PHSC PLC said on Wednesday first-half performance had been ‘disappointing’, citing higher staffing costs as it expects revenue growth in the second-half.

The Aylesford, Kent-based provider of health, safety, hygiene and environmental consultancy and security solutions reported a pretax loss of £15,000 for the six months ended September 30, compared to a profit of £158,000 in the same period last year.

Shares in PHSC were down 12% at 25.00 pence in London on Wednesday afternoon.

Revenue for the period fell 5.8% to £1.6 million from £1.7 million, while administrative costs increased 13% to £838,000 from £743,000. The cost of sales remained steady at £758,000.

PHSC did not declare an interim dividend, compared to a payout of 0.75 pence per share in the first-half of the prior year.

Despite the ‘fairly downbeat’ first-half performance, PHSC noted improvements in operations, including a larger headcount, which it believes will contribute to a stronger performance in the latter half of the year. The company said it remains focused on enhancing profitability and exploring growth opportunities within its core consultancy and security markets.

Chair Lorraine Young said: ‘The performance in the first half of this year was disappointing. The main factor was the hiring of additional staff at several of the subsidiary businesses to facilitate future growth. At this stage the group has the higher cost burden but has not yet seen the benefit of increased revenues, which we hope will begin to come through in the second half.’

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