5th Dec 2018 10:24
LONDON (Alliance News) - PHSC PLC on Wednesday said its profit rose significantly in the first half of its current financial year but revenue declined due to the termination of asbestos business operations.
The environmental consulting services company said pretax profit increased by half to GBP270,000 in the six months to the end of September from GBP178,000 reported for the same period a year earlier, after PHSC sold a property in Essex.
The disposed property was previously used by Adamson's Laboratory Services Ltd, PHSC's asbestos subsidiary, which was discontinued in March. In the first half of financial 2018, ALS generated revenue of GBP382,000.
The company said it gained GBP166,000 on disposal after sale fees and legal costs. As a result, PHSC declared an interim dividend of 0.5 pence a share.
The stock was trading 2.0% higher on Wednesday at 12.50p a share, giving PHSC a market capitalisation of GBP1.7 million.
PHSC's revenue declined 22% to GBP2.9 million from GBP3.7 million, due to a reduction in revenue from the company's Security division.
In the beginning of the first half, PHSC merged its Security businesses, comprising of B2B Links Ltd and SG Systems UK Ltd, into a single corporate entity, B2BSG Systems Ltd.
As part of the transformation, the company said it aims to create a single sales team and combined engineering department responsible for installations and servicing.
"In the short term, this amalgamation and streamlining process will involve some costs but longer term will give the business a lower overhead," PHSC explained in its statement.
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