- Despite a reduction in total revenues of around 11% from the levels recorded at this stage in 2010/11, health and hygiene consultant PHSC has managed to achieve an improvement in margins.

Profits for the first nine months stood at GBP 226,711 before depreciation, amortisation of goodwill and tax, compared with GBP 198,889 at the end of the third quarter in the previous financial year.

Stephen King, CEO, commented: "The business continues to generate healthy cashflow. Our cash balance will reduce by around 13 per cent once the final payment for the acquisition of Quality Leisure Management Limited (QLM) is made.

The final payment is yet to be calculated but it is based on QLM's adjusted earnings. A sum of GBP 100,000 was budgeted for in the purchase agreement and we do not expect a huge deviation from that figure.

"In our last Annual Report I said that whilst conditions remain very difficult, we anticipated an improvement to profits in 2011/12.

"Provided that performance over our final quarter continues in a similar vein as the year to date, and there is no reason to think this will not happen, we will deliver full-year results in line with those management expectations."

At 9:39am: [LON:PHSC] share price was 0p at 16.5p

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