5th Aug 2016 08:29
LONDON (Alliance News) - PHSC PLC on Friday said it swung to a loss in its recently completed financial year following a decline in revenue and an increase in exceptional costs booked.
The company, which provides health, safety, hygiene and environmental consultancy services, said it made a pretax loss of GBP337,723 in the year to the end of March, compared to a GBP503,328 profit a year prior.
Revenue fell to GBP7.0 million from GBP7.7 million, and the company booked goodwill impairments on the value of Adamson's Laboratory Services Ltd. The goodwill writedown was booked as PHSC looks to restructure itself with the creation of a safety division to run alongside its security business.
PHSC said the impact Brexit will have on its business will take some time to quantify but said a direct impact will be had on its B to B Links and SG security units as both routinely import electronic products which they then install and supply. The weaker pound, therefore, will damage gross margins.
On a divisional basis, PHSC's Adam's Laboratory Services unit saw revenue decrease significantly after the end of a contract held with a large London university. Revenue in the B to B Links security unit was broadly flat in the year, while revenue dipped in its Quality Leisure Management unit and in its RSA Environmental Health arm.
PHSC maintained its final dividend at 1.50 pence per share.
PHSC shares were down 4.4% to 22.00p Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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