PTSG crowned Fast Growth Business of the Year at Yorkshire Business Masters Awards 2017

Premier Technical Services Group PLC (PTSG), the UK’s leading provider of niche specialist services, has been named as the Fast Growth Business of the Year at the 2017 Yorkshire Business Masters Awards.

The Yorkshire Business Masters Awards, held by thebusinessdesk.com, aims to find the best Yorkshire businesses, recognising them for their commitment to the community or their ambitious growth.

The awards ceremony was held at The Queens Hotel in Leeds on Thursday (31st March 2017), at a black-tie ceremony, and was hosted by thebusinessdesk.com’s Yorkshire editor Alex Turner and BBC political editor Nina Warhurst.

PTSG’s CEO Paul Teasdale said: “This award is testament to our people’s hard work and dedication, which has seen PTSG grow from a concept to become the UK’s foremost provider of specialist services in 10 short years.

“I am immensely proud of this achievement; we are in the company of some of the region’s most prestigious businesses and to be named as the Fast Growth Business of the Year is a fantastic accolade.

“As we look to the future we will continue to place customer service at the forefront of how we operate and remain committed to delivering high-quality services through continuous improvements and innovations. This has been one of the major catalysts of our growth and I believe is what sets us apart from our competitors.”

PTSG to provide gutter cleaning services for St James’s Place Plc

Premier Technical Services Group PTSG (PLC) has been awarded a three-year nationwide contract to provide gutter cleaning services for wealth management business St. James’s Place Plc.

St James’s Place Plc was established in 1991 by Sir Mark Weinberg, Mike Wilson CBE and Lord Rothschild under the name of the J. Rothschild Assurance Group. The FTSE 100 company has offices across the UK and Asia, and is headquartered in Cirencester.

PTSG’s high-level cleaning division will visit a total of 14 St. James’s Place stand-alone offices throughout the UK to provide cleaning services and annual maintenance of each office’s guttering system.

80% of the sites will require the use of an access platform for the organisation’s high-level cleaning team to gain safe access to the buildings’ upper levels. PTSG’s high level cleaning division uses a range of access methods to carry out work like this, including MEWPs and rope access. The Group recently received its sixth International Safety Award from the British Safety Council, recognising the PTSG’s commitment to safe working practices, especially when working at height.

PTSG installs dry risers at new retail and leisure complex

Premier Technical Services Group PLC (PTSG) has installed a number of dry riser systems at a large retail and leisure development in Southampton.

Rushden Lakes is a mixed-use retail and leisure complex which includes 500,000 sq. ft. of retail space, a 14-screen cinema and nine restaurants as well as a number of other recreational facilities, such as a climbing arena, indoor golf, soft play and trampolining areas. The development will also make use of its lakeside location, offering a number of water-based activities for local community groups.

PTSG’s team has installed 10 new dry riser systems to the complex’s tallest buildings, which will allow firefighters to tackle fires more effectively if such an event ever occurs. Dry riser systems are required in all buildings over 18m tall and are made up of vertical pipes and a number of outlets which allow water to be evenly distributed across all storeys of a building.

PTSG is the leading specialist installer of wet and dry riser systems in the UK and also provides a complementary maintenance service. The Group’s fire services engineers have worked on a wide range of projects throughout the country, including prestigious contracts at the Olympic Park and Anfield Stadium.

PTSG protects luxury bargain hunters at Bicester Village

Premier Technical Services Group PLC (PTSG) has been awarded a contract to install lightning protection systems at Phase 4 of the development of the Bicester Village Designer Outlet in Oxfordshire.

Bicester Village is a luxury shopping outlet on the outskirts of Bicester and is famous for being the second most visited UK attraction for Chinese tourists after Buckingham Palace. The site is undergoing significant expansion and refurbishment and this phase of the works involves the demolition and reconfiguration of a number of retail units, car parking and other facilities.

PTSG’s engineers will install lightning protection systems to the new units, which will ensure the safety of Bicester Village’s employees and the millions of people who travel there from all over the globe every year.

PTSG’s electrical services division is the UK market leader in specialist services of this kind, and is a member of the Association of Technical Lightning & Access Specialists (ATLAS). The division also has a number of clients in international markets and has recently completed work in the Middle East and the Caribbean.

Final Results 2016

28 March 2017

Premier Technical Services Group PLC
(“PTSG” or the “Group”)

Strong organic growth with record turnover and profits

Final Results

Premier Technical Services Group PLC (“PTSG” or the “Group”), the niche specialist services provider, announces its final results for the year ended 31 December 2016.

Key highlights

  • Group revenue up 52% to £39.2m (2015: £25.8m)
  • Gross profit up 45% to £20.3m (2015: £14.0m)
  • Adjusted operating profit* increased 49% to £7.9m (2015: £5.3m)
  • Adjusted profit before tax** up 49% to £7.5m (2015: £5.0m)
  • Adjusted eps* up 57% to 7.63p (2015: 4.87p)
  • Final dividend of 0.70p (2015: 0.54p)
  • Underlying organic growth rate 20%
  • Two acquisitions successfully integrated, extending our service offering to include dry risers in the fire protection and suppression market
  • The six 2015 acquisitions have been successfully integrated into the Group

John Foley, Chairman of Premier Technical Services Group PLC commented

“2016 was a successful year in terms of strong, profitable organic growth delivering record levels of turnover, gross profit and adjusted operating profits. 2017 has started well with continuing sales growth and new record levels of orders in hand and we remain both confident of our prospects and enthusiastic about the future.”

Enquiries:

PTSG +44 (0)1977 668 771
Paul Teasdale, Chief Executive Officer

Numis Securities +44 (0)207 260 1000
Stuart Skinner / Kevin Cruickshank / Michael Burke

Hudson Sandler +44 (0)207 796 4133
Charlie Jack / Jocelyn Spottiswoode

*before adjusting items of £4.7m (2015: £4.0m) resulting in a statutory operating profit of £3.1m (2015: £1.3m) and eps of 2.61p (2015:0.57p)

**before adjusting items of £4.8m (2015: £4.2m) resulting in a statutory profit before tax of £2.6m (2015: £0.8m)

About PTSG – www.ptsg.co.uk

Premier Technical Services Group PLC is the UK’s leading provider of façade access and fall arrest equipment services, lightning protection and electrical testing, high-level cleaning and training solutions.

Operating through four divisions, Access & Safety, Electrical Services, High Level Cleaning and Training Solutions, the Group provides highly-engineered industrial products and quality services and has a substantial presence in a number of niche markets.

PTSG provides a central information service for its businesses and champions the dissemination of key information and best practice. PTSG unites its constituent businesses under one clear identity, which supports smarter working and delivers top class service to its customers.

Headquartered in Castleford, West Yorkshire, the Group employs more than 450 people across 16 UK sites, who service more than 150,000 buildings across the whole of the UK for over 15,000 customers in a wide range of industries. The Company is listed on the LSE AIM (PTSG.L)

Chairman’s statement

2016 – A summary
I am pleased to report that PTSG achieved record levels of turnover, gross profit, adjusted EBITDA, underlying profit before taxation and adjusted earnings per share in 2016. Underlying organic revenue growth (adjusting for the impact of acquisitions) was a healthy 20% and this was the tenth consecutive year of double digit organic growth. We also continued with our acquisition strategy in July 2016, when the Group purchased the entire issued share capital of Dry Risers UK Limited and Dry Risers Maintenance Ltd in order to expand our service offering into the niche fire protection and suppression market. After the year end, we purchased the entire issued share capital of Nimbus Lightning Protection Ltd in January 2017 to further strengthen our service offering in an area of key importance for the Group.

Financial overview of results
Turnover increased by 52% to £39.2 million (2015: £25.8 million). Gross profit increased by 45% to £20.3 million (2015: £14.0 million). Adjusted EBITDA increased by 45% to £9.0 million (2015: £6.2 million) and underlying profit before taxation (before adjusting items of £4.8 million) increased by 49% to £7.5 million (£5.0 million). Adjusting items were one off or non trading items including £1.9 million of share option costs, £0.5m of intangible amortisation costs £1.9 million for contingent payments in relation to acquisitions and £0.5m restructuring costs. Adjusted earnings per share increased by 57% to 7.63 pence (2015: 4.87 pence).

The Board has recommended a final dividend of 0.7 pence per share which together with the interim dividend paid of 0.7 pence is a 40% increase on the dividends paid in respect of 2015. This will be paid to shareholders on the register on 30 June 2017 and the expected payment date is 21 July 2017.

Net debt at 31 December 2016 increased to £13.6 million (2015: £7.6 million) following payments of £2.7 million in relation to acquisition of businesses including payment of deferred consideration and necessary increases in working capital resulting from the substantial working capital increase associated with the Group’s increased size and scale. The major covenant contained in the Group’s RCF facility relating to quantum of borrowings is that total net debt should not exceed 2.25x adjusted EBITDA and the Group trades very comfortably within all its covenants. As previously stated, the Board is comfortable with core borrowings of up to 1.75x adjusted EBITDA at this stage in the Group’s development.

Operational highlights
The Board was pleased with both the 20% underlying organic revenue growth achieved in 2016 and the performance of Dry Riser acquisitions since July 2016. The range of niche specialist services that we are now able to offer customers is an important reason behind our success in both signing new and extending the scope of existing framework agreements with a number of important customers.

Our gross margin performance was in line with the Board’s expectations. As stated in my FY 2015 report the major factor which impacts the Group’s gross margin performance is the relative mix of installation sales (which carry higher material costs) to testing and repair sales. In 2016, installation sales amounted to £17.4 million (2015: £9.0 million). The gross margin on testing and repair sales in 2016 was 67% (2015: 66%). This continued level of good operational performance is testament to the strength of the Group’s operating model which operates successfully across a range of niche specialist services.

The increase in installation sales feeds through into increased testing and repair sales in future years but 2016 saw a higher level of installation activity in the second half of the year than we had anticipated, resulting in an increased working capital requirement at the year end which is expected to reduce in 2017.

The Group provides services to over 150,000 buildings and therefore produces a very high number of relatively low value invoices in relation to its testing and repair activities. The supporting infrastructure in the Health and Safety, contract renewal, IT and accounts areas of the business needs to be robust in order to support this level of activity and senior management is as diligent in its focus on these areas as it is on direct operational performance issues. The proprietary Clarity System that has been developed in house to efficiently manage the high volume of low value transactions that is a feature of the Group is now fully operational in our Access and Safety division and will be carefully implemented across the Group during 2017 and 2018.

The Group continues to secure necessary industry accreditations and it was pleasing to win two PFM partnership awards in November 2016. These awards show that our efficient and innovative operating model is appreciated and recognised by others within the facilities management sector and our track record shows that this model remains scalable across a broad range of niche specialist services.

Strategy
PTSG celebrated its tenth anniversary in February 2017. It was founded with a very clear objective to build a Group which could become the UK’s leading provider of niche specialist services to customers in the facilities management, property and construction sectors. We have a clear and distinct operating model which is both scalable and efficient across a broad range of services on a national scale. Excellent customer service is at the heart of everything we do. We have undertaken and successfully integrated 21 acquisitions since formation and developed market leading positions in our chosen service areas. Our acquisition policy is now focused on a new objective which is to seek sector dominance in our chosen areas of operation, especially in the testing and repair sectors. Our organic growth strategy now recognises that we have a major opportunity to sell an enhanced range of specialist services to our customer base. We expect that this new focus will benefit our shareholders in years to come.

People
On behalf of the Board I would like to thank all of our employees for their hard work and commitment to ensure that PTSG remains the service provider of choice for our customers.

Outlook
We undertook an IPO in February 2015 in order to assist us with our ambitious growth plans; those plans are now more detailed but no less ambitious after two years as a public company and we continue to explore an active pipeline of acquisition opportunities. 2016 was a successful year in terms of the delivery of strong, profitable organic growth and the Board is pleased to note that 2017 has started very well with continuing sales growth and new record levels of orders in hand held across the Group. We remain both confident of our prospects and enthusiastic about the future.

John Foley
Chairman

Chief Executive’s review

Overview
2016 saw PTSG perform exceptionally well across our divisions, once again delivering well above and beyond expectations. We achieved a number of the strategic priorities we identified at the start of the year, resulting in an even more comprehensive service offering, supported by the technology to deliver a measurably improved service for our customers. This has seen our underlying profits before tax move ahead apace, whilst delivering a strong return for our investors. We have also identified areas within our business for improvement, and we look forward to setting out new objectives to enable us to continue growing at a sustainable rate.

2016 saw the beginning of our tenth anniversary year and we celebrate a decade in business in February 2017. From a standing start in 2007, we have achieved sustained growth in every year of operation. We have combined an ambitious strategy of organic growth with business acquisition, forging a business model which has yielded impressive and continued growth and profitability.

Once again in 2016, the Group achieved double-digit growth, with a revenue increase of 52% to £39.2m, delivering a pre-tax operating profit (before adjusting items) of £7.9m. This builds on the previous year, which saw our turnover increase to £25.8m. These figures underline the effectiveness and sustainability of our business model, with significant further organic and acquisitive growth expected in the year ahead.

PTSG is the only UK listed entity to operate within many of its niche markets. We know from considerable experience that the industry’s larger contractors prefer to trade with a publicly listed company , and this has helped to strengthen our position in the marketplace and will also be a key growth factor going forward. Our aim is threefold: to continue to deliver outstanding service to our growing customer base; to make PTSG the best place to work so that we are always the best place to do business with, and to deliver continued shareholder value. This is what my leadership team and I obsess on day in, day out.

Evolving and improving
The facilities management industry is highly competitive, and it is through striving to deliver the best possible service for our customers that we have grown to occupy a leading position in the UK market place. In order to continue delivering sustainable value for both our customers and shareholders, we regularly review the performance of our four divisions to identify areas for improvement.

Our contract renewal rate remains in excess of 80 per cent, and while pleasing and significantly better than other organisations in our sector, this remains an area for us to improve upon. We are working hard to try and understand, outside project completions and close outs, why some of our customers decide not to renew their working relationship with us upon completion of ongoing contracts. It is a relatively small number, but nevertheless it is important to us.

2016 saw our continued investment in, and development and implementation of, Clarity, our proprietary software, and the first administrative system of its kind to be completely non-manual. It is already enabling us to serve our customers far better, with work tracked in real time and documents created or retrieved instantly and remotely. We will continue to look for other ways in which technology can be used to our customers’ – and our own teams’ – advantage.

Value for money is also crucially important to customer satisfaction. Our business model ensures PTSG can provide customers with a competitive pricing structure, as we aim to be the niche specialist services provider offering the best value in the UK. This in turn results in repeat purchase and higher profits due to the quantum of work we are commissioned to undertake and the economies of scale in our unique delivery system.

Of course, it is the nature of any business that some contracts are short-term. However, something that differentiates PTSG from our competitors is our bundled service provision. We entered the marketplace having identified the need for one organisation to provide multiple niche specialist services under one roof. Since then, we have fully committed to our aim of offering the full range of high-quality engineered products and services required by customers and contractors.

We have gained a strong reputation throughout the industry for being able to meet all our customers’ needs. As working at height specialists, we manage the full range of cradle and fall arrest services – from design to installation and maintenance; our electrical services encompass everything from lightning protection systems to dry risers; our high-level cleaning service extends to all areas of a building, using techniques such as pressure cleaning and even specialist painting and window replacement, as required.

Finally – and importantly – we also provide training for organisations. By offering our customers everything ‘under one roof’, we save them the time, effort and cost of procuring these services separately.

Acquisitions
Although organic growth continues to be the cornerstone of our success, our business acquisition strategy has been fundamental in securing our position as the complete niche specialist service provider.

Our first acquisition was of an access and safety company, National Cradle Maintenance Limited, in 2007, which was funded by £0.9m of equity from the founders. Since then, and up to the end of 2016, we have made 20 carefully targeted and self-funded acquisitions, which have resulted in our comprehensive service offering across our market sectors. We will continue to identify further opportunities to fill potential gaps in our service provision.

The businesses we have acquired have enabled us to increase our leadership capacity in several areas of the business as well as strengthening our management and skilled workforce, our production capacity and complementary or proprietary products or services. They have also been a way to expand the company geographically as well as managing business risk through market and customer diversification.

Whilst we have expanded through acquisition, subsequent organic growth has accounted for more than half of the increase in total revenues since 2007. Bundled service provision represents the other key factor in our growth going forward.

The acquisition of the Dry Risers business in July 2016 provided a new service offering for our clients and is showing good growth following its integration into the Group.

Industry sponsorship
Late in 2016, we were pleased to announce our support of the Stoddart Review, a new report into the benefits the facilities management (FM) industry holds for UK businesses. The report revealed that smarter use of Britain’s office space could improve productivity by between 1 per cent and 3.5 per cent, and deliver a boost of up to £70bn to the economy. Such findings help to raise awareness amongst senior executives across the UK about the role of FM in workplace productivity – and we are delighted to be part of that.

Support elsewhere in the industry, such as our sponsorship of the ATLAS, PFM and BIFM awards, make a valuable contribution to the sustainability of the industry; and PTSG becomes an integral part of the facilities management supply chain network in the process.

Divisional results
Each of our divisions has contributed to the exceptional performance of PTSG in 2016, thanks to our teams of highly trained experts.

Access and Safety
Safety Testing and Installation, Cradle Maintenance and Installation. As the UK’s leading supplier of fall arrest systems and safety testing services, we achieved a turnover of £18.9m in 2016 (2015: £12.0m) – a 48% contribution to the turnover of the Group. Adjusted operating profits increased to £3.1m from £2.0m in 2016 with growth across all segments.

Electrical Services
Lightning Protection, Fixed Wire and PAT Testing, Dry Risers, Fire Alarms and Extinguishers and Steeplejack Services. We achieved a turnover of £17.6m in 2016 (2015: £10.4m) – a 45% contribution to the turnover of the Group. Adjusted operating profits increased from £2.5m in 2015 to £4.0m. We saw good growth across all services and the acquisitions made in 2015 showed good progress.

High Level Cleaning
High Level Window Cleaning, Gutter Cleaning, Building Cleaning and Pressure Cleaning. Our team members are experts at working at height and performing a high-quality service even in the most inaccessible locations. In 2016 we achieved a turnover of £2.7m (2015: £3.4m) – a 7% contribution to the turnover of the Group. The decline was a result of one off technical work undertaken in 2015 but not repeated in 2016. Adjusted operating profits rose from £0.7m in 2015 to £0.8m in 2016.

Training Solutions
Training, Consultancy and Insurance Inspections. As well as training our own people – the best in the business – we work closely with our clients to ensure the safety of their staff through our bespoke training programmes.

Looking ahead
PTSG is a more capable and better equipped niche services provider than at any time in the Company’s ten year history. In the coming year, we will continue to focus on delivering a high-quality service to our customers, while looking for further ways to augment our offering.

On 1 September 2016, PTSG appointed Numis Securities Limited (Numis) as our nominated adviser and broker. Numis is one of the UK’s most respected institutional stockbrokers and corporate advisors, recognised as being one of the leading providers of capital for UK listed companies.

Finally, I would like to thank all our people for their hard work and commitment. I am continually impressed by the quality of service our teams deliver, always with safety in mind. This gives me great pride as we aim to set the standard other service providers strive for.

Paul Teasdale
Chief Executive

Consolidated statement of comprehensive income
for the year ended 31 December 2016

Year ended 31 December 2016

Year ended 31 December 2015

Before

Adjusting

Before

Adjusting

adjusting

items

adjusting

items

items

Total

items

Total

£

£

£

£

£

£

Revenue

39,194,766

39,194,766

25,770,503

25,770,503

Cost of sales

(18,863,527)

(18,863,527)

(11,785,079)

(11,785,079)

Gross profit

20,331,239

20,331,239

13,985,424

13,985,424

Net operating costs

(12,474,374)

(4,739,988)

(17,214,362)

(8,709,361)

(4,016,196)

(12,725,557)

Total operating profit

7,856,865

(4,739,988)

3,116,877

5,276,063

(4,016,196)

1,259,867

Finance costs

(405,076)

(97,402)

(502,478)

(273,437)

(155,446)

(428,883)

Profit before taxation

7,451,789

(4,837,390)

2,614,399

5,002,626

(4,171,642)

830,984

Taxation

(730,370)

415,544

(314,826)

(814,927)

473,046

(341,881)

Profit attributable to owners of the parent

6,721,419

(4,421,846)

2,299,573

4,187,699

(3,698,596)

489,103

Total comprehensive income/(expense) for the year attributable to owners of the parent

6,721,419

(4,421,846)

2,299,573

4,187,699

(3,698,596)

489,103

Earnings per share (pence):

Basic and diluted earnings per share

2.61

0.57

Consolidated statement of changes in equity
for the year ended 31 December 2016

Attributable to owners of the parent

Capital

Share

Non-

Share

redemption

Premium

Retained

controlling

Total

capital

reserve

Account

earnings

Total

interest

equity

£

£

£

£

£

£

£

Balance at 31 December 2014

771,437

128,573

221,087

1,121,097

179

1,121,276

Profit for the year

489,103

489,103

489,103

Total comprehensive income

489,103

489,103

489,103

Transactions with owners

Issue of share capital

105,010

4,942,818

5,047,828

5,047,828

Share based payments charge

2,333,915

2,333,915

2,333,915

Tax credit relating to share based payments

462,592

462,592

462,592

Ordinary dividends paid

(533,825)

(533,825)

(533,825)

Reduction of capital

(4,942,818)

4,942,818

Transactions with owners

105,010

7,205,500

7,310,510

7,310,510

Balance at 31 December 2015

876,447

128,573

7,915,690

8,920,710

179

8,920,889

Profit for the year

2,299,573

2,299,573

2,299,573

Total comprehensive income

2,299,573

2,299,573

2,299,573

Transactions with owners

Issue of share capital

7,578

548,418

555,996

555,996

Share based payments charge

1,243,841

1,243,841

1,243,841

Share based deferred consideration charge

400,000

400,000

400,000

Tax charge relating to share based payments

(283,935)

(283,935)

(283,935)

Ordinary dividends paid

(1,092,472)

(1,092,472)

(1,092,472)

Transactions with owners

7,578

548,418

267,434

823,430

823,430

Balance at 31 December 2016

884,025

128,573

548,418

10,482,697

12,043,713

179

12,043,892

Consolidated balance sheet
as at 31 December 2016

Restated

2016

2015

£

£

Assets

Non-current assets

Intangible assets

12,365,481

10,735,826

Property, plant and equipment

3,195,880

2,373,544

Deferred tax asset

417,336

784,061

Total non-current assets

15,978,697

13,893,431

Current assets

Inventories

503,307

381,760

Trade and other receivables

20,303,115

13,108,313

Cash at bank and in hand

6,543,749

4,842,899

Total current assets

27,350,171

18,332,972

Liabilities

Current liabilities

Trade and other payables

7,231,346

6,429,608

Bank overdraft

8,560,270

5,160,365

Finance leases

767,303

641,001

Borrowings

25,033

25,033

Deferred consideration

1,053,070

1,125,897

Current tax liabilities

296,003

749,642

Total current liabilities

17,933,025

14,131,546

Net current assets/(liabilities)

9,417,146

4,201,426

Non-current liabilities

Borrowings

10,010,155

5,993,808

Loan notes

2,596,206

2,527,000

Finance leases

745,590

653,160

Total non-current liabilities

13,351,951

9,173,968

Net assets

12,043,892

8,920,889

Equity attributable to the owners of the parent

Share capital

884,025

876,447

Capital redemption reserve

128,573

128,573

Share premium account

548,418

Retained earnings

10,482,697

7,915,690

12,043,713

8,920,710

Non-controlling interests

179

179

Total equity

12,043,892

8,920,889

Consolidated cash flow statement
for the year ended 31 December 2016

2016

2015

£

£

Cash flows from operating activities

Profit after taxation

2,299,573

489,103

Adjustments for:

Income tax charge

314,826

341,881

Depreciation

1,164,362

898,889

Amortisation of intangible assets

499,233

108,600

Profit on disposal of property, plant and equipment

(316,134)

(384,778)

Finance costs

502,478

273,437

Share based payments

1,243,841

2,333,915

5,708,179

4,061,047

Changes in working capital:

Increase in inventories

(86,399)

(40,995)

Increase in trade and other receivables

(6,092,755)

(3,673,880)

Increase/(decrease) in trade and other payables

1,038,646

(876,303)

Cash generated/(used in) from operations

567,671

(530,131)

Interest paid

(433,272)

(273,437)

Tax paid

(796,812)

(489,732)

Net cash outflow from operating activities

(662,413)

(1,293,300)

Cash flows from investing activities

Acquisition of businesses

(1,757,702)

(2,274,530)

Purchase of property, plant and equipment

(766,304)

(521,691)

Payment of deferred consideration

(905,159)

(1,057,940)

Net proceeds from sale of property, plant and equipment

354,849

404,817

Net cash outflow from investing activities

(3,074,316)

(3,449,344)

Cash flows from financing activities

Proceeds from borrowings

4,016,347

5,945,727

Repayment of bank borrowings

(3,750,000)

Capital element of finance lease payments

(1,042,197)

(648,707)

Issue of shares

155,996

4,672,828

Dividends paid

(1,092,472)

(533,825)

Net cash inflow from financing activities

2,037,674

5,686,023

Net (decrease) /increase in cash and cash equivalents

(1,699,055)

943,379

Cash and cash equivalents at 1 January

(317,466)

(1,260,845)

Cash and cash equivalents at 31 December*

(2,016,521)

(317,466)

* cash and cash equivalents comprises cash at bank in hand of £6,543,749 (2015: £4,842,899) less bank overdraft of £8,560,270 (2015: £5,160,365).

Notes to the Final Results
Basis of preparation

The preliminary financial information does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006, for the financial years ended 31 December 2016 and 31 December 2015, but has been derived from those accounts.

These financial statements have been prepared in accordance with the requirements of the AIM Rules, in accordance with International Financial Reporting Standards as adopted by the European Union (“IFRS”), the International Financial Reporting Interpretations Committee’s (“IFRSIC”) interpretations and with those parts of the Companies Act 2006 as applicable to companies reporting under IFRS, however, this announcement in itself does not contain sufficient information to comply with IFRS. The accounting policies used in preparation of this preliminary announcement have remained unchanged from those set out statutory accounts for the year ended 31 December 2015. They are also consistent with those in the full financial statements which have yet to be published.

Statutory accounts for 2015 have been delivered to the Registrar of Companies and those for the financial year ended 31 December 2016 will be delivered following the Company’s annual general meeting. The auditors have reported on those accounts and their opinion was unqualified and did not contain statements under section 498(2) or (3) of the Companies Act 2006.

Following a decision of the IFRS interpretations Committee in April 21016 in relation to IAS 32, the Group can no longer report cash balances on a net basis and so the Balance Sheet as at 31 December 2015 has been restated to show the cash and overdraft separately.

Segmental information

Management has determined the operating segments based on the operating reports reviewed by the Board of Directors that are used to assess both performance and strategic decisions. Management has identified that the Board of Directors is the chief operating decision maker in accordance with the requirements of IFRS 8 “Operating segments”.

The Board of Directors considers the business to be split into three main types of business generating revenue; Access and Safety, Electrical Services and High Level Cleaning. There was no trade in the Training Solutions division.

All revenue originates in the UK.

2016

Access

Electrical

High Level

and Safety

Services

Cleaning

Group

Total

£

£

£

£

£

Revenue

Total revenue

18,869,742

17,606,059

2,718,965

39,194,766

Total revenue from external customers

18,869,742

17,606,059

2,718,965

39,194,766

Operating profit before adjusting items

3,110,949

3,999,716

747,107

(907)

7,856,865

Restructuring costs

(235,288)

(188,141)

(68,883)

(492,312)

Share options granted to Directors and employees

(1,887,400)

(1,887,400)

Amortisation of intangible asset acquired

(486,733)

(12,500)

(499,233)

Contingent payments in relation to acquisitions

(100,000)

(1,361,043)

(400,000)

(1,861,043)

Segment operating profit

401,528

2,438,032

278,224

(907)

3,116,877

Net finance cost

(92,244)

(60,597)

(3,344)

(346,293)

(502,478)

Profit before taxation

309,284

2,377,435

274,880

(347,200)

2,614,399

Other segmental items

Segment assets

13,156,447

9,066,829

389,410

20,716,182

43,328,868

Segment liabilities

(5,565,181)

(8,220,348)

(496,222)

(17,003,225)

(31,284,976)

Capital expenditure

752,623

1,033,252

56,591

1,842,466

Depreciation

453,821

663,282

47,259

1,164,362

Segmental operating profit
The reconciliation of Adjusted EBITDA to statutory operating profit is shown below.

Access

Electrical

High Level

and Safety

Services

Cleaning

Group

Total

£

£

£

£

£

Adjusted EBITDA

3,564,770

4,662,998

794,366

(907)

9,021,227

Depreciation

(453,821)

(663,282)

(47,259)

(1,164,362)

Operating profit before adjusting items

3,110,949

3,999,716

747,107

(907)

7,856,865

Restructuring costs

(235,288)

(188,141)

(68,883)

(492,312)

Share options granted to Directors and employees

(1,887,400)

(1,887,400)

Amortisation of intangible asset acquired

(486,733)

(12,500)

(499,233)

Contingent payments in relation to acquisitions

(100,000)

(1,361,043)

(400,000)

(1,861,043)

Statutory operating profit

401,528

2,438,032

278,224

(907)

3,116,877

2015

Access

Electrical

High Level

and Safety

Services

Cleaning

Group

Total

£

£

£

£

£

Revenue

Total revenue

12,035,772

10,402,313

3,332,418

25,770,503

Total revenue from external customers

12,035,772

10,402,313

3,332,418

25,770,503

Operating profit before adjusting items

2,030,685

2,518,872

669,957

56,549

5,276,063

Restructuring costs

(114,030)

(115,127)

(13,792)

(242,949)

IPO costs

(520,777)

(520,777)

Head Office rebuild costs

63,891

63,891

Share options granted to Directors and employees

(2,259,364)

(2,259,364)

Amortisation of intangible asset acquired

(108,600)

(108,600)

Contingent payments in relation to acquisitions

(123,333)

(335,064)

(490,000)

(948,397)

Segment operating profit

(1,031,528)

2,068,681

166,165

56,459

1,259,867

Net finance cost

(428,883)

(428,883)

Profit before taxation

(1,031,528)

2,068,681

166,165

(372,334)

830,984

Other segmental items

Segment assets

7,437,448

2,169,577

1,317,932

16,458,547

27,383,504

Segment liabilities

(4,431,872)

(2,391,487)

(1,655,540)

(9,983,716)

(18,462,615)

Capital expenditure

685,467

761,688

56,499

1,503,604

Depreciation

427,771

422,671

48,447

898,889

Segmental operating profit
The reconciliation of Adjusted EBITDA to statutory operating profit is shown below.

Access

Electrical

High Level

and Safety

Services

Cleaning

Group

Total

£

£

£

£

£

Adjusted EBITDA

2,458,456

2,941,543

718,404

56,549

6,174,951

Depreciation

(427,771)

(422,671)

(48,447)

(898,889)

Operating profit before adjusting items

2,030,685

2,518,872

669,957

56,549

5,276,063

Restructuring costs

(114,030)

(115,127)

(13,792)

(242,949)

IPO Costs

(520,777)

(520,777)

Head Office rebuild costs

63,891

63,891

Share options granted to Directors and employees

(2,259,364)

(2,259,364)

Amortisation of intangible asset acquired

(108,600)

(108,600)

Contingent payments in relation to acquisitions

(123,333)

(335,064)

(490,000)

(948,397)

Statutory operating profit

(1,031,528)

2,068,681

166,165

56,549

1,259,867

Earnings per share
The calculation of basic earnings per share for the year ended 31 December 2016 was based on the profit attributable to ordinary shareholders of £2,299,573 (year ended 31 December 2015: £489,103).

2016

£

2015

£

Profit for the year attributable to owners of the parent

2,299,573

489,103

Weighted average number of ordinary shares in issue for the basic earnings per share

88,101,562

85,920,559

Basic and diluted earnings per share (in pence per share)

2.61

0.57

The calculation of adjusted earnings per share for the year ended 31 December 2016 was based on the profit before adjusting items of £6,721,419 (Year ended 31 December 2015: £4,187,699).

2016

£

2015

£

Adjusted earnings

6,721,419

4,187,699

Weighted average number of shares

88,101,562

85,920,559

Adjusted earnings per share (pence)

7.63

4.87

Annual Report
The annual report will be mailed to shareholders and will be available in due course on our website www.ptsg.co.uk.

Annual General Meeting
The annual general meeting will be held at 13 Flemming Court, Whistler Drive, Castleford, WF10 5HW on Monday 19 June 2017 at 2.00pm.

PTSG makes appointment at Tunbridge Wells Hospital

Premier Technical Services Group PLC (PTSG) will be carrying out an extensive clean to the facade of Tunbridge Wells Hospital, which has been badly affected by varying weather conditions over the last five years.

PTSG’s high level cleaning division will utilise a 30-metre mobile elevated work platform (MEWP) as well as a DOFF machine, which cleans stonework and masonry using high temperature steam, to perform a sensitive clean to the building’s walls. Whilst the temperature in the system is high, the pressure on the surface being cleaned is very gentle and the volume of water is low, meaning the surface does not become saturated and can dry quickly.

The new Tunbridge Wells Hospital is the first acute NHS hospital in Britain where every inpatient has their own room with en-suite facilities, with ceiling to floor windows revealing views over surrounding woodland.

PTSG has a growing portfolio of clients in the health sector, including Lincoln Hospital and the University Hospital of Wales, where it carries out a variety of maintenance works. In 2015, PTSG – in partnership with Cofely – was shortlisted in the ‘Partners in FM – Healthcare Facilities’ category of the prestigious PFM Awards.

PTSG upgrades Access Systems at former home of the BBC

Premier Technical Services Group PLC (PTSG) has been awarded a contract to upgrade access equipment at White City Place, a new business district in development at the former home of the BBC Media Village.

PTSG will be working across three commercial buildings, replacing two building maintenance units (BMUs) which are over 25 years old, with new BMUs that are compliant with current safety and quality requirements.

A team from the Access and Safety division will also upgrade the three buildings’ safety equipment, including safety lines, ladders and abseil posts to ensure the façade access system is modernised and up to date with current standards.

White City Place is located just 15 minutes from Bond Street station, and is set to create London’s most exciting mixed-use quarter. The development is still home to three BBC buildings: the Broadcast Centre, Energy Centre and Lighthouse building, which are home to more than 3,000 BBC staff.

PTSG’s Access and Safety division is formed of hundreds of highly-trained engineers across the UK, providing maintenance, inspection, testing and repair services for all types of equipment including building maintenance units, gantry systems, cradle systems, monorail systems and lifting equipment.

PTSG Non-Exec Director features in The Sunday Times

Premier Technical Services Group PLC (PTSG) Non-Executive Director, Roger McDowell, has been featured in the Sunday Times as the AIM Non-Executive Director of the Year.

The article documents Roger’s career journey; a highly successful businessman and entrepreneur, he was managing director of family pipeline distribution company Oliver Ashworth for eighteen years before its sale to St. Gobain, and is now chairman of Nottingham-based engineering manufacturer Avingtrans PLC.

Roger joined PTSG in 2015 as a Non-Executive Director.

To see the full article visit: http://www.thetimes.co.uk/edition/business/pinpoint-invest-and-exit-the-motto-of-the-lapsed-entrepreneur-pn0bn5h9t

PTSG develops bespoke access solution for The Mansion

Premier Technical Services Group PLC (PTSG) has been commissioned to perform access and safety works at a new development on Marylebone Lane in London’s iconic West End.

The Mansion is a proposed 22-unit residential building consisting of luxury apartments, due to be completed in March 2018. The building will be dressed in warm and reflective glazed terracotta external cladding, with a subtle variation in colour and shade to add visual interest and complexity.

PTSG’s fall arrest engineers will install a bespoke access system to allow a high level cleaning team to use abseil and rope access techniques to perform maintenance work and clean the large, glass-fronted building.

Paul Teasdale, CEO for PTSG, said: “This project shows PTSG’s expertise in using fall arrest systems to work around the complexities of new buildings. We have developed a specially designed davit base working with the steel worker to accommodate all of the drop locations.

“The project began with the architect and PTSG providing a solution, to working with the main contractor and developing the scheme further after understanding the building methods being used.”

PTSG is an industry leader for developing innovative access solutions, particularly on new developments with complex architecture. The Group’s high level cleaning division was recently featured in PFM magazine in an article detailing its multidisciplinary approach to cleans like this one, utilising the skills of PTSG’s access and safety division to access Sheffield’s tallest building, which was infamously difficult to clean.

PTSG’s outstanding approach to safety recognised with sixth award from British Safety Council

Premier Technical Services Group PLC (PTSG) has been recognised for its commitment to safety in the workplace with an International Safety Award from the British Safety Council.

PTSG received the award for its commitment to health and safety management from the British Safety Council. The awards are independently marked by experienced health and safety practitioners from various industries. This year, no fewer than 578 organisations applied for the awards.

PTSG Director of Safety, Health and Environment, Terry Wilcock, said: “This is the sixth consecutive year PTSG has received the International Safety Award from the British Safety Council. We have also received the gold award from the Royal Society for the Prevention of Accidents (RoSPA) for the last five consecutive years. Our philosophy is that if we can’t do something safely, we don’t do it at all.”

PTSG’s Chief Executive Paul Teasdale, said: “It is a fantastic achievement for PTSG to have received this award for the sixth year running. This once again highlights our ongoing commitment to best health and safety practices and our industry-leading safety-focused company culture.

“Safety is always our primary concern as a business and we are continually reviewing our processes and procedures to make sure what we do is safe for our people, our clients and the general public.”

2017 marks the 60th Anniversary of the British Safety Council. The winners of the 2017 awards are invited to attend a ceremony at the famous Grosvenor House Hotel in London on Friday 5th May.