PHSC sees stronger H2 performance despite lower interims

Health and safety consultancy PHSC said it expected a strong second half performance despite a fall in interim profits.

Earnings before interest, tax, depreciation and amortisation, dropped to £229k (from £444k), bringing basic earnings per share down 45% to 1.23p.

PHSC said it traditionally performs better in the second half of the financial year, although this trend was interrupted in 2014-15 by the exceptional performance of B-to-B Links in the first half.

"Based on the current order book we expect to see further progress from existing subsidiaries in Q3 and Q4, giving us a stronger second half to the current year," the company said.

Group turnover at the AIM-listed health and safety consultancy was down 18% on the same period last year, to £3.354m at 30 September.

PHSC's cash position improved, however, from £138k last year to £611k.

"As indicated in our previous trading update, the conclusion of two large contracts resulted in a hiatus in our order book which we have been seeking to address", said group chief executive Stephen King.

"Although somewhat less than at this stage in 2014-15, the recent upturn in performance has given the board a degree of confidence that subsidiaries are successfully adjusting to their new circumstances."

The company was looking for serious improvements heading into the second half, pointing to near-threefold increases in EBITDA in Q2 against Q1, as new contracts and cost savings took effect.