Placing and Trading Update

27 September 2013 PHSC plc (the "Company" or the "Group") Placing and Trading Update PHSC plc ("the Group"), a leading provider of health, safety, hygiene andenvironmental consultancy services and security solutions to the public andprivate sectors, is pleased to announce that the Company has conditionallyraised £520,000 before expenses through a placing of 2,080,000 new OrdinaryShares of 10p each (the "Placing Shares") at a price of 25p per Placing Share(the "Placing"). The Placing was oversubscribed, primarily taken up byinstitutional investors, and included Director participation. The PlacingShares represent approximately 16 per cent. of the enlarged issued sharecapital. Trading update Management accounts for the first five months of the Company's financial year(unaudited), covering the period to end August 2013, show sales of £3,088,000and EBITDA of £233,300. The comparative period for last year showed sales of £1,766,000 and EBITDA of £50,700. Use of proceeds The net proceeds of the Placing are expected to amount to £482,000 and will beused as additional working capital to fund the continued growth of the Group. Directors' participation in the Placing Stephen King, Chairman and Chief Executive Officer, and Nicola Coote, ExecutiveDirector have respectively invested £25,000 and £15,000 in cash in the Placing.The table below sets out the interests of the Directors in the issued OrdinaryShares before and after the Placing. As at the date of this Immediately following announcement Admission Ordinary Shares % of issued Ordinary % of issued share Shares share capital capital Stephen King 3,103,100 29.26 3,203,100 25.25 Nicola Coote 3,084,342 29.08 3,144,342 24.79 Graham Webb 19,500 0.18 19,500 0.15 Michael _ _ _ _Miller The participation of Stephen King and Nicola Coote in the Placing is deemed arelated party transaction under the AIM Rules for Companies. Graham Webb andMichael Miller, having consulted with Northland Capital Partners Limited, theCompany's Nominated Adviser, consider that the terms of the participation ofStephen King and Nicola Coote in the Placing are fair and reasonable insofar asthe shareholders of the Company are concerned. The Placing The issue of the Placing Shares is conditional on Admission. Application hasbeen made for admission of the Placing Shares to trading on AIM ("Admission").Admission is expected to occur at 8.00 am on 1 October 2013. The Placing Shareswill be issued credited as fully paid and will rank pari passu in all respectswith the existing Ordinary Shares, including the right to receive all dividendsand other distributions declared on or after the date on which they are issued. Warrant issue In connection with the Placing, the Company has granted Northland CapitalPartners Limited warrants to subscribe for 100,000 new Ordinary Shares at 45pper share exercisable at any time for a period of two years followingAdmission. Total voting rights Following Admission, the Company's enlarged issued share capital will comprise12,686,348 Ordinary Shares. The Company does not hold any shares in treasury.Therefore, the total number of Ordinary Shares with voting rights is12,686,348. This figure may be used by shareholders in the Company as thedenominator for the calculations by which they will determine if they arerequired to notify their interest in, or a change in their interest in, theshare capital of the Company under the FCA's Disclosure and Transparency Rules. CEO Stephen King, commenting on the Placing, said: "After factoring in thestage payments related to our two most recent acquisitions, the board felt thatit was appropriate to seek additional working capital. The purpose of thefunding is to enable the continued growth of the Group, and to reduce ourreliance on financing assistance available through our bank. As can be seenfrom the trading update above, the Group continues to trade profitably andahead of the position last year. The consequences of the increased activityinclude higher stock levels, additional work in progress, and a larger debtorregister. With this new funding in place we are confident that we can overcomethe cash flow constraints that have been impacting the business. On behalf ofthe board I thank our investors for the confidence they have shown in us, andlook forward to justifying their support through performance." For further information on PHSC plc, please visit www.phsc.plc.ukor contact: PHSC plcStephen King 01622 717700 Northland Capital Partners LimitedGavin Burnell / Edward Hutton 020 7796 8800John Howes / Alice Lane About PHSC PHSC plc, through its trading subsidiaries Personnel Health & SafetyConsultants Ltd, RSA Environmental Health Ltd, Adamson's Laboratory ServicesLtd, QCS International Ltd, Inspection Services (UK) Ltd and Quality LeisureManagement Ltd provides a range of health, safety, hygiene, environmental andquality systems consultancy and training services to organisations across theUK. B to B Links Ltd offers innovative retail security solutions includingtagging, labelling and CCTV.