Trading Statement

Trading Update PHSC plc, the provider of health, safety and environmental services to corporate and public sector clients, is pleased to announce that trading in the third quarter of the current financial year fully met internal expectations and that management anticipate a similar performance in the fourth quarter. The Group currently have a record order book and continue to win new contracts. In particular, the recently acquired Adamson's Laboratory Services Limited now has a forward order book that approaches £3million. Management accounts have now been completed for the third quarter of the Group's trading year, covering the months of October, November and December 2005. The monthly average of sales in the third quarter was 20% higher than the monthly average sales achieved during the first half of the year which led to trading profits in the third quarter being 60% above the average for the previous two quarters. Sales for the first three quarters of the current financial year were £2.9m and the Group expects to be close to the top end of its internal target range of £ 3.8m to £4m of sales for the full year. Profits before plc charges and tax currently stand at £456,000. Plc charges are £95,000 in the year to date. It should be noted that the acquisition of Adamson's Laboratory Services Limited ('ALS') was completed in mid-June, thus approximately £400,000 of ALS sales will not be included in the Group's year-end profit and loss account. This will, however, have a relatively small effect overall as only £25,000 of profit arose from those sales. Prospects for wholly-owned subsidiaries: Personnel Health & Safety Consultants Limited ('PHSCL') The company recently announced that it had been awarded an improved contract with the Go-Ahead Group plc, valued at a minimum of £345,000 over three years. Subscriptions to the company's safety advisor service continue to provide a regular income, with £150,000 of subscriptions due in the last quarter of the financial year. The company is leading a group-wide initiative to promote this service through the use of a professional marketing organisation. RSA Environmental Health Limited ('RSA') The last part of the financial year is traditionally the busiest and most lucrative for RSA. Most of the company's work is for local authorities for whom 31 March is a significant date by which certain performance and budgetary targets must be achieved. ALS The company now has a forward order book which is approaching £3m, which is the highest in the company's history. This includes substantial ongoing contracts with local authorities, property management companies, the leisure sector, housing associations, universities and other institutions. The demand for asbestos management services continues to increase and the company is working to full capacity over the last quarter of the financial year. New accounting disciplines have been introduced and this will lead to the cessation of a factoring arrangement in February, with a saving of £3,000 per month. Health and Safety Click Limited ('HSCL') This company was acquired for its future potential and a loss in the financial year was anticipated. Management are predicting improvement in sales over the coming months, and a narrowing of losses. The Group does not expect to be called upon for the maximum investment of £75,000 pledged at the time of acquisition, and is confident that future annuity income from subscribers to HSCL's on-line services will enable the company to become profitable in the medium term whilst producing additional revenues or the other subsidiaries.

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PHSC (PHSC)
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