Currently have no position but a very bullish trading update on Tuesday has so far gone virtually unrewarded and I am considering a small purchase. It is a very fragemented sector and PHSC has a good chance to lead the consolidation and thereby expand rapidly.

A read of the update - extracts below - should give those unfamiliar a flavour of what the company is all about, they provide safety advice to a wide range of blue chip customers, particularly regarding asbestos, but many other areas too. trading is traditionally strong at this time of year, says the company, as local authorities spend a lot of money in this quarter. Among their clients are Mercedes, Lee Cooper, Pilkington, Reuters and Virgin.

Worth a read if you are interested in this sort of area. As far as I know PHSC is the first specialist quoted company in this field and this is a strong trading statement indeed. it's quite illiquid and it should be noted the first half eps was heavily impacted by the cost of AIM admission, so this half should be much better.

"PHSC plc, the provider of health, safety and environmental services to
corporate and public sector clients, is pleased to announce that trading in the
third quarter of the current financial year fully met internal expectations and
that management anticipate a similar performance in the fourth quarter. The
Group currently have a record order book and continue to win new contracts. In
particular, the recently acquired Adamson's Laboratory Services Limited now has
a forward order book that approaches 3million.

Management accounts have now been completed for the third quarter of the
Group's trading year, covering the months of October, November and December
2005.

The monthly average of sales in the third quarter was 20% higher than the
monthly average sales achieved during the first half of the year which led to
trading profits in the third quarter being 60% above the average for the
previous two quarters.

Sales for the first three quarters of the current financial year were 2.9m and
the Group expects to be close to the top end of its internal target range of
3.8m to 4m of sales for the full year. Profits before plc charges and tax
currently stand at 456,000. Plc charges are 95,000 in the year to date.

It should be noted that the acquisition of Adamson's Laboratory Services
Limited ("ALS") was completed in mid-June, thus approximately 400,000 of ALS
sales will not be included in the Group's year-end profit and loss account.
This will, however, have a relatively small effect overall as only 25,000 of
profit arose from those sales.

Prospects for wholly-owned subsidiaries:

Personnel Health & Safety Consultants Limited ("PHSCL")

The company recently announced that it had been awarded an improved contract
with the Go-Ahead Group plc, valued at a minimum of 345,000 over three years.

Subscriptions to the company's safety advisor service continue to provide a
regular income, with 150,000 of subscriptions due in the last quarter of the
financial year. The company is leading a group-wide initiative to promote this
service through the use of a professional marketing organisation.

RSA Environmental Health Limited ("RSA")

The last part of the financial year is traditionally the busiest and most
lucrative for RSA. Most of the company's work is for local authorities for whom
31 March is a significant date by which certain performance and budgetary
targets must be achieved.

ALS

The company now has a forward order book which is approaching 3m, which is the
highest in the company's history. This includes substantial ongoing contracts
with local authorities, property management companies, the leisure sector,
housing associations, universities and other institutions. The demand for
asbestos management services continues to increase and the company is working
to full capacity over the last quarter of the financial year. New accounting
disciplines have been introduced and this will lead to the cessation of a
factoring arrangement in February, with a saving of 3,000 per month.

Health and Safety Click Limited ("HSCL")
This company was acquired for its future potential and a loss in the financial
year was anticipated. Management are predicting improvement in sales over the
coming months, and a narrowing of losses.........."

Nice move today; starting to play catch up? Still a long way to run though.

http://www.gwtltd.com/index.html

"a significant moment in the
development of the Group.
With both companies
currently trading ahead of last year's performance, the board is confident that this acquisition
represents extremely good value for our investors. With no dilution to existing shareholdings, there will
inevitably be an enhancement to earnings per share.

PHSC PLC ("the Company")

Heads of Agreement signed for acquisition

PHSC is pleased to announce that it has signed Heads of Agreement in respect of the acquisition by
PHSC plc of Guardian Water Treatment Limited ("Guardian").

Guardian is an air and water hygiene specialist, was established in 2000 and operates from its base in
Essex.

Air hygiene services include surveys, mechanical cleaning, biocidal disinfection, ductwork and kitchen
extract cleaning, and air quality monitoring. Water hygiene activities include a full range of
Legionella risk assessment and controls such as tank disinfection and cleaning, a full range of water
treatment services, and the supply of associated chemicals.

Turnover of Guardian for the year to 31 March 2007 was 2.1m, which generated pre-tax profits of
263,000.

Subject to agreement of all parties and satisfactory conclusion of due diligence by PHSC, completion
is scheduled for the third quarter of PHSC's accounting period ie the period ending 31 December 2007.

After a suitable handover period on terms to be agreed, the present Managing Director, Mark Hobson,
will leave the company and it is envisaged that Guardian will continue to be run by the existing
senior management team.

The maximum purchase price is 2.15m .

Stephen King, Managing Director of PHSC plc, said of the acquisition:

Guardian represents our largest acquisition to date, and the board sees it a significant moment in the
development of the Group. Results in the year to 31 March 2007 give combined turnover and profit
figures, before tax and exceptional items, of around 6.7m and 900k respectively. With both companies
currently trading ahead of last year's performance, the board is confident that this acquisition
represents extremely good value for our investors. Note that the consideration is planned to be funded
entirely from existing cash and future revenue. With no dilution to existing shareholdings, there will
inevitably be an enhancement to earnings per share.

From all time low last month to 12 month high on Friday, albeit in a narrowish range; with more news on the two acquisitions to come and interims next month on the back of that fine Trading Statement, I think the trend reversal is now established and the shares should be primed for a fine run through 2008.