PHSC PLC

Interim / Quarterly Report • Nov 25, 2025

National Storage Mechanism | Additional information

25 November 2025

PHSC PLC

(“PHSC”, the “Company” or the “Group”)

Unaudited Interim Results for the six months ended 30 September 2025

PHSC (AIM: PHSC), a leading provider of health, safety and quality systems consultancy and training services and security solutions to the public and private sectors, announces its unaudited interim results for the six month period ended 30 September 2025.

Financial Highlights

• Group revenue £1.569m (H1 FY25: £1.571m)
• Loss before tax of £0.141m (H1 FY25: loss of £0.015m)
• Loss per share of (1.04p) (H1 FY25: (0.12p))
• Cash reserves of £0.235m at 30 September 2025 (H1 FY25: £0.505m)
• Group net assets of £2.914m (H1 FY25: £3.263m)
• No interim dividend (H1 FY25: nil)

GROUP CHIEF EXECUTIVE OFFICER’S STATEMENT

Overview and Business Outlook

The first half of our financial year delivered stable revenues of £1.569m (H1 FY25: £1.571m) and a loss before tax of £0.141m (H1 FY25: £0.015m). This outturn reflects tighter margins and higher operating costs. The principal elements were increased salary and recruitment costs across the Group, a less favourable sales mix in the Security Division following the completion of last year’s larger project work, and lower training volumes within parts of the Safety Division.

Consultancy work has remained steady, and two of the three divisions were profitable before tax. Since joining the Group in mid October 2025, I have been impressed by the commitment and calibre of our teams and the strength of many longstanding client relationships.  The early work undertaken by management during the reporting period has strengthened areas directly linked to commercial performance, including fee earner utilisation oversight, improved conversion discipline and tighter working capital management. These measures are designed to improve our revenue mix, capture more value from existing demand and enhance the consistency of earnings over time.

The Security Division’s modest loss is being addressed through targeted commercial action. The introduction of dedicated business development resource is broadening the pipeline beyond its core client base and improving visibility of opportunities that serve to support recurring revenue and carry more attractive margin characteristics.

As we progress through the second half, management is focused on the levers that influence commercial performance, namely: fee earner utilisation, opportunity visibility, conversion discipline, and better coordination across marketing, sales and delivery. These are foundational steps in strengthening the Group’s operating effectiveness and positioning PHSC for improved margin quality over time.

While mindful of broader market conditions, the Board considers the steps taken in the first half to be constructive as we seek to strengthen day-to-day performance and enable the Group to fully capture the benefits of future commercial opportunities.

Operations and Commercial Progress

Management has continued to prioritise changes that enhance the Group’s commercial and operational effectiveness. Key achievements during the period included:

• improved fee-earner utilisation management to maximise revenue from existing capacity

• clearer commercial coordination across marketing, business development and client engagement

• tighter cost and working capital control to improve cash discipline

• stronger divisional leadership accountability and more consistent performance management

These actions are intended to increase the proportion of effort that converts into revenue, strengthen margin discipline and improve the quality and predictability of earnings. They also help align the Group’s divisional

activities so that opportunities can be developed, shared and followed-up more effectively.

The changes introduced so far are characteristic of the first phase of a broader commercial and operational improvement programme - improving visibility, modernising ways of working and reducing inefficiency.  They provide the foundations for a more aligned, commercially driven Group. Management will continue embedding these practices through the second half.

Divisional Overview

The Group’s divisions delivered a mixed performance in the first half, with two of the three showing profitability. Client advocacy remained robust and activity levels were generally stable, but margins were constrained by cost inflation and uneven revenue flows.  The results below reflect the consolidated view after allocation of management charges.

The Safety Division remained the largest contributor to Group performance, with invoiced sales of £918k resulting in a profit of £170k (H1 FY25: £845k and £144k respectively). Consultancy activity remained stable, and the division is focusing on consultant utilisation, commercial follow-through and strengthening training activity. For context, the Safety Division typically carries higher margins than the other divisions due to the nature of consultancy led work, which continues to provide resilience within the Group’s overall mix. 

The Systems Division recorded invoiced sales of £322k and a profit of £9k (H1 FY25: £345k and £19k respectively). While training activity was subdued, consultancy demand has remained steady. The business is concentrating on margin improvement and ISO transition opportunities to support recovery in the second half.

The Security Division reported invoiced sales of £329k and a loss of £27k (H1 FY25: £381k and profit of £25k respectively). The absence of last year’s one off project affected both revenue mix and margin. Targeted commercial actions are underway, including the appointment of dedicated business development resource to expand the client base and restore profitability.  Signs of an increasingly healthy sales pipeline are becoming evident since an appointment earlier this year.

Dividend

The Board has decided to take a prudent approach and to preserve the Group’s cash reserves in the current environment. Accordingly, no interim dividend will be declared or paid for the period. The decision whether or not to pay a final dividend will be made by reference to the Group’s full year performance and cash reserves at that time.

Cash Reserves

Cash at bank on 30 September 2025 stood at £0.235m compared to approximately £0.505m at the same time last year.

Outlook

The Group entered the second half with a focused commercial agenda centred on fee-earner utilisation, sales pipeline conversion, a coordinated cross Group marketing approach and disciplined cost and working capital management. Our various marketing initiatives and external launch of the “PHSC Academy” in Q4 2025 (under which all of our training courses will be offered) have been designed to simplify routes to market and strengthen the commercial positioning of the Group’s services. These measures will continue to be embedded across the Group during the current period.

Selective investment proposals aimed at supporting consultancy and training growth will be evaluated during Q4 2025, with an emphasis on commercial payback, cash flow impact and risk management.

Although the broader economic environment remains uncertain, the Board believes that the Group’s specialist services mix, increasing operational discipline and more coherent commercial approach provide a sound platform from which to rebuild momentum and deliver long-term value for shareholders.

Nikki Porter

CEO

CHAIR’S STATEMENT

The Group has continued to experience challenges in growing sales in the first half, with a mixed performance across its various divisions.  As noted at the time of our trading update in September 2025, there have been additional PLC costs in the period relating to finance and operations support and certain board changes. These factors have contributed to the trading loss incurred in the first half and serve to support our decision not to pay an interim dividend.

As previously announced, Nicola Coote stepped down from her role of Acting CEO in October 2025, when Nikki Porter joined as Chief Executive Officer.  The handover process has been smooth and ensured continuity of leadership, together with renewed commercial and marketing focus as the Group embarks on the second half of the year. 

The executive team is targeting a select number of potential business opportunities to provide some positive trading momentum for the remainder of the financial year, alongside the Board’s ongoing review of the Group’s future strategy and direction.  We anticipate having our new strategic plan in place in time for the start of the next financial year in April 2026.  We are excited about the new initiatives underway, such as the consolidation of our training offering under the “PHSC Academy” brand and look forward to the development and implementation of other new products and services alongside our traditional offerings.  The considered investment in, and use of, appropriate tech solutions should also allow our operations to become more efficient and cost effective over time. 

Lorraine Young

Chair

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended by virtue of the Market Abuse (Amendment) (EU Exit) Regulations 2019. On publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information please contact:

PHSC plc

Nikki Porter / Lorraine Young    Tel: 01622 717 700

www.phsc.plc.uk

Strand Hanson Limited (Nominated Adviser)  Tel: 020 7409 3494

James Bellman / Matthew Chandler

AlbR Capital Limited (Broker)   Tel: 020 7469 0930

Colin Rowbury

About PHSC

The PHSC group principally provides a range of health, safety and quality systems consultancy and training services to organisations across the UK. It also offers innovative security solutions including tagging, labelling and CCTV. For further information refer to our website at: www.phsc.plc.uk.

Group Statement of Comprehensive Income					Six months ended				Six months ended				Year ended
					30 Sept 25				30 Sept 24				31 Mar 25
	Note				Unaudited				Unaudited				Audited
					£’000				£’000				£’000
Continuing operations:
Revenue	2				1,569				1,571				3,220
Cost of sales					(766)				(758)				(1,545)
Gross profit					803				813				1,675
Administrative expenses					(948)				(838)				(1,709)
Goodwill impairment					-				-				(110)
Loss from operations					(145)				(25)				(144)
Finance income					4				10				17
Loss before taxation					(141)				(15)				(127)
Corporation tax credit					34				3				1
Loss for the period after tax attributable to owners of parent	2				(107)				(12)				(126)
Total comprehensive income attributable to owners of the parent				(107)				(12)				(126)
Basic and diluted loss per share from continuing operations attributable to the equity holders of the Group during the period	4				(1.04p)				(0.12p)				(1.21)p

Group Statement of Financial Position			30 Sept 25		30 Sept 24		31 Mar 25
			Unaudited		Unaudited		Audited
	Note		£’000		£’000		£’000
Non-Current Assets
Property, plant and equipment	3		511		542		507
Goodwill			2,005		2,115		2,005
Deferred tax asset			9		12		9
			2,525		2,669		2,521
Current Assets
Inventories			213		247		220
Trade and other receivables			673		617		584
Cash and cash equivalents			235		505		435
Current corporation tax receivable			36		-		2
			1,157		1,369		1,241
Total Assets	2		3,682		4,038		3,762
Current Liabilities
Trade and other payables			609		506		574
Right of use lease liability			37		45		40
Current corporation tax payable			-		76		-
			646		627		614
Non-Current Liabilities
Right of use lease liability			57		81		62
Deferred taxation liabilities			65		67		65
			122		148		127
Total Liabilities			768		775		741
Net Assets			2,914		3,263		3,021
Capital and reserves attributable to equity holders of the Group
Called up share capital			1,028		1,028		1,028
Share premium account			1,916		1,916		1,916
Capital redemption reserve			583		583		583
Merger relief reserve			134		134		134
Retained earnings			(747)		(398)		(640)
			2,914		3,263		3,021

Group Statement of Changes in Equity
	Share Capital	Share Premium	Merger Relief Reserve	Capital Redemption Reserve	Treasury Shares	Retained Earnings	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000
Balance at 1 April 2025	1,028	1,916	134	583	-	(640)	3,021
Loss for the period attributable to equity holders	-	-	-	-	-	(107)	(107)
Balance at 30 September 2025	1,028	1,916	134	583	-	(747)	2,914
Balance at 1 April 2024	1,103	1,916	134	508	(210)	(176)	3,275
Loss for the period attributable to equity holders	-	-	-	-	-	(12)	(12)
Cancellation of treasury shares	(75)	-	-	75	210	(210)	-
Balance at 30 September 2024	1,028	1,916	134	583	-	(398)	3,263

Group Statement of Cash Flows	Six months		Six months			Year
		ended		ended		ended
		30 Sept 25		30 Sept 24		31 Mar 25
		Unaudited		Unaudited		Audited
		£’000		£’000		£’000
Cash flows (used by)/generated from operating activities
Cash (used by)/generated from operations		(147)		40		199
Tax paid		-		-		(79)
Net cash (used by)/generated from operating activities		(147)		40		120
Cash flows (used in)/from investing activities
Purchase of property, plant and equipment		(29)		(9)		(15)
Disposal of fixed assets		-		-		-
Interest received		4		10		17
Net cash (used in)/from investing activities		(25)		1		2
Cash flows used in financing activities
Payments on right of use assets		(28)		(24)		(47)
Dividends paid to Group shareholders		-		-		(128)
Net cash used in financing activities		(28)		(24)		(175)
Net (decrease)/increase in cash and cash equivalents		(200)		17		(53)
Cash and cash equivalents at beginning of period		435		488		488
Cash and cash equivalents at end of period		235		505		435
*Notes to the cash flow statement*
Cash (used by)/generated from operations
Operating loss - continuing operations		(145)		(25)		(145)
Depreciation charge		45		38		78
Goodwill impairment		-		-		110
Loss on sale of fixed assets		-		1		1
Decrease/(increase) in inventories		7		(1)		27
(Increase)/decrease in trade and other receivables		(89)		152		185
Increase/(decrease) in trade and other payables		35		(125)		(57)
Cash (used by)/generated from operations		(147)		40		199

Notes to the Unaudited Condensed Consolidated Interim Financial Statements

1. Basis of preparation

These condensed consolidated interim financial statements are presented on the basis of International Financial Reporting Standards (IFRS) as adopted by the European Union and interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) and have been prepared in accordance with the AIM Rules for Companies and the Companies Act 2006, as applicable to companies reporting under IFRS.

The interim financial information contained in this announcement, which has not been audited, does not constitute statutory accounts as defined by Section 434 of the Companies Act 2006. The Group’s statutory financial statements for the year ended 31 March 2025, prepared under IFRS, have been filed with the Registrar of Companies. The auditor’s report for the 2025 financial statements was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.

The same accounting policies and methods of computation have been followed within these interim financial statements as adopted in the most recent annual financial statements.

1. Segmental Reporting

	Six months ended				Six months ended			Year ended
	30 Sept 25				30 Sept 24			31 Mar 25
	Unaudited				Unaudited			Audited
*Revenue*	£’000				£’000			£’000
Health & Safety division	918				845			1,748
Systems division	322				345			735
Security division	329				381			737
Total revenue	1,569				1,571			3,220
*Loss after taxation, before management charges*
Health & Safety division	170			144			318
Systems division	9			19			64
Less impairment	-			-			(110)
Security division	(27)			25			9
Holding company	(259)			(200)			(407)
Total Group loss after taxation	(107)			(12)			(126)

	30 Sept 25		30 Sept 24		31 Mar 25
	Unaudited		Unaudited		Audited
*Total assets*	£’000		£’000		£’000
Safety division	989		958		953
Systems division	234		215		218
Security division	409		475		428
Holding company	2,677		2,922		2,684
	4,309		4,570		4,283
Adjustment of goodwill	(629)		(532)		(523)
Adjustment of deferred tax	2		-		2
Total assets	3,682		4,038		3,762

1. Property, plant and equipment

		30 Sept 25		30 Sept 24		31 Mar 25
		Unaudited		Unaudited		Audited
		£’000		£’000		£’000
Cost or valuation
Brought forward		1,112		1,037		1,037
Additions		58		79		85
Disposals		(12)		(10)		(10)
Carried forward		1,158		1,106		1,112
Depreciation
Brought forward		605		535		535
Charge		45		38		79
Disposals		(3)		(9)		(9)
Carried forward		647		564		605
Net book value		511		542		507

1. Loss per share

The calculation of the basic loss per share is based on the following data.

		Six months ended		Six months ended	Year ended
		30 Sept 25		30 Sept 24	31 Mar 25
		Unaudited		Unaudited	Audited
		£’000		£’000	£’000
Loss - continuing activities		(107)		(12)	(126)
Number of shares		30 Sept 25		30 Sept 24	31 Mar 25
Weighted average number of shares for the purpose of basic loss per share		10,280,853		10,280,853	10,429,466

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