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 and environmental consultancy services and security solutions to the public and private sectors, is pleased to announce that the Company has conditionally raised £520,000 before expenses through a placing of 2,080,000 new Ordinary Shares of 10p each (the "Placing Shares") at a price of 25p per Placing Share (the "Placing"). The Placing was oversubscribed, primarily taken up by institutional investors, and included Director participation. The Placing Shares represent approximately 16 per cent. of the enlarged issued share capital. 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 £3,088,000 and 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 be used 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, Executive Director 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 Ordinary Shares 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 a related party transaction under the AIM Rules for Companies. Graham Webb and Michael Miller, having consulted with Northland Capital Partners Limited, the Company's Nominated Adviser, consider that the terms of the participation of Stephen King and Nicola Coote in the Placing are fair and reasonable insofar as the shareholders of the Company are concerned. The Placing The issue of the Placing Shares is conditional on Admission. Application has been 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 Shares will be issued credited as fully paid and will rank pari passu in all respects with the existing Ordinary Shares, including the right to receive all dividends and 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 Capital Partners Limited warrants to subscribe for 100,000 new Ordinary Shares at 45p per share exercisable at any time for a period of two years following Admission. Total voting rights Following Admission, the Company's enlarged issued share capital will comprise 12,686,348 Ordinary Shares. The Company does not hold any shares in treasury. Therefore, the total number of Ordinary Shares with voting rights is 12,686,348. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules. CEO Stephen King, commenting on the Placing, said: "After factoring in the stage payments related to our two most recent acquisitions, the board felt that it was appropriate to seek additional working capital. The purpose of the funding is to enable the continued growth of the Group, and to reduce our reliance on financing assistance available through our bank. As can be seen from the trading update above, the Group continues to trade profitably and ahead of the position last year. The consequences of the increased activity include higher stock levels, additional work in progress, and a larger debtor register. With this new funding in place we are confident that we can overcome the cash flow constraints that have been impacting the business. On behalf of the board I thank our investors for the confidence they have shown in us, and look forward to justifying their support through performance." For further information on PHSC plc, please visit www.phsc.plc.ukor contact: PHSC plc Stephen King 01622 717700 Northland Capital Partners Limited Gavin Burnell / Edward Hutton 020 7796 8800 John Howes / Alice Lane About PHSC PHSC plc, through its trading subsidiaries Personnel Health & Safety Consultants Ltd, RSA Environmental Health Ltd, Adamson's Laboratory Services Ltd, QCS International Ltd, Inspection Services (UK) Ltd and Quality Leisure Management Ltd provides a range of health, safety, hygiene, environmental and quality systems consultancy and training services to organisations across the UK. B to B Links Ltd offers innovative retail security solutions including tagging, labelling and CCTV.

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PHSC (PHSC)
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