cash and cash equivalents |
|
|
256,558 |
|
462,392 |
|
|
|
|
|
|
|
|
|
2,567,804 |
|
2,657,901 |
Total Assets |
|
|
7,747,300 |
|
7,927,472 |
Current Liabilities |
|
|
|
|
|
Trade and other payables |
|
|
1,221,599 |
|
1,155,824 |
Current corporation tax payable |
|
|
103,403 |
|
105,245 |
Deferred consideration |
|
|
200,000 |
|
- |
|
|
|
|
|
|
|
|
|
1,525,002 |
|
1,261,069 |
Non-Current Liabilities |
|
|
|
|
|
Deferred tax liabilities |
|
|
62,755 |
|
67,537 |
Contingent consideration |
|
|
75,000 |
|
- |
|
|
|
|
|
|
|
|
|
137,755 |
|
67,537 |
Total Liabilities |
|
|
1,662,757 |
|
1,328,606 |
Net Assets |
|
|
6,084,543 |
|
6,598,866 |
Capital and reserves attributable to equity holders of the Group |
|
|
|
|
Called up share capital |
|
|
1,308,634 |
|
1,268,634 |
Share premium account |
|
|
1,751,358 |
|
1,751,358 |
Capital redemption reserve |
|
|
143,628 |
|
143,628 |
Merger relief reserve |
|
|
133,836 |
|
79,836 |
Retained earnings |
|
|
2,747,087 |
|
3,355,410 |
|
|
|
|
|
|
|
|
|
6,084,543 |
|
6,598,866 |
Group Statement of Comprehensive Income
|
|
|
31.3.16
£ |
|
31.3.15
£ |
Continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
7,004,340 |
|
7,730,900 |
|
|
|
|
|
|
Cost of sales |
|
|
(3,803,240) |
|
(4,226,206) |
|
|
|
|
|
|
Gross profit |
|
|
3,201,100 |
|
3,504,694 |
|
|
|
|
|
|
Administrative expenses |
|
|
(2,930,931) |
|
(2,738,562) |
Administrative expenses - exceptional |
|
|
(608,936) |
|
(262,758) |
|
|
|
|
|
|
(Loss)/profit from operations |
|
|
(338,767) |
|
503,374 |
|
|
|
|
|
|
Finance income |
|
|
1,052 |
|
750 |
Finance costs |
|
|
(8) |
|
(796) |
|
|
|
|
|
|
(Loss)/profit before taxation |
|
|
(337,723) |
|
503,328 |
|
|
|
|
|
|
Corporation tax expense |
|
|
(75,920) |
|
(154,601) |
|
|
|
|
|
|
(Loss)/profit for the year after tax attributable to owners |
|
|
|
|
|
of the parent |
|
|
(413,643) |
|
348,727 |
|
|
|
|
|
|
Other comprehensive income |
|
|
- |
|
- |
|
|
|
|
|
|
Total comprehensive income attributable to owners of |
|
|
|
|
|
the parent |
|
|
(413,643) |
|
348,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted Earnings per Share from continuing operations |
|
|
(3.23)p |
|
2.75p |
Group Statement of Changes in Equity
|
Share
Capital
£ |
Share
Premium
£ |
Merger
relief
reserve
£ |
Capital
Redemption
Reserve
£ |
Retained
Earnings
£ |
Total
£ |
Balance as at 1 April 2014
(as previously reported) |
1,268,634 |
1,831,194 |
- |
143,628 |
3,196,978 |
6,440,434 |
Prior year adjustment re share issues* |
- |
(79,836) |
79,836 |
- |
- |
- |
Balance as at 1 April 2014 (restated) |
1,268,634 |
1,751,358 |
79,836 |
143,628 |
3,196,978 |
6,440,434 |
Profit for year attributable to equity holders |
- |
- |
- |
- |
348,727 |
348,727 |
Dividends |
- |
- |
- |
- |
(190,295) |
(190,295) |
Balance at 31 March 2015 |
1,268,634 |
1,751,358 |
79,836 |
143,628 |
3,355,410 |
6,598,866 |
|
|
|
|
|
|
|
Balance at 1 April 2015 |
1,268,634 |
1,751,358 |
79,836 |
143,628 |
3,355,410 |
6,598,866 |
Loss for year attributable to equity holders |
- |
- |
- |
- |
(413,643) |
(413,643) |
Issue of shares on acquisition |
40,000 |
- |
54,000 |
- |
(4,385) |
89,615 |
Dividends |
- |
- |
- |
- |
(190,295) |
(190,295) |
Balance at 31 March 2016 |
1,308,634 |
1,751,358 |
133,836 |
143,628 |
2,747,087 |
6,084,543 |
|
|
|
|
|
|
|
Group Statement of Cash Flows
|
Note |
|
31.3.16
£ |
|
31.3.15
£ |
Cash flows from operating activities: |
|
|
|
|
|
Cash generated from operations |
I |
|
414,062 |
|
739,423 |
Interest paid |
|
|
(8) |
|
(796) |
Tax paid |
|
|
(83,041) |
|
(177,057) |
Net cash generated from operating activities |
|
|
331,013 |
|
561,570 |
|
|
|
|
|
|
Cash flows used in investing activities |
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(35,654) |
|
(58,952) |
Payments in relation to acquisitions (net of cash acquired) |
|
|
(262,674) |
|
- |
Disposal of fixed assets |
|
|
724 |
|
450 |
Interest received |
|
|
1,052 |
|
750 |
Net cash used in investing activities |
|
|
(296,552) |
|
(57,752) |
|
|
|
|
|
|
Cash flows used by financing activities |
|
|
|
|
|
Payment of deferred consideration |
|
|
(50,000) |
|
- |
Payment of contingent consideration on acquisitions |
|
|
- |
|
(563,528) |
Dividends paid to Group shareholders |
|
|
(190,295) |
|
(190,295) |
Net cash used by financing activities |
|
|
(240,295) |
|
(753,823) |
|
|
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
|
(205,834) |
|
(250,005) |
Cash and cash equivalents at beginning of year |
|
|
462,392 |
|
712,397 |
Cash and cash equivalents at end of year |
|
|
256,558 |
|
462,392 |
|
|
|
|
|
|
Notes to the Group Statement of Cash Flows
|
|
|
31.3.16
£ |
|
31.3.15
£ |
|
|
|
|
|
|
I. CASH GENERATED FROM OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
Operating profit – continuing operations |
|
|
(338,767) |
|
503,374 |
Depreciation charge |
|
|
46,882 |
|
52,249 |
Goodwill impairment |
|
|
608,936 |
|
29,230 |
Fair value movement in contingent consideration |
|
|
- |
|
233,528 |
Loss on sale of fixed assets |
|
|
2,298 |
|
12,320 |
Increase in inventories |
|
|
(28,179) |
|
(61,321) |
Decrease/(increase) in trade and other receivables |
|
|
381,937 |
|
(44,638) |
Increase in trade and other payables |
|
|
(259,045) |
|
21,179 |
Decrease in financial liabilities |
|
|
- |
|
(6,498) |
Cash generated from operations |
|
|
414,062 |
|
739,423 |
|
|
|
|
|
|
Notes to the preliminary 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 2016 or 2015, but is derived from those financial statements. Statutory financial statements for 2015
have been delivered to the Registrar of Companies and those for 2016 will be delivered following their approval by the board and
dispatch to shareholders. The auditors have not yet reported on the 2016 financial statements.
Whilst 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 Thursday 8 September 2016 at The Old Church, 31 Rochester Road, Aylesford, Kent ME20 7PR.
Copies of the full report and accounts and notice of the AGM will be posted to shareholders and will be available to view on
the company’s website at www.phsc.plc.uk
Dividend
The Board is proposing a maintained final dividend of 1.5p per ordinary share to be paid on 30
September 2016 to shareholders on the register on 19 August 2016 subject to approval of
shareholders at the AGM.
This announcement contains inside information for the purpose of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.
Contact information
For further information please contact:
PHSC plc |
Stephen King
stephen.king@phsc.co.uk |
01622 717700 |
Northland Capital Partners Limited (Nominated Adviser) |
Edward Hutton
David Hignell |
0203 861 6625 |
Beaufort Securities Limited (Broker) |
Elliot Hance |
020 7382 8300 |