Preliminary Results

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

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