PHSC plc, 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.