Disposal
02 February 2007 - 2:43AM
UK Regulatory
PHSC PLC
Disposal of Subsidiary
PHSC plc announces the disposal of its Health and Safety Click Limited (HSC) subsidiary on 31
January 2007. This course of action was noted in the interim report, where the Board stated that
it had determined that such a disposal would be in the best interests of the group. HSC was
acquired in the full knowledge that further investment would be required to enable the company to
reach its potential, and various measures were taken to facilitate this. Whilst the HSC concept
remained an attractive one, the Board took the view that PHSC plc should concentrate its efforts
on maximising shareholder value from companies in the sector that are already sufficiently well
established to be cash-generative. Under PHSC ownership, HSC was not forecast to
become significantly profitable over the next two years and thus does not fit this model. Working
with HSC since August 2005 has given valuable insights into the ways that an internet-based
provider can deliver a service, and the Board believe that a faster route and certainly a more
cost-effective way into this particular market can be achieved by developing web-based offerings
through other Group subsidiaries. HSC made a trading loss of � 26,000 in the current financial
year to date. Under the agreement, the new owner of HSC has redeemed loans totalling �14,275 that
were already in place before the company was originally acquired by PHSC plc. Furthermore, the
terms of the disposal provide that PHSC plc are entitled to 33% of any profits generated by HSC in
the next twelve months, and 25% of any profits in the twelve months thereafter.
For further information: -
PHSC plc-
Stephen King (Tel: 01622 717 700)
Stephen.king@phsc.co.uk
www.phsc.plc.co.uk
Ruegg & Co Limited -
Gavin Burnell (Tel: 020 7584 3663)
Hichens, Harrison & Co. plc -
Daniel Briggs (Tel: 020 782 7776)
PHSC plc
Phsc (LSE:PHSC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Phsc (LSE:PHSC)
Historical Stock Chart
From Sep 2023 to Sep 2024