2nd Dec 2019 13:36
(Alliance News) - Health and safety consultancy PHSC PLC on Monday said a drop in sales of its core security division resulted in a sharp fall in first half profit.
The company, which provides health, safety and hygiene services and training, recorded a pretax profit of GBP155,000 for the six months to September 30, down 43% from GPB270,000 in the year ago period. Revenue declined 23% year-on-year to GBP2.2 million from GBP2.9 million.
First half earnings before interest, taxes, depreciation and amortisation improved 30% year-on-year to GBP175,000, aided by the company's lower overheads and premises related savings.
The company's security unit, B2BSG Systems Ltd, saw a 45% drop in first half sales to GBP935,356 resulting in a loss of GBP56,558 versus GBP65,319 profit. The unit contributes about 40% of PHSC's annual group revenue.
"Our security division saw a reduction in sales of around 45% as the customer base, predominantly high street retailers, continued to struggle, resulting in a loss for the first half. The effect has been mitigated to an extent by careful cost control and a reduction in staffing levels through normal staff turnover," PHSC said.
"After a prolonged period of low activity, the subsidiary's largest client has recently begun to place new business, and this gives more scope for optimism in the future. As has been previously reported, the weak sterling exchange rate impacts greatly on gross profit margins, as all product supplied and installed are imported and paid for in US dollars or euros," the company added.
The company declared an unchanged dividend of 0.5 pence per share for the interim period.
PHSC shares in London were up 4.5% at 11.50 pence each on Monday afternoon.
By Tapan Panchal; [email protected]
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