PHSC says that pre tax profits for the nine month period to 31 December 2008 fell by 43% on a like-for-like basis to £313,013
(2007 £555,108).

For the full year, profits before tax and amotization of goodwill are expected to be in the region of £500,000 which compares with £730,000 for the previous year.

CEO Stephen King says: "Whilst revenues ( for the third quarter) are marginally higher, the general economic downturn and aggressive pricing by some competitors has impacted upon the margins we are able to achieve.

"On a positive note, we continue to remain profitable as a Group. Each subsidiary is actively adopting cost-saving measures, but it will take time for the effect of this to flow through.

"Against this backdrop it is difficult to forecast too far ahead, however, we still expect full year revenues of around GBP 5,000,000. Profit before tax and amortisation of goodwill etc is likely to be circa £500,000".

Net assets stood at GBP 4,871,000 as at 31 December 2008 of which cash was £879,742.

The share price fell sharply today, down 22.5% to 19p.