24th Sep 2018 12:11
LONDON (Alliance News) - Health & safety consultancy PHSC PLC reported Monday at its annual general meeting that profit and revenue were down over the four months of their financial year amid the discontinuing of some businesses.
For the four months ended July, earnings before interest, taxes, depreciation and amortisation fell to GBP125,000 from GBP134,000 the year prior. This was after revenue dropped to GBP2.0 million from GBP2.4 million the year before.
"The reduction in revenue can be attributed to the discontinuation of our asbestos consultancy business, Adamson's Laboratory Services Ltd, and lower income related to retail security products and services", PHSC Chief Executive Stephen King said at the meeting in Aylesford, Kent.
"The sale of our Essex property previously occupied by the asbestos management business is progressing and we expect to exchange contracts and to complete the sale shortly," King added. "We have agreed a reduction of approximately 5% to the original sale price to compensate for the buyer's likely costs to rectify certain structural defects uncovered during the survey process. After legal costs and agent's fees we anticipate there will be net cash proceeds of GBP290,000 from the sale, which will strengthen our overall cash position."
King added that should the property deal complete, the firm will use its new stronger cash position to reduce its debt facility with HSBC when it is due to be renewed in November. It plans to reduce its currently unused banking facility from GBP300,000 from GBP150,000.
PHSC expects to deliver its interim results for the six months ended September in "early" December.
Shares in PHSC were 6.9% higher at 13.62 pence on Monday.
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