premier technical services group plc annual report 2014
annual report 2014
uk’s leading  
niche specialist 
services provider ptsg annual report and accounts 2014
premier technical services 
group plc ptsg is the  
uk’s leading niche specialist 
services provider offering a 
range of industryleading 
services across its four divisions 
access  safety electrical 
services high level cleaning 
and training solutions
our vision is to be “the standard against 
which other companies are measured”
vision
contents
strategic report
01 financial and operational highlights
02 group overview
04 chairman’s statement
06 market and key performance indicators
10 chief executive’s review
14 principal risks
corporate governance
16 board of directors
18 corporate governance
20 directors’ report
financial statements
22 independent auditors’ report
24 consolidated statement 
of comprehensive income
25 consolidated statement of changes 
in equity
26 consolidated balance sheet
27 consolidated cash flow statement 
28 notes to the consolidated  
financial statements
47 independent auditors’ report on the  
company financial statements
49 company balance sheet
50 notes to the financial statements ptsg annual report and accounts 2014
01
strategic report
corporate governance 
financial statements
“ i am pleased to report  
our highest levels of 
revenue gross profit and 
underlying profit before 
tax since the group’s 
formation in 2007”
john foley 
chairman
operational highlights
  the acquisition launch and integration of the trade and 
assets of acescott management services ltd – a leading 
high level cleaning rope access and working at height 
company based in london
  contract renewal rates reached circa 85
  the introduction of dedicated service delivery teams 
focused on each sector ensuring an individual tailored 
service is delivered to all customers
  strengthening our management team including a new 
managing director and a new financial director both 
from very senior roles within a successful ftse company 
  the successful integration of test strike our second 
testing and inspection business acquisition
  building on our position as the country’s leading access 
and safety business
  continued growth in electrical services with our lightning 
protection business ranking second in the uk overall
financial and 
operational highlights
ptsg has developed quickly and sustainably 
through acquisition and organic growth turnover 
and adjusted profit before tax were in line with 
market forecasts at £180m and £37m respectively 
in 2014 we began the ipo process with the 
objective of floating on aim in february 2015  
a move that helped us to raise additional funds  
to support our ongoing strategic growth plans  
the primary objective of ptsg’s ongoing strategic 
growth plan is to achieve a balance between 
financial security return on equity and growth
revenue
£180m
296
gross profit
£103m
228
ebitda
£47m
253
profit before tax
£37m
222
 
  before adjusting items of £25m resulting in a 
statutory profit before tax of £12m ptsg annual report and accounts 2014
02
strategic report
group overview
 ptsg at a glance
ptsg is a leading provider of façade access and 
fall arrest equipment services lightning protection 
electrical testing high level cleaning and industry 
training solutions in the uk
we supply highlyengineered industrial 
products and quality services with a 
substantial presence in a number of 
focused niche markets
our teams are highly trained and 
experienced ensuring all equipment is 
always operational and safe we operate 
to the latest safety legislation and 
guidelines and our practices have been 
recognised by the british safety council
our products and services put our 
customers’ needs first to bring better 
value in all that we offer and all that we do
ptsg is the parent company of ptsg 
access and safety ptsg electrical 
services ptsg high level cleaning and 
ptsg training solutions
it provides a central information service  
for the business and champions the 
dissemination of key information and best 
practice ptsg unites the company’s 
constituent businesses under one clear 
identity to support the broader use of 
smarter working as a modern day 
approach to delivering a top class service 
for the people we serve
due to our office locations we are able to 
provide full uk coverage and we are happy 
to take onboard projects of all sizes
we do everything by word of mouse
in 2014 we launched mouse 
memorable outstanding unique 
service experience a unique customer 
focused initiative mouse serves as 
ptsg’s internal conscience a permanent 
reminder about why ptsg exists and the 
importance of getting customer service 
right – first time every time it is the 
backbone of the company and has 
become a corporate mascot for all its 
internal and external communications
ptsg access and safety is a leading 
supplier of maintenance inspection 
and testing solutions for safety at 
height as well as the design and 
installation of permanently installed 
façade access equipment and fall 
arrest equipment
not only are customers reassured by 
our vast experience but we also offer a 
range of other benefits as standard to 
ensure that your job is completed to the 
highest standards of quality and safety
  helpdesk
  24 hour callout
  health and safety
  quality accreditations
  environmental accreditations
  membership of relevant trade 
associations ptsg annual report and accounts 2014
03
strategic report
corporate governance 
financial statements
53
37
10
turnover
access and safety
electrial services
high level clearing
ptsg electrical services is a leading 
supplier of lightning and surge 
protection pat testing fixed wire 
testing and emergency lighting testing 
across the uk
our work saves lives time and money 
it really is as simple as that 
ptsg electrical services is uk crb
disclosure scotland approved and is 
niceic registered
whether it is the testing of a portable 
appliance or the design and installation 
of a complete building lightning 
and surge protection system ptsg 
electrical services delivers an 
unsurpassed level of expertise and 
experience leaving customers 
confident that their staff buildings  
and customers are safe
ptsg high level cleaning delivers 
industryleading high level building 
cleaning solutions for commercial 
industrial and public buildings
our team has many years’ experience 
in delivering our services at height  
our extensive knowledge of working  
at height means that we can access 
virtually any part of any building – 
either internally or externally for 
cleaning and refurbishment purposes
our services include
  high level cleaning
  window and gutter cleaning and 
maintenance
  building fabric and specialist 
cleaning
  pressure washing
ptsg training solutions limited is 
committed to helping individuals 
develop their skills and expertise
over the years ptsg’s people have 
worked closely with industry bodies  
to shape vocational qualifications  
and training this knowledge and 
experience especially in training for 
people who work at height gives 
ptsg an unrivalled position in being 
able to offer forwardthinking and 
responsive workplace training that 
truly meets the needs of employees 
and employers alike ptsg annual report and accounts 2014
04
strategic report
chairman’s statement
“ as chairman  
of ptsg i am 
extremely proud  
of our people and 
their achievements”
john foley 
chairman
overview of results
ptsg’s results for the year ended  
31 december 2014 showed very strong 
growth and i am pleased to report our 
highest levels of turnover gross profit  
and underlying profit before taxation  
since the group’s formation in 2007
turnover increased by 30 to £180 
million 2013 £139 million gross profit 
increased by 23 to £103 million 2013 
£84 million and underlying profit before 
tax also increased by 22 to £37 million 
2013 £30 million adjusted earnings  
per share increased by 39 to 377p 
2013 271p net debt at 31 december 
2014 was £50 million which was an 
increase of £04 million from the previous 
year end and which reflects the increased 
levels of working capital necessary to fund 
the larger scale of the group together with 
£09 million of capital payments to acquire 
businesses plant and equipment net of 
asset disposals
profit before taxation after adjusting  
items was £12 million adjusting items  
are considered to be either one off or 
nontrading items in nature and include 
deferred consideration payable to previous 
business owners who remain as ptsg 
employees head office rebuild costs and 
ipo costs
2014 was an important year for ptsg for 
two reasons first we took an important 
step in establishing a high level cleaning 
division following the acquisition of the 
trade and certain assets of acescott 
management services limited – a leading 
high level cleaning rope access and 
working at height specialist based in 
london second we undertook the 
majority of work necessary to take ptsg 
public and we were formally admitted to 
aim on 11 february 2015 as a result of a 
successful ipo process
as admission occurred after the financial 
year end no further dividends are 
proposed in respect of the year ended  
31 december 2014
operational highlights
although “buy and build” is an important 
part of our growth story – we have 
successfully executed 12 acquisitions 
since 2007 – it is not at the expense of 
organic growth we achieved organic 
turnover growth of 16 in 2014 if the 
turnover of 2014 acquisitions is excluded 
we secured both numerous new single 
service contracts with customers and a 
further number of multi service contracts 
with large fm customers there are a 
number of aspects to our service delivery 
which we believe are “best in class” 
including our contract renewals key 
accounts and health and safety support 
functions and these functions continue  
to be strengthened to assist with the 
increased scale of operations our 
retention rate on maintenance contract 
renewals is approximately 85 our gross 
margins remain consistently high and year 
on year comparisons are mainly impacted 
by the level of installation work to testing  ptsg annual report and accounts 2014
05
strategic report
corporate governance 
financial statements
and repair work our business model is 
centred around a 20 return on turnover 
at the adjusted ebit level and this target 
was once again achieved in 2014
strategy
ptsg has a very clear strategy and a tried 
and tested business model which can 
successfully convert that strategy into 
excellent financial performance ptsg is  
a niche specialist services provider which 
seeks to be a market leader in every area 
in which it operates our access  safety 
and electrical services divisions already 
possess sufficient scale to be considered 
as leading businesses in their respective 
areas of operation our niche focus is a 
differentiator and the services offered to 
customers in the fm marketplace have 
high barriers to entry and regulatory 
drivers which need an established 
business model to successfully handle  
a high volume of low value transactions
the board
the board has been strengthened in 
recent months to enable us to continue 
our path of profitable growth as a publicly 
quoted company roger teasdale and 
mark watford have joined us as group 
managing director and group finance 
director respectively to strengthen our 
executive management team roger 
mcdowell and alan howarth joined the 
board as nonexecutive directors in 
february 2015 when ptsg was admitted 
to aim and have a wide range of public 
company experience to draw upon in  
their roles with ptsg paul teasdale  
and i remain as group chief executive  
and chairman respectively the board 
recognises the value and importance of 
high standards of corporate governance 
and looks forward to working together to 
direct and oversee the next stage in 
ptsg’s development
our people
as a founding shareholder i can remember 
when our first employee joined in 2007 
we now have 230 employees and we are 
growing with almost every passing month 
since formation we have all been a part  
of a successful story we have won 
industry awards for our service delivery 
and grown in scale because of the 
partnership between the board our senior 
management and our employees this 
partnership guides our thoughts and 
actions for the benefit of everyone involved 
in ptsg as chairman of ptsg i am 
extremely proud of our people and their 
achievements and thank them for their 
continuing efforts
outlook
the first three months trading of 2015 
have been encouraging and in line with  
the board’s expectations we have  
a significant pipeline of acquisition 
opportunities which have been internally 
identified and we expect to conclude our 
first acquisition as a public company in  
the second quarter of 2015 we face the 
future with confidence
john foley
chairman
27 april 2015 ptsg annual report and accounts 2014
06
strategic report
market and key 
performance indicators
ptsg has a tried tested and 
successful business model the 
founding partners and shareholders 
have more than 14 years’ experience 
working together a clear business 
plan with both geographical 
expansion and expansion into new 
sectors allows real opportunities for 
further growth 
the company’s unique selling points 
are customer service reliability 
price expertise and sector 
dominance ptsg’s customers’ 
unique service experience facilitates 
high client retention and has been 
recognised by a number of nationally 
recognised industry bodies the 
company has a proven track record 
on acquisitions management 
integration and growth 
ptsg’s market position across its 
access and safety electrical 
services and high level cleaning 
divisions is as follows
turnover 
£959m
ebit 
£174m
operating profit 
181
estimated uk market share
5
  consistent strong performance
  consolidation of our market leading 
position
before adjusting items ptsg annual report and accounts 2014
07
strategic report
corporate governance 
financial statements
turnover 
£658m
ebit 
£188m
operating profit
285
estimated uk market share
4
  strong organic growth 
  acquisitions successfully integrated
  service offering expanded into 
electrical testing
turnover 
£183m
ebit 
£042m
operating profit
227
estimated uk market share
3
  acescott fully integrated into 
ptsg model
  expanded service offering to 
ptsg’s and acescott’s existing 
customer base
  enhances cross selling 
opportunities to drive organic 
growth
  acquisition to be targeted to expand 
this division
before adjusting items before adjusting items ptsg annual report and accounts 2014
08
financial statements
market and key 
performance indicators
continued
market position
ptsg is focused on the provision of specialist services to niches 
in markets that are characterised by high regulation and strong 
longterm drivers with many of its activities non discretionary  
for customers
ptsg believes it can maintain and expand its position in its 
chosen markets due to its competitive advantage ability to 
achieve and sustain high margins strong organic growth 
potential due to its wide customer base and cross selling 
opportunities coupled with its proven ability to successfully 
integrate acquisitions in complementary areas of activity
competitive advantage
  established business model delivers high margins 
  nationwide uk engineering coverage economies of scale 
  bespoke operational and crm software leads to margin 
sustainability 
  broadening multiservice coverage 
  huge customer base
margin sustainability
  contract renewal rates circa 85
  largest uk repair and maintenance contract base in access 
and safety 
  seven year track record of £1 repair to £1 maintenance 
  efficiency of model works in all sectors 
  awardwinning services create further fm supply agreements
major customers and organic growth
in most cases we start by delivering single services before being 
asked to deliver more cofely mitie and ms are three examples 
of clients to whom we began by delivering access and safety 
services now they are taking advantage of our wider service 
offerings including electrical and high level services 
we have an extensive customer base with no significant exposure 
to any one customer and just 5 of our customers currently 
receive more than one service
although we are a market leader in a number of areas we still 
have less than 10 market share in our principal markets which 
provides significant scope for further growth
key performance indicators
there are many financial and operating performance indicators 
regularly monitored by the group the primary financial 
performance indicators are
  revenue growth 30 2013 15
  gross profit percentage 573 2013 605
  operating profit before adjusting items £4007400 
2013 £3159912
  profit before tax before adjusting items £3702370 
2013 £3029118
additional key performance indicators specific to certain revenue 
streams
  customer renewal rates
  new sales generation
  service delivery performance 09
strategic review
corporate governance 
financial statements
ptsg annual report and accounts 2014
acquisition case study 1 – thor lightning protection 
acquired in december 2010 for £1 turnover 
of £572k and an operating loss of £167k for 
year ended 31 december 2010 and external 
debt of £35k
immediately after the acquisition ptsg  
cut out unnecessary expenditure and 
implemented our operating procedures and 
policies this coupled with the ability to offer 
new services to our existing customer base 
enabled the business to increase its turnover 
to £13m in 2011 and generate an operating 
profit of £374k preexceptional items
in 2012 we continued to successfully grow 
thor and the outturn was an operating profit  
of £493k on a turnover of £18m
the knowledge gained through the successful 
integration of thor gave the group a strong 
base on which to develop its electrical services 
division
premanagement charge ptsg annual report and accounts 2014
10
strategic report
chief executive’s 
review
“ ptsg enjoyed another fantastic year 
in 2014 as we continued our rapid 
growth since foundation in 2007 
 
it was a year structured with  
highprofile appointments  
headlinegrabbing contract  
wins and prestigious accolades”
paul teasdale 
chief executive officer
overview
in 2014 ptsg comprised four offerings 
access and safety electrical services 
high level cleaning and specialist training 
we expanded into high level cleaning and 
maintenance with the acquisition of the 
trade and assets of acescott management 
services limited “acescott” in july 2014 
acescott contributed £041m to adjusted 
operating profits in 2014 
topline performance has remained strong 
with turnover increasing to £180m 2013 
£139m and operating profits before 
adjusting items increasing by 27 to £40m 
2013 £32m driven by robust adjusted 
ebit margins which remained consistently 
high at 223 reflecting the specialist and 
skilled nature of our activities our strong 
focus on cost control and operating model 
while remaining competitive on pricing 
statutory profit before tax after adjusting 
items was £12m
we have also delivered strong organic 
growth across the group – most notably 
in electrical services where revenue grew 
by 58 and adjusted operating profits 
by 56 our niche specialist services 
are sold on a recurring basis under 
contract to a retained customer base 
we have continued our high client 
retention figure of over 85 on annual 
orders driven by the quality of service 
and our competitive pricing
market environment
demand for our services is underpinned  
by regulatory requirements around the 
installation maintenance and testing of 
access and safety systems lightning 
protection and electrical equipment as well 
as insurance compliance requirements 
and general repair and maintenance
many of our customers are streamlining 
their businesses through supplier 
rationalisation moving to single source 
supply which is benefiting the group  
and is expected to continue in the future  11
ptsg annual report and accounts 2014 strategic review
corporate governance 
financial statements
acquired in november 2013 and brought  
into line with the ptsg operating model  
test strike is already delivering beyond  
initial forecasts and expectations 
for the year ended 31 august 2013 test 
strike achieved turnover of £823k and 
generated an operating profit of £123k 
implementing ptsg’s operating policies  
and procedures together with back office 
support has enabled test strike to increase 
acquisition case study 2 – test strike
revenue
£13m
58
operating profits
£06m
376
its turnover in 2014 to £13m generating an 
operating profit of £586k
premanagement charge
 ptsg annual report and accounts 2014
12
strategic report
strategy
we aim to build our market share in  
each of our niche services to markets 
characterised by high regulation longterm 
growth drivers and nondiscretionary 
spend for customers
as the uk’s market leader in access and 
safety services and one of the industry’s 
leading lightning protection businesses  
we are well positioned to capitalise on our 
recent entry into the high level cleaning 
market with organic growth and cross 
selling opportunities
our major customers include the us air 
force marks  spencer plc royal bank  
of scotland plc unite sheffield hallam 
university network rail harrods motorola 
airbus morgan sindall willmott dixon 
carillion barclays land securities land 
rover and manchester united plc
our strategy is to generate significant 
shareholder value through organic growth 
including crossselling and complementary 
acquisitions just 5 of customers 
currently receive multiple lines of service 
with considerable scope to improve  
this and increase profitability 
while we are already a market leader in  
a number of our operations we still have  
a less than 10 share in our principal 
markets and there is significant scope  
for growth 
acquisitions 
ptsg has a track record of successfully 
integrating acquisitions in complementary 
areas of activity and driving improved 
operational and financial performance
we are committed to pursuing acquisition 
opportunities in existing and adjacent 
markets with a view to crossselling 
services and leveraging our client base  
we are attracted to opportunities in our 
core markets where ownermanagers  
are interested in playing a role in the 
enlarged business 
ptsg’s first acquisition national cradle 
maintenance limited was in 2007 and  
was funded by £09 million of equity from  
the founders since then we have made  
11 subsequent acquisitions at a total 
consideration of £72 million and our  
most recent acquisition acescott was 
completed in july 2014 
our inhouse acquisitions team considers  
a strong pipeline of opportunities including 
boltons to existing divisions and 
businesses with activities in new and 
adjacent sectors the board will consider 
acquisitions that allow the group to enter 
attractive new markets where we can 
leverage our operational and managerial 
framework expand existing operations 
geographically to increase our penetration 
of the uk market and grow operations  
in an existing market and geography 
leveraging economies of scale to improve 
margins 
we have a pipeline of acquisition 
opportunities which will carry us through 
2015 2016 and 2017 our first acquisition  
is planned for the second quarter of 2015
we already carry out training but only on  
a limited scale and we are confident that  
a training division will complement the 
group’s other activities over 2015 and 
2016 we intend to significantly expand the 
group’s specialist training activities by 
acquisition for instance certification is 
already an important part of the access 
and safety and electrical services 
divisions and the group also provides  
its own engineers with regular training to 
maintain their compliance with any changes 
to the inspection and testing regimes
divisional results 
we have achieved strong levels of organic 
growth by improving operational processes 
and efficiencies reducing costs being 
more competitive and establishing new 
partnerships and relationships 
over 2014 we spent £01m on software 
development to increase productivity 
efficiency and reduce costs we have also 
signed new supply chain and framework 
agreements including mitie and interserve 
and renewed our three year contract 
with ms 
access and safety is the group’s largest 
and longest established division and 
provides maintenance inspection and 
testing solutions for the highlyregulated 
area of “working at height” as well as the 
design and installation of permanently 
installed façade access and fall arrest 
equipment contracts often include both 
the initial installation of access solutions 
and ongoing maintenance the majority of 
clients enter into a contract for a period of 
three to five years
the division generated sales of £96m and 
adjusted ebit of £17m for the year ended 
31 december 2014 
electrical services is currently the group’s 
second largest division with sales of £66m 
and adjusted ebit of £19m in the year 
ended 31 december 2014 the division is 
an established provider of lightning and 
surge protection systems pat testing  
and fixed wire testing services it is involved 
in both installation services and the 
maintenance testing and repair of systems 
lightning protection is the largest business 
within ptsg electrical services
our newest division is ptsg high level 
cleaning our acquisition of acescott an 
established business with expertise in the 
design and application of cleaning systems 
for large and complex buildings in july 2014 
contributed £04m to adjusted operating 
profits and £18m of revenue to the group 
for the year ended 31 december 2014
high level cleaning includes a wide  
range of specialist cleaning services from 
commercial window cleaning to pressure 
washing of cladding façades guttering 
and rooftops and graffiti and chewing gum 
removal customers’ buildings include 
office blocks shopping centres factories 
and hotels ptsg has a clear advantage  
in tailoring projects that require complex 
access systems to clean and maintain 
buildings externally with minimal 
disturbance to the occupiers 
chief executive’s 
review continued ptsg annual report and accounts 2014
13
strategic report
corporate governance 
financial statements
ptsg receives great feedback every day of the week which is a great 
testament to the work that the team delivers day in day out here are 
just a few of our customers’ comments about the company’s work
new staff
we have a highly experienced management 
team with extensive industry experience 
that is focused on creating shareholder 
value through organic and acquisitive 
growth over 2014 we welcomed two  
new executive members to strengthen  
our board who each bring a wealth of 
experience and knowledge and will help  
to drive ptsg forward and achieve our 
strategic goals mark watford joined the 
group as finance director in september 
2014 and is a chartered accountant 
previously mark was a vice president of 
finance at smith  nephew plc roger 
teasdale joined the group as managing 
director on 17 november 2014 and was 
previously president of the advanced 
wound management division divisional 
revenue of 14 billion with 4000 
employees of smith  nephew plc 
since the end of the year we have also 
welcomed alan howarth and roger 
mcdowell as nonexecutive directors alan 
was appointed as a director of chamberlin 
plc in january 2007 and was previously a 
partner in ernst  young he is chairman of 
cerillion technologies limited and essentia 
limited and has further nonexecutive 
interests in a range of private companies
roger was managing director of oliver 
ashworth for 18 years and led its main 
market listing and subsequent sale  
to saintgobain sa he is currently the 
chairman or a nonexecutive director of 
eight quoted companies 
outlook for 2015
we have had a good start to 2015  
and continue to trade in line with our 
expectations our first acquisition is 
planned for the second quarter of 2015 
with a good pipeline of future opportunities
on 11 february 2015 we listed on aim 
raising £5m for ptsg and were delighted to 
become the first yorkshirebased business 
to ipo in 2015 we are acutely aware of the 
need to continually reinvest in the group in 
order to promote future growth both 
organically and through acquisition
customer quotes
jenni harcombe ppm and 
compliance support manager for 
fm at marks and spencer said 
“ptsg is by far our best fm supplier 
their unique delivery model ensures 
that they work consistently and deliver 
to a fantastic standard i really can’t 
speak highly enough of the work that 
ptsg does for us”
gary haines from unite said 
“ptsg gets what true partnership is 
actually all about and that effective 
communication is fundamental to 
maintain transparency and trust this is 
helping from a continuous improvement 
perspective where compliance and the 
right corrective actions are making a 
real difference to both businesses 
“ptsg has developed an understanding 
of unite’s building characteristics so 
that the team can deliver a bespoke 
onsite management service acting  
as facilities officers porters informal 
security and technician the company’s 
building managers ensure that unite 
receives a consistent high quality 
service”
simon pateman stations manager 
at tubelines said “ptsg has 
developed processes for ensuring  
that innovation is driven through their 
relationship at all levels 
“we are benefiting through pooling 
knowledge and resources to identify 
value creation and innovation 
opportunities both organisations have 
worked hard to implement changes  
that add value to the relationship
“we have created an effective 
operational environment to harness the 
value of partnership working to deliver 
individual and collective business goals
“together through strong and effective 
collaborative working we are keeping 
london on the move”
wwwptsgcouk 
“ pipeline of acquisition 
opportunities for 2015 
2016 and 2017”
paul teasdale 
chief executive officer ptsg annual report and accounts 2014
14
strategic report
principal risks
the board carefully considers the risks 
facing the group and endeavours to 
minimise the impact of those risks 
the key risks are as follows
failure of product or system could 
result in litigation damage to the 
group’s reputation and potentially  
the loss of customers
description
the group is obliged to comply with 
health  safety and environmental 
regulations although the group performs 
internal health  safety audits as well 
as being externally audited at regular 
intervals by quality accreditation bodies 
and large blue chip customers there is 
no guarantee that it will be able to comply 
with these regulations the group carries 
out inspections of equipment and there is 
the possibility that human error will result 
in equipment that is unsafe to use being 
utilised by employees or third parties 
to whom the group has a duty of care 
this could result in personal injury and 
litigation proceedings against the group in 
respect of health  safety matters criminal 
prosecution andor a civil claim
there can be no assurance that claimants 
in any litigation proceedings will not 
be able to devote substantially greater 
financial resources to any litigation 
proceedings or that the group will prevail 
in any such litigation any litigation 
whether or not determined in the group’s 
favour or settled by the group may be 
costly and may divert the efforts and 
attention of the group’s management and 
other personnel from normal business 
operations
if the group is unsuccessful in its defence 
it could result in a loss of reputation and 
decreased sales along with either a large 
settlement or an increase in the group’s 
insurance premiums should the litigation 
claim be covered by the group’s insurance 
policy the group’s insurance cover may 
also not be sufficient to cover fully any 
liability even if the group was successful 
in defending a claim the group’s 
reputation could be damaged by such an 
incident potentially resulting in the loss of 
customers although the group will benefit 
from the ptsg branding for marketing 
purposes should an incident occur this 
loss of reputation could impact other 
areas of business to a greater extent than 
if they had their own individual branding
an incident involving personal injury could 
also result in an official investigation or 
enquiry in respect of health  safety issues 
concerning the group’s operations these 
investigations may result in a loss of the 
group’s health  safety certifications and a 
loss of contracts where these certifications 
are a requirement
mitigation
the group has strong risk management 
policies procedures and management 
systems throughout the organisation 
these have been assessed as compliant 
to regulatory requirements by our 
stakeholders and internal health  
 safety team
the group has been assessed approved 
and registered as certified holders of the 
iso 90012008 bs ohsas 180012007 
and iso 140012004 standards
ability to attract retain and develop a 
sufficiently skilled and experienced 
workforce to meet the targets set by 
the group and its customers
description
our employees are critical in delivering 
our objectives not having employees with 
appropriate skills and experience could 
lead to poor delivery of service which 
could impact on the performance of  
the business
the group is managed by certain key 
personnel including executive directors 
and senior management who have 
significant experience within the group 
and the wider sector and may be difficult 
to replace
mitigation
the group has invested in staff training 
programmes competitive rewards 
compensation packages management 
incentive schemes and succession 
planning in addition the group has 
invested in apprenticeship programmes 
to provide a supply of qualified staff from 
within the group
the group has entered into contractual 
arrangements including longterm 
incentive structures with key personnel 
to secure their services additionally a 
strong management structure has been 
developed which would enable the group 
to continue to operate effectively in the 
event of the departure of a member of the 
senior management team
the group’s it systems could fail due 
to a severe it fault or cyber crime 
resulting in a loss of business andor 
sensitive data
description
the group is reliant on a number of 
systems to manage the entire process 
from creating orders in the system 
through to payment the systems used 
are dependent on each other to be able 
to complete their processes therefore 
a failure of any of the core it systems 
may result in failures of other it systems 
as well which in turn could result in 
interruption to the efficient operation of  
the group’s services
the group relies to a significant degree on 
the efficient and uninterrupted operation 
of its computer and communications 
systems and those of third parties 
including the internet
customer access to the customer portal 
and the speed with which customers 
and suppliers navigate and interact 
with the procurement process in their 
portal affects the sales of the group and 
the attractiveness of its services any 
failure of the internet generally or any  ptsg annual report and accounts 2014
15
strategic report
corporate governance 
financial statements
failure of current or new computer and 
communication systems could impair 
the value of projects the processing 
and storage of data and the daytoday 
management of the group’s business
mitigation
the group maintains tight access 
controls over its data and it systems 
and continually monitors performance 
the group’s internal it team ensures all 
performance issues are resolved promptly
the group has disaster recovery and 
business continuity contingency plans if 
a serious disaster affecting the business 
systems or operations occurred the 
recovery plan aims to enable the group 
to recommence trading without loss of 
business 
commercial construction market  
and general economic conditions
description
a general downturn in the construction 
industry in the uk could affect the group 
given the reliance to an extent of the 
installation activities of access and safety 
and electrical services on construction 
projects a general economic downturn 
could lead to a decline on the volume of 
the group’s sales
mitigation
the board believes that a general 
downturn should not adversely affect the 
business of the group as its business is 
not concentrated in one single area of 
construction with involvement in public 
sector projects as well as commercial 
and retail sectors also the group 
benefits from a significant proportion of its 
revenues being generated from ongoing 
contracts for maintenance driven by 
regulatory requirements rather than solely 
installations which are largely driven by the 
rate of new build completions
acquisitions
description
the directors will seek to target 
acquisitions in line with the group’s 
strategic objectives however there is a 
risk that some of the expected benefits of 
such acquisitions will fail to materialise or 
that significant expense may be incurred 
with the integration in addition there can 
be no guarantee that there will be any 
suitable acquisition opportunities available
mitigation
the group has already identified several 
businesses which the board will consider 
acquiring in 2015 in addition the board 
continually identifies new potential 
acquisitions and maintains ongoing 
dialogue with these which would enable 
these acquisitions to be brought forward 
if any of the current acquisition targets do 
not complete
the group has a successful track 
record of acquiring and integrating 
businesses and conducts extensive due 
diligence before any purchase which 
will help mitigate any issues surrounding 
integration
there can be no assurance that  
the group will achieve increased 
market penetration and competition 
could increase
description
the board believes that the group can 
achieve greater market share across the 
three divisions however there can be no 
guarantee that this will be achieved also 
competitive pressures could increase 
including through new entrants to the 
market which could detrimentally impact 
the group’s performance 
mitigation
the group has a strong track record of 
organic growth and has invested in its 
staff systems and procedures to ensure 
that they deliver exceptional services 
to its customers such service will help 
retain existing customers and attract new 
customers complementary acquisitions 
will aid market penetration
third parties and retained 
subcontractors
description
third parties or subcontractors retained 
by the group may be involved in improper 
activities which result in penalties or loss 
of reputation
mitigation
the majority of work undertaken by 
the group is undertaken by its own 
employees in those cases when third 
parties or subcontractors are used a 
rigorous vetting procedure is undertaken 
to ensure their capability and suitability 
and once appointed receive site rules
force majeure
description
a fire explosion flood earthquake or 
hurricane at a major site could result in  
the inability to meet customer orders
mitigation
the group has disaster recovery and 
business continuity contingency plans if 
a serious disaster affecting the business 
systems or operations occurred the 
recovery plan aims to enable the group 
to recommence trading without loss of 
business the group’s disaster recovery 
plans were tested in march 2014 when a 
construction work related incident resulted 
in a significant temporary loss of primary 
data however the group’s operations 
remained uninterrupted
strategic report 
the strategic report was approved by the 
board of directors on 27 april 2015 and 
signed on its behalf by 
pw teasdale
chief executive officer 
27 april 2015  ptsg annual report and accounts 2014
16
corporate governance
john foley
chairman
john is a cofounder of the group and 
was chief executive of maclellan group 
plc “maclellan” a facilities services 
company from 1994 until it was acquired 
by interserve plc for an enterprise value of 
£130 million in june 2006 at the time of 
john’s appointment maclellan was loss 
making with a turnover of circa £5 million 
and 50 employees when it was sold to 
interserve maclellan had a turnover of 
circa £250 million and a profit before tax  
of circa £9 million with 13500 employees 
maclellan grew through a series of 
acquisitions and organic growth john  
is a chartered accountant and barrister
paul teasdale
chief executive officer
paul is a cofounder of the group and has 
significant experience and expertise in the 
access and safety sector having founded 
tass europe limited “tass” whose 
activities included the installation repair 
and maintenance of safety eyebolt 
systems cradle and safety ladder tie 
systems in 1999 tass was sold to 
maclellan in 2004 for £6 million and paul 
joined maclellan as managing director of 
tass
roger teasdale
managing director
roger joined the group as managing 
director in november 2014 and was 
previously president of the advanced 
wound management division divisional 
revenue of 14 billion with 4000 
employees of smith  nephew plc  
roger was employed by smith  nephew 
plc for 25 years and held a number of key 
roles including president of their north 
american business president of their 
extruded films division and senior vice 
president of advanced wound care roger 
is a qualified chartered accountant and 
holds a ba in accounting and 
management control
board of directors ptsg annual report and accounts 2014
17
strategic report
corporate governance 
financial statements
mark watford
finance director
mark joined the group as finance director 
in september 2014 and is a chartered 
accountant previously mark was a vice 
president of finance at smith  nephew 
plc and a member of the global executive 
management team of its advanced wound 
management division prior to smith  
nephew plc mark was finance director 
and managing director of a regional firm of 
building contractors
alan howarth 
nonexecutive director
alan joined the board on admission alan 
was appointed as a director of chamberlin 
plc in january 2007 and was previously a 
partner in ernst  young he is chairman 
of cerillion technologies limited and 
essentia limited and has further  
nonexecutive interests in a range of 
private companies
 
roger mcdowell
nonexecutive director
roger joined the board on admission he 
was managing director of oliver ashworth 
for 18 years and led the main market 
listing and subsequent sale to saint
gobain sa he is currently the chairman 
or a nonexecutive director of eight listed 
companies namely avingtrans plc 
servelec group plc inspired capital plc 
alkane energy plc swallowfield plc is 
solutions plc proteome sciences plc and 
augean plc
  ptsg annual report and accounts 2014
18
corporate governance
corporate governance
the board recognises the value and importance of high 
standards of corporate governance accordingly whilst the uk 
corporate governance code does not apply to aim companies 
the board intends to observe the requirements of the corporate 
governance code for small and midsize companies “the 
code” published by the quoted companies alliance to the 
extent they consider appropriate in the light of the group’s size 
stage of development and resources in anticipation of admission 
the company established external independent representation 
on the board by the appointment of alan howarth and roger 
mcdowell as independent nonexecutive directors on admission
premier technical services group plc listed its ordinary shares 
on aim on 11 february 2015 and therefore the requirements of 
the code have only applied to the company since that date 
accordingly this report includes a description of how it intends  
to apply those principles since admission
board
the board will be responsible for the overall management of 
the group including the formulation and approval of the group’s 
longterm objectives and strategy the approval of budgets the 
oversight of group operations the maintenance of sound internal 
control and risk management systems and the implementation 
of the group’s strategy policies and plans whilst the board may 
delegate specific responsibilities there will be a formal schedule 
of matters specifically reserved for decision by the board such 
reserved matters will include amongst other things approval of 
significant capital expenditure material business contracts and 
major corporate transactions the board will formally meet on a 
monthly basis to review performance
the board will have an audit committee and a remuneration 
committee with formally delegated duties and responsibilities
each of the directors is subject to either an executive service 
agreement or letter of appointment the company’s articles of 
association require one third of directors to retire at every annual 
general meeting
audit committee
the audit committee will be responsible for monitoring the 
integrity of the company’s financial statements reviewing 
significant financial reporting issues reviewing the effectiveness 
of the company’s internal control and risk management systems 
and overseeing the relationship with the external auditors 
including advising on their appointment agreeing the scope of 
the audit and reviewing the audit findings
the audit committee comprises john foley alan howarth and 
roger mcdowell and will be chaired by john foley the audit 
committee meets at least three times a year at appropriate times 
in the reporting and audit cycle and otherwise as required the 
audit committee will also meet regularly with the company’s 
external auditors
remuneration committee
the remuneration committee will be responsible for determining 
and agreeing with the board the framework for the remuneration 
of board members and other designated senior executives and 
within the terms of the agreed framework determining the total 
individual remuneration packages of such persons including 
where appropriate bonuses incentive payments and share 
options or other share awards the remuneration of non
executive directors will be a matter for the chairman and the 
executive members of the board no director will be involved in 
any decision as to his or her own remuneration 
the remuneration committee comprises john foley alan 
howarth and roger mcdowell and will be chaired by john foley 
the remuneration committee will meet at least twice a year and 
otherwise as required
board balance and independence
the code recommends a balance between executive and 
nonexecutive directors the company has two nonexecutive 
directors in addition to the chairman and three executive 
directors thus providing balance within the board
the directors consider all nonexecutive directors to be 
independent
share dealing code
the company has adopted a share dealing code for the directors 
and applicable employees of the group for the purpose of 
ensuring compliance by such persons with the provisions of 
the aim rules relating to dealings in the company’s securities 
including in particular rule 21 of the aim rules the directors 
consider that this share dealing code is appropriate for a 
company whose shares are admitted to trading on aim
the company will take proper steps to ensure compliance by 
the directors and applicable employees with the terms of the 
share dealing code and the relevant provisions of the aim rules 
including rule 21  ptsg annual report and accounts 2014
19
strategic report
corporate governance 
financial statements
information meetings and attendance
the board met regularly in 2014 and has a full programme 
of board meetings planned for 2015 the board receives a 
comprehensive pack and has a clearly defined agenda which 
covers all areas of the business the pack provides a full trading 
analysis against budget and includes detailed financial data and 
analysis
the company has external advisers on which it can call for expert 
advice on particular areas
prior to listing the executive directors received a briefing from 
n1 singer on their duties and responsibilities as directors of a 
publicly quoted company
board evaluation
given that the majority of directors were only appointed in the 
months preceding the listing in february 2015 the board believes 
that a meaningful evaluation of the board can only take place 
after it has been working together for a reasonable time it is 
anticipated that the board will in the future review its performance 
and that of its committees a nonexecutive director will carry out 
formal individual performance reviews
control procedures
the board approves the annual budget each year this process 
allows the board to identify key performance targets and risks 
expected during the upcoming year the board also considers 
the agreed budget when reviewing trading updates and 
considering expenditures throughout the year progress against 
budget is monitored via monthly reporting of actual financial 
performance against budget and prior year actual results
the group has clear authority limits deriving from the list of 
matters reserved for decision by the board including capital 
expenditure approval procedures
there is no internal audit function due to the size of the group 
and the close involvement of senior management over the 
group’s accounting systems however this will be reviewed 
annually by the audit committee
relations with shareholders
the board recognises and understands that it has a fiduciary 
responsibility to the shareholders the chairman’s statement and 
chief executive’s review include detailed analysis of the group’s 
performance and future expectations the group’s website 
wwwptsgcouk allows shareholders access to information 
including contact details and the current share price as well as a 
link to “about us” which provides information on the business and 
the services offered by the divisions of the group
the chief executive is responsible for ongoing dialogue and 
relationships with shareholders alongside the finance director 
and chairman
additionally the annual general meeting provides a platform 
for the board to communicate with shareholders and the board 
welcomes the attendance and participation of all shareholders
by order of the board
adam coates
company secretary
27 april 2015 ptsg annual report and accounts 2014
20
corporate governance
directors’  
report
the directors present their report and the audited financial 
statements for the year ended 31 december 2014
premier technical services group plc “the company” is a  
public limited company incorporated and domiciled in the  
united kingdom and under the companies act 2006
the address of the company’s registered office is 13 flemming 
court whistler drive castleford wf10 5hw
the company was listed on aim part of the london stock 
exchange on 11 february 2015
business review and development
further information on the activities of the business the group 
strategy and an indication of the outlook for the business are 
presented in the chairman’s statement and chief executive 
officer’s review
 
financial results
details of the group’s financial results are set out in the 
consolidated statement of comprehensive income other 
primary statements and in the notes to the consolidated 
financial statements on pages 24 to 46
dividends
following admission the board has adopted a progressive 
dividend policy that will take account of the longterm earnings 
trend of the group the availability of cash and distributable 
reserves and allow the group to maintain a dividend cover of four 
times details of dividends paid in the year are given in note 24 of 
the consolidated financial statements
going concern
after completing a full review the directors have a reasonable 
expectation that the group has adequate resources to fund 
its operations for the foreseeable future for this reason they 
continue to adopt the going concern basis in preparing the 
financial statements
directors
the directors who served on the board and on board 
committees during the year are set out on page 16 mark 
watford was appointed as a director on 15 september 2014 
roger teasdale was appointed as a director on 10 february  
2015 and alan howarth and roger mcdowell were appointed  
as directors on 11 february 2015
under the articles of association of the company one third of the 
directors are subject to retirement by rotation at the forthcoming 
annual general meeting notice of which accompanies this 
report and accounts mark watford roger teasdale alan 
howarth and roger mcdowell will seek reelection given they 
were appointed since the last annual general meeting in relation 
to the reelections of each of the directors the board is satisfied 
that each of these directors continues to be effective and to 
demonstrate commitment to the company
31 december 2014 31 december 2013
number of 
shares
 of issued 
share capital
number of 
shares
 of issued 
share capital
john foley 270000 35 270000 35
paul teasdale 270000 35 270000 35
mark watford – – na na
none of the directors had any interests in the share capital of 
subsidiaries apart from paul teasdale who holds one share in 
ptsg access and safety ltd 
substantial shareholdings and share capital
the company’s share capital during the year consisted of 
771428 ordinary shares of £1 each 3 a ordinary shares of £1 
each 3 b ordinary shares of £1 each and 3 c ordinary shares 
of £1 each prior to listing the ordinary shares were split into 
77142800 ordinary shares of 1 pence each and the a ordinary 
b ordinary and c ordinary shares were cancelled
as at 24 april 2015 being the latest practicable date prior to the 
publication of this document the company has been advised of 
the following shareholdings of 3 or more in the issued share 
capital of premier technical services group plc
number of 
shares
 of issued 
shares
john foley 25076923 289
paul teasdale 25076923 289
hawk investment holdings ltd 21219723 245
slater investments ltd 3365384 39
on 11 february 2015 roger teasdale roger mcdowell and 
mark watford purchased 269827 269828 and 57692 shares 
respectively representing 031 031 and 007 of the new 
issued share capital
payment of suppliers
it is the group’s policy to pay suppliers in accordance with the 
terms and conditions agreed in advance providing all trading 
terms and conditions have been met all payments are made in 
the ordinary course of business and the group expects to pay all 
supplier debts as they become due
research and development
during the year the group incurred £01m 2013 £01m of 
expenditure on research activity ptsg annual report and accounts 2014
21
strategic report
corporate governance 
financial statements
financial risk management
due to the nature of the financial instruments used by the group 
comprising bank balances trade creditors trade debtors and finance 
lease agreements there is no exposure to price risk the liquidity risk 
on the above areas is regularly monitored by the directors
the group monitors credit risk closely and considers that its 
current policies meet its objectives of managing exposure to the 
risk the group has no significant concentration of credit risk
employment policy
it is the policy of the group to operate a fair employment policy no 
employee or job applicant is less favourably treated than another 
on the grounds of their sex sexual orientation age marital status 
religion race nationality ethnic or national origin colour or disability 
and all appointments and promotions are determined solely on 
merit the directors encourage employees to be aware of all issues 
affecting the group and issues a quarterly newsletter to all employees 
informing them of all current developments within the business
environment
the group adheres to all environmental regulations and has 
where possible utilised environmentalsustaining policies such  
as recycling and waste reduction
post balance sheet events
on 11 february 2015 the company was admitted to aim and 
£5000000 was raised before expenses for the company  
see note 29
annual general meeting
the company’s annual general meeting will be held at 
13 flemming court whistler drive castleford wf10 5hw on 
29 june 2015 details of the resolutions to be proposed are set out 
in a separate notice of meeting which accompanies this report
independent auditor
a resolution to reappoint pricewaterhousecoopers llp will be 
proposed at the annual general meeting
statement of directors’ responsibilities 
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare financial statements 
for each financial year under that law the directors have prepared 
the group financial statements in accordance with international 
financial reporting standards ifrss as adopted by the european 
union and the parent company financial statements in accordance 
with united kingdom generally accepted accounting practice 
united kingdom accounting standards and applicable law 
under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and the company and of the 
profit or loss of the group for that period in preparing these financial 
statements the directors are required to
• select suitable accounting policies and then apply them 
consistently
• make judgements and accounting estimates that are 
reasonable and prudent
• state whether ifrss as adopted by the european union and 
applicable uk accounting standards have been followed 
subject to any material departures disclosed and explained in 
the group and parent company financial statements respectively
• prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the group will 
continue in business
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the group’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the group and enable them to ensure that 
the financial statements comply with the companies act 2006 
they are also responsible for safeguarding the assets of the 
company and the group and hence for taking reasonable steps 
for the prevention and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity 
of the company’s website legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions
provision of information to auditor
each of the persons who is a director at the date of approval of this 
report confirm that there is no relevant audit information of which 
the company’s auditors are unaware each director has taken the 
steps that he ought to have taken as a director in order to make 
himself aware of any relevant audit information and to establish 
that the company’s auditors are aware of that information 
directors’ indemnities 
as permitted by the articles of association the directors have 
the benefit of an indemnity which is a qualifying third party 
indemnity provision as defined by section 234 of the companies 
act 2006 the indemnity was in force throughout the last financial 
year and is currently in force the company also purchased and 
maintained throughout the financial year directors’ and officers’ 
liability insurance in respect of itself and its directors
by order of the board
adam coates
company secretary
27 april 2015 ptsg annual report and accounts 2014
22
financial statements
report on the group financial statements
our opinion
in our opinion premier technical services group plc’s group financial statements the “financial statements”
• give a true and fair view of the state of the group’s affairs as at 31 december 2014 and of its profit and cash flows for the year then 
ended
• have been properly prepared in accordance with international financial reporting standards “ifrss” as adopted by the european 
union and
• have been prepared in accordance with the requirements of the companies act 2006
what we have audited
premier technical services group plc’s financial statements comprise
• the consolidated balance sheet as at 31 december 2014
• the consolidated statement of comprehensive income for the year then ended
• the consolidated cash flow statement for the year then ended
• the consolidated statement of changes in equity for the year then ended and
• the notes to the financial statements which include a summary of significant accounting policies and other explanatory information
the financial reporting framework that has been applied in the preparation of the financial statements is applicable law and ifrss as 
adopted by the european union
in applying the financial reporting framework the directors have made a number of subjective judgements for example in respect of 
significant accounting estimates in making such estimates they have made assumptions and considered future events
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements
other matters on which we are required to report by exception
adequacy of information and explanations received
under the companies act 2006 we are required to report to you if in our opinion we have not received all the information and 
explanations we require for our audit we have no exceptions to report arising from this responsibility 
directors’ remuneration
under the companies act 2006 we are required to report to you if in our opinion certain disclosures of directors’ remuneration 
specified by law are not made we have no exceptions to report arising from this responsibility 
responsibilities for the financial statements and the audit
our responsibilities and those of the directors
as explained more fully in the statement of directors’ responsibilities set out on page 21 the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view
our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and international 
standards on auditing uk and ireland “isas uk  ireland” those standards require us to comply with the auditing practices 
board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 
3 of part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume 
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing
independent auditors’ report 
to the members of premier technical services group plc strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
23
what an audit of financial statements involves
we conducted our audit in accordance with isas uk  ireland an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an assessment of 
• whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately 
disclosed 
• the reasonableness of significant accounting estimates made by the directors and 
• the overall presentation of the financial statements 
we primarily focus our work in these areas by assessing the directors’ judgements against available evidence forming our own 
judgements and evaluating the disclosures in the financial statements
we test and examine information using sampling and other auditing techniques to the extent we consider necessary to provide a 
reasonable basis for us to draw conclusions we obtain audit evidence through testing the effectiveness of controls substantive 
procedures or a combination of both 
in addition we read all the financial and nonfinancial information in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that is apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report
other matter
we have reported separately on the company financial statements of premier technical services group plc for the year ended 31 
december 2014
arif ahmad senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
leeds
27 april 2015 ptsg annual report and accounts 2014
24
financial statements
year ended 31 december 2014 year ended 31 december 2013
note
before 
adjusting 
items 
£
adjusting 
items 
note 6 
£
total 
£
before 
adjusting 
items
£
adjusting 
items 
note 6 
£
total 
£
revenue 4 18002687 – 18002687 13886853 – 13886853
cost of sales 7683423 – 7683423 5485852 – 5485852
gross profit 10319264 – 10319264 8401001 – 8401001
net operating costs 6 6311864 2529716 8841580 5241089 514773 5755862
total operating profit 4007400 2529716 1477684 3159912 514773 2645139
finance costs 7 305030 – 305030 130794 – 130794
finance income 8 – – – – – –
profit before taxation 3702370 2529716 1172654 3029118 514773 2514345
taxation 10 794752 154138 640614 665241 50919 614322
profit attributable to owners of 
the parent 2907618 2375578 532040 2363877 463854 1900023
total comprehensive income for 
the year attributable to owners of 
the parent 2907618 2375578 532040 2363877 463854 1900023
earnings per share pence
basic and diluted earnings per share 11 069 218
the notes on pages 28 to 46 are an integral part of these consolidated financial statements
consolidated statement of comprehensive income
for the year ended 31 december 2014 strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
25
attributable to owners of the parent
note
share 
capital 
£
capital 
redemption 
reserve 
£
retained 
earnings
 £
total 
£
noncontrolling 
interest 
£
total 
equity 
£
balance at 31 december 2012 900010 – 3207095 4107105 179 4107284
profit for the year – – 1900023 1900023 – 1900023
total comprehensive income – – 1900023 1900023 – 1900023
transactions with owners –
share buy back 128573 128573 4038572 4038572 – 4038572
ordinary dividends paid – – 754917 754917 – 754917
transactions with owners 128573 128573 4793489 4793489 – 4793489
balance at 31 december 2013 771437 128573 313629 1213639 179 1213818
profit for the year – – 532040 532040 – 532040
total comprehensive income – – 532040 532040 – 532040
transactions with owners
value of employee services – – 165418 165418 – 165418
ordinary dividends paid 24 – – 790000 790000 – 790000
transactions with owners – – 624582 624582 – 624582
balance at 31 december 2014 771437 128573 221087 1121097 179 1121276
the notes on pages 28 to 46 are an integral part of these consolidated financial statements
consolidated statement of changes in equity ptsg annual report and accounts 2014
26
financial statements
note
2014 
£
2013 
£
assets
noncurrent assets
goodwill 12 3615748 3539257
intangible assets 12 – –
property plant and equipment 13 1340886 1075740
deferred tax asset 21 – 33408
total noncurrent assets 4956634 4648405
current assets
inventories 15 201560 145476
trade and other receivables 16 8060904 5417116
cash and cash equivalents 17 – 372917
total current assets 8262464 5935509
liabilities
current liabilities
trade and other payables 18 4408865 2650432
bank overdraft net of cash 17 1260845 –
finance leases 19 474529 369956
borrowings 19 1000000 1250000
deferred consideration 20 899440 100000
current tax liabilities 440282 400467
total current liabilities 8483961 4770855
net current liabilitiesassets 221497 1164654
noncurrent liabilities
borrowings 19 2750000 3750000
finance leases 19 357715 349241
deferred tax liability 21 6146 –
deferred consideration 20 500000 500000
total noncurrent liabilities 3613861 4599241
net assets 1121276 1213818
equity attributable to the owners of the parent
share capital 22 771437 771437
capital redemption reserve 23 128573 128573
retained earnings 23 221087 313629
1121097 1213639
noncontrolling interests 179 179
total equity 1121276 1213818
the consolidated financial statements on page 24 to 46 were approved by the board of directors on 27 april 2015 and were signed on 
its behalf by 
p w teasdale
chief executive officer
consolidated balance sheet
as at 31 december 2014 strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
27
note
2014 
£
2013 
£
cash flows from operating activities
profit after taxation 532040 1900023
adjustments for
income tax charge 10 640614 614322
depreciation 13 700813 596972
amortisation of intangible assets 12 – 29167
profit on disposal of property plant and equipment 9 128250 136625
finance costs 7 305030 130794
share based payments 14 165418 –
2215665 3134653
changes in working capital
decreaseincrease in inventories 56084 30167
increasedecrease in trade and other receivables 1593043 1569487
decrease in creditors due to deferred remuneration – –
increase in trade and other payables 2069034 302641
cash generated from operations 2635572 1837640
interest paid 305030 130794
interest received – –
tax paid 561245 872178
net cash inflow from operating activities 1769297 834668
cash flows from investing activities
acquisition of businesses 350000 788776
purchase of property plant and equipment 346536 348995
purchase of intangible assets – –
payment of deferred consideration 327540 60625
net proceeds from sale of property plant and equipment 128250 264616
net cash outflow from investing activities 895826 933780
cash flows from financing activities
proceeds from borrowings – 5000000
repayment of bank borrowings 1250000 –
capital element of finance lease payments 467233 376204
purchase of own shares – 4038573
dividends paid 790000 754917
net cash outflow from financing activities 2507233 169694
net decrease in cash and cash equivalents 1633762 268806
cash and cash equivalents at 1 january 372917 641723
cash and cash equivalents at 31 december 17 1260845 372917
the notes on pages 28 to 46 are an integral part of these consolidated financial statements
consolidated cash flow statement 
for the year ended 31 december 2014 ptsg annual report and accounts 2014
28
financial statements
notes to the consolidated financial statements
1 general information 
premier technical services group plc the “company” is a company incorporated and domiciled in the uk the address of the 
registered office is 13 flemming court whistler drive castleford wf10 5hw registered company number is 06005074 the 
company and its subsidiaries’ together referred to as “the group” is a niche specialist service provider whose principal activities are 
the maintenance inspection testing repair and installation of permanent façade access equipment fall arrest systems and lightning 
protection systems together with fixed wire and portable appliance testing and high level cleaning 
2 accounting policies 
a basis of preparation
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
the first consolidated financial statements which were prepared under ifrs as adopted by the european union are the historical 
financial information included within the aim admission document a copy of these financial statements can be obtained from the 
group’s website wwwptsgcouk the date of transition to ifrs was 1 january 2011 and disclosures concerning the transition from 
uk gaap to ifrs are detailed in note 30 of the aim admission document therefore the consolidated financial statements for the 
year ended 31 december 2014 do not constitute the first ifrs financial statements of the group and accordingly no associated 
disclosures are provided
these consolidated financial statements have been prepared under the historical cost convention and on a going concern basis
the principal accounting policies adopted in the preparation of the consolidated financial information are set out below the policies 
have been consistently applied to all the years presented unless otherwise stated 
b going concern 
this consolidated financial information relating to the group has been prepared on the going concern basis
after making appropriate enquiries the directors have a reasonable expectation that the group has adequate resources to continue in 
operational existence for the foreseeable future and for at least one year from the date of signing these financial statements for these 
reasons they continue to adopt the going concern basis in preparing the group’s financial statements 
the cash flow projections are the sole responsibility of the directors based upon their present plans expectations and intentions in 
this context the directors have prepared and considered cash flow projections for the group for a period extending one year from the 
date of approval of these financial statements based on these cash flows and having regard to the provision of the debt facility as 
described in note 19 to these financial statements the directors are satisfied that the group is able to meet its liabilities as and when 
they fall due for the foreseeable future and for a minimum period of 12 months from the date of signing these financial statements
c new standards amendments and interpretations 
standards amendments and interpretations adopted by the group
the accounting policies adopted in the presentation of the consolidated financial statements reflect the adoption of the following new 
standards as of 1 january 2014
ifrs 10 ‘consolidated financial statements’ effective from periods beginning on or after 1 january 2014 this standard builds on 
existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the 
consolidated financial statements the standard provides additional guidance to assist in determining control where this is difficult to 
assess this standard is not expected to have a material impact on the group’s consolidated financial information
ifrs 11 ‘joint arrangements’ effective from periods beginning on or after 1 july 2013 reduces the types of joint arrangements to two 
joint operations and joint ventures the existing policy choice of proportionate consolidation for jointly controlled entities has also been 
eliminated equity accounting is mandatory for participants in joint ventures
ifrs 12 ‘disclosure of interests in other entities’ effective from periods beginning on or after 1 january 2013 sets out the disclosure 
requirements in the financial statements in respect of ifrs 10 and ifrs 11 the key additional disclosure above those already required 
under existing standards is that additional information is required on the nature risks and financial effects of the company’s interests 
in other entities further disclosure is required about the significant judgements and assumptions made in determining the 
classification of the investments  strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
29
2 accounting policies continued
new standards amendments and interpretations not yet adopted
a number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 
january 2014 and have not been applied in preparing these consolidated financial statements none of these is expected to have a 
significant effect on the consolidated financial statements of the group except the following set out below
ifrs 15 ‘revenue from contracts with customers’ deals with revenue recognition and establishes principles for reporting useful 
information to users of financial statements about the nature amount timing and uncertainty of revenue and cash flows arising from 
an entity’s contracts with customers revenue is recognised when a customer obtains control of a good or service and thus has the 
ability to direct the use and obtain the benefits from the good or service the standard replaces ias 18 ‘revenue’ and ias 11 
‘construction contracts’ and related interpretations the standard is effective for annual periods beginning on or after 1 january 2017 
and early application is permitted subject to eu endorsement the group is assessing the impact of ifrs 15 there are no other ifrs 
or ifric interpretations that are not yet effective that would be expected to have a material impact on the group
d basis of consolidation
subsidiaries 
subsidiaries are all entities over which the group has control control exists when the group is exposed to or has rights to variable 
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity the financial 
information of subsidiaries is included in the consolidated financial statements from the date on which control transferred to the group 
until the date that control ceases 
transactions eliminated on consolidation 
intragroup balances and any gains and losses or income and expenses arising from intragroup transactions are eliminated in 
preparing the consolidated financial statements 
e property plant and equipment 
owned assets 
items of property plant and equipment are stated at cost or deemed cost less accumulated depreciation and impairment losses cost 
includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended 
use when parts of an item of property plant and equipment have different useful lives those components are accounted for as 
separate items of property plant and equipment 
subsequent costs are included in the asset’s carrying amount or recognised as a separate asset as appropriate only when it is probable 
that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably
gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income 
statement
leased assets 
leases under which the group assumes substantially all the risks and rewards of ownership of an asset are classified as finance 
leases property plant and equipment acquired under finance leases is recorded at fair value or if lower the present value of minimum 
lease payments at inception of the lease less depreciation and any impairment
each lease payment is allocated between the liability and finance charges the corresponding rental obligations net of finance 
charges are included in the other longterm payables the interest element of the finance cost is charged to the income statement on 
a straightline basis the property plant and equipment under finance leases is depreciated over the shorter of the useful life of the 
asset and lease term
depreciation 
depreciation is charged to profit or loss on a straightline basis over the estimated useful lives of each part of an item of property plant 
and equipment the property plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of 
the asset and the lease term freehold land is not depreciated the estimated useful lives are as follows 
• leasehold improvements  – depreciated over term of lease
• fixture and fittings  – 25 on cost
• motor vehicles   – 33 on cost
• equipment   – 25–33 on cost
• plant and machinery  – 15–50 on cost
the residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date ptsg annual report and accounts 2014
30
financial statements
2 accounting policies continued
f inventories
inventories are stated at the lower of cost and net realisable value where necessary provision is made for obsolete slow moving and 
defective stocks cost comprises the purchase price of goods and other directly attributable costs incurred in bringing the product to 
its present location and condition net realisable value is the estimated selling price reduced by all costs of completion marketing 
selling and distribution
g intangible assets 
goodwill 
goodwill arising on acquisitions comprises the excess of the fair value of the consideration for investments in subsidiary undertakings 
over the fair value of the net identifiable assets acquired at the date of acquisition goodwill arising on acquisitions of subsidiaries is 
included in intangible assets
goodwill is not amortised but is tested annually for impairment and carried at cost less accumulated impairment losses gains and 
losses on the disposals of an entity include the carrying amount of goodwill relating to the entity sold
goodwill is allocated to cashgenerating units for the purpose of impairment testing each of those cashgenerating units represents 
the lowest level within the group at which the associated level of goodwill is monitored for management purposes and are not larger 
than the operating segments determined in accordance with ifrs 8 “operating segments”
business combinations
from 1 january 2011 the group has applied ifrs 3 business combinations 2008 in accounting for business combinations 
business combinations are accounted for using the acquisition method as at the acquisition date which is the date on which control is 
transferred to the group 
for acquisitions on or after 1 january 2011 the group measures goodwill at the acquisition date as the fair value of the consideration 
transferred
any contingent consideration payable is recognised at fair value at the acquisition date if the contingent consideration is classified as 
equity it is not remeasured and settlement is accounted for within equity otherwise subsequent changes to the fair value of the 
contingent consideration are recognised in profit or loss
for acquisitions prior to 1 january 2011 goodwill represents the excess of the cost of the acquisition over the group’s interest in the 
recognised amounts generally fair value of the identifiable assets liabilities and contingent liabilities of the acquiree
h impairment of nonfinancial assets
assets not subject to amortisation are tested annually for impairment assets that are subject to amortisation are reviewed for 
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable an impairment 
loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount the recoverable amount is 
the higher of an asset’s fair value less costs to sell and value in use for the purposes of assessing impairment assets are grouped at 
the lowest levels for which there are separately identifiable cash flows cashgenerating units nonfinancial assets other than goodwill 
that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date
i financial assets 
classification
the group classifies its financial assets as loans and receivables management determines the classification of its financial assets at 
initial recognition
loans and receivables
loans and receivables are nonderivative financial assets with fixed or determinable payments that arise principally through the 
provision of services to customers they are initially recognised at fair value and are subsequently stated at amortised cost using the 
effective interest method they are included in current assets except for maturities greater than 12 months after the end of the 
reporting period loans and receivables comprise mainly cash and cash equivalents and trade and other receivables 
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
31
2 accounting policies continued
impairment of financial assets 
impairment provisions are recognised when there is objective evidence such as significant financial difficulties on the part of the 
counterparty or default or significant delay in payment that the group will be unable to collect all of the amounts due under the terms 
receivable the amount of such a provision being the difference between the net carrying amount and the present value of the future 
expected cash flows associated with the impaired receivable 
for trade receivables which are reported net such provisions are recorded in a separate provision account with the loss being 
recognised within other operating costs in the income statement on confirmation that the trade receivable will not be collectable the 
gross carrying value of the asset is written off against the associated provision 
j cash and cash equivalents 
cash and cash equivalents comprise cash balances bank overdrafts that are repayable on demand and form an integral part of the 
group’s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows 
cash and cash equivalents is reported at a net amount in the balance sheet as there is a legally enforceable right to offset the 
recognised amount
k trade and other payables 
trade and other payables are initially stated at fair value and subsequently measured at amortised cost
l borrowings
borrowings are recognised initially at fair value net of transaction costs incurred borrowings are subsequently carried at amortised 
cost any difference between the proceeds net of transaction costs and the redemption value is recognised in the income statement 
over the period of the borrowings
m provisions 
a provision is recognised in the balance sheet when the group has a present legal or constructive obligation as a result of a past 
event and it is probable that an outflow of economic benefits will be required to settle the obligation if the effect is material and 
provisions are determined by discounting the expected future cash flows at a pretax rate that reflects current market assessments of 
the time value of money and when appropriate the risks specific to the liability the increase in the provision due to passage of time is 
recognised in finance costs 
n share capital 
ordinary shares are classified as equity incremental costs directly attributable to the issue of new shares are shown in share premium 
as a deduction from the proceeds
o revenue 
revenue is measured at the fair value of the consideration received as receivable excluding value added tax and discount given 
derived from the provision of goods and services to customers during the period
a installation 
the group enters into contracts to design and install façade access equipment fall arrest systems and lightning protection systems 
revenue is recognised to the extent to which performance has taken place at the balance sheet date in accordance with the 
percentage completion method in the accounting period in which the services are rendered by reference to the stage of completion 
of the contract at the balance sheet date and assessed on the basis of the actual service provided as a proportion of the total service 
to be provided
b test inspection and repair 
the group maintains tests inspects and repairs façade access equipment fall arrest systems and lightning protection systems 
revenue is recognised on completion of the relevant work and the group has objective evidence that all criteria for acceptance have 
been satisfied
p leases
the costs associated with operating leases are taken to the income statement on an accruals basis over the period of the lease 
where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset the lease 
is treated as a “finance lease” the accounting policy for which is disclosed in e  ptsg annual report and accounts 2014
32
financial statements
2 accounting policies continued
q net finance costs 
finance costs
finance costs comprise interest payable on borrowings and financial leases
finance income
finance income comprises interest receivable on funds invested
r income tax 
income tax for the years presented comprises current and deferred tax income tax is recognised in profit or loss except to the extent 
that it relates to items recognised directly in equity in which case it is recognised in equity 
current tax is the expected tax payable on the taxable income for the year using tax rates enacted or substantially enacted at the 
balance sheet date and any adjustment to tax payable in respect of previous years 
deferred tax is provided using the balance sheet liability method providing for temporary differences between the carrying amounts of 
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes 
the following temporary differences are not provided for the initial recognition of goodwill the initial recognition of other assets or 
liabilities that affect neither accounting nor taxable profit nor differences relating to investments in subsidiaries to the extent that they 
are unlikely to reverse in the foreseeable future the amount of deferred tax provided is based on the expected manner of realisation or 
settlement of the carrying amount of assets and liabilities using tax rates enacted or substantially enacted at the balance sheet date 
a deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the 
asset can be utilised deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be 
realised 
deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current 
tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on 
either the taxable entity or different taxable entities where there is an intention to settle the balances on a net basis
 
deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates except for deferred 
income tax liability where the timing of the reversal of the temporary difference is controlled by the group and it is probable that the 
temporary difference will not reverse in the foreseeable future
additional income taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related 
dividend 
s segment reporting 
operating segments are reported in a manner consistent with the internal reporting to the board of directors which has been identified 
as the chief operating decision maker the board of directors consists of the executive directors and the nonexecutive directors 
t employee benefits pension obligations 
the group operates a defined contribution plan a defined contribution plan is a pension plan under which the group pays fixed 
contributions into a separate entity the group has no legal or constructive obligations to pay further contributions if the fund does not 
hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods 
the group has no further payment obligations once the contributions have been paid the contributions are recognised as employee 
benefit expense when they are due prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in 
the future payments is available
u adjusting items
adjusting items are disclosed separately in the financial statements where it is necessary to do so to provide clearer understanding of 
the underlying financial performance of the group they are material items of income or expense that have been shown separately due 
to the significance of their nature or amount
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
33
3 critical accounting judgements and estimates 
the preparation of the group’s financial statements under ifrs requires the directors to make estimates and assumptions that affect 
the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities estimates and judgements are 
continually evaluated and are based on historical experience and other factors including expectations of future events that are believed 
to be reasonable under the circumstances actual results may differ from these estimates 
the directors consider that the following estimates and judgements are likely to have the most significant effect on the amounts 
recognised in the consolidated financial statements 
business combinations
on acquisition the company calculates the fair value of the net assets acquired the assessment of assets is necessarily judgemental 
and therefore will directly impact on the value of goodwill carried on the balance sheet goodwill is tested annually for impairment 
based on the cash flows of the income generating unit to which it relates judgement is applied to assessing the future revenues to be 
achieved from an acquisition and the appropriate discount rate these estimates affect whether an impairment of goodwill should be 
recognised further disclosures in respect of the impairment of goodwill are provided in note 12
revenue recognition
certain of the group’s installation contracts have a term of several months the directors assess the timing of the revenue according 
to the extent to which performance has taken place as such an element of judgement is required when assessing the stage of 
completion at a period end
trade receivables
trade receivables are continually reviewed for impairment and provided for where necessary the directors assess the requirement for 
any provision based on the age of the debt compared to agreed terms recent history of default and current economic climate as 
such there is an element of judgement required in estimating the probable losses inherent in the trade receivables
deferred consideration 
amounts payable in respect of acquisitions can depend in part upon the achievement of a number of financial and nonfinancial 
performance measures specified in the purchase agreements the directors estimate the amounts payable by assessing amongst 
other things the performance of the acquired businesses since acquisition against the measures specified in the purchase 
agreements as such an element of judgement is required in determining whether the performance measures will be achieved 
4 segmental reporting 
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 organise the group around products and services and 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 ptsg annual report and accounts 2014
34
financial statements
4 segmental reporting continued
2014
access  
and safety 
£
electrical 
services 
£
high level 
cleaning 
£
group 
£
total 
£
revenue
total revenue 9585682 6583257 1833748 – 18002687
total revenue from external customers 9585682 6583257 1833748 – 18002687
operating profit before adjusting items 1738058 1876214 415422 22294 4007400
rebranding – 500 – – 500
restructuring costs 255713 36816 28805 – 321334
ipo costs 516740 – – – 516740
head office rebuild costs 530224 – – – 530224
share options granted to directors and employees 165418 – – – 165418
contingent payments in relations to acquisitions – 527500 468000 – 995500
segment operating profit 269963 1311398 81383 22294 1477684
net finance cost – – – 305030 305030
profit before taxation 269963 1311398 81383 327324 1172654
other segmental items
segment assets 5392293 3027413 1535246 3264146 13219098
segment liabilities 4223120 2483865 1805558 3585279 12097 822
capital expenditure 431090 435617 68856 – 935563
depreciation 393491 292868 14454 – 700813
segmental operating profit
the reconciliation of adjusted ebitda to statutory operating profit is shown below
access  
and safety 
£
electrical 
services 
£
high level 
cleaning 
£
group 
£
total 
£
adjusted ebitda 2131549 2169082 429876 22294 4708213
depreciation 393491 292868 14454 – 700813
operating profit before adjusting items 1738058 1876214 415422 22294 4007400
rebranding – 500 – – 500
restructuring costs 255713 36816 28805 – 321334
ipo costs 516740 – – – 516740
head office rebuild costs 530224 – – – 530224
share options granted to directors and employees 165418 – – – 165418
contingent payments in relation to acquisitions – 527500 468000 – 995500
statutory operating profit 269963 1311398 81383 22294 1477684
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
35
4 segmental reporting continued
2013
access 
and safety
 £
electrical 
services 
£
group 
£
total 
£
revenue 9728660 4158193 – 13886853
total revenue
total revenue from external customers 9728660 4158193 – 13886853
operating profit before adjusting items 1953646 1206266 – 3159912
restructuring and rebranding costs 212693 12288 – 224981
amortisation of intangible assets 29167 – – 29167
contingent payments in relation to acquisitions – 260625 – 260625
segment operating profit 1711786 933353 – 2645139
net finance cost – – 130794 130794
profit before taxation 1711786 933353 130794 2514345
other segmental items
segment assets 6538159 2971561 1074194 10583914
segment liabilities 6243499 2899188 227409 9370096
capital expenditure 455747 351732 – 807479
depreciation 409801 187171 – 596972
segmental operating profit
the reconciliation of adjusted ebitda to statutory operating profit is shown below
access 
and safety 
£
electrical 
services
£
total 
£
adjusted ebitda 2363447 1393437 3756884
depreciation 409801 187171 596972
operating profit before adjusting items 1953646 1206266 3159912
restructuring costs and rebranding costs 212693 12288 224981
amortisation of intangible assets 29167 – 29167
contingent payments in relation to acquisitions – 260625 260625
statutory operating profit 1711786 933353 2645139 ptsg annual report and accounts 2014
36
financial statements
5 employees and directors 
a staff costs for the group during the year 
2014 
£
2013 
£
wages and salaries 6250722 4553989
defined contribution pension cost note 5d 20049 12987
share options granted to directors and employees note 14 165418 –
social security costs 673145 492461
7109334 5059437
average monthly number of people including executive directors employed 
2014 
number
2013 
number
by reportable segment
access and safety 102 88
electrical services 84 54
high level cleaning 25 –
211 142
b key management
key management includes directors the compensation paid or payable to key management for employee services is shown below
 
2014
£
2013
£
aggregate emoluments 693354 640000
693354 640000
c directors’ emoluments
the following costs are paid by ptsg access and safety limited
2014
 £
2013
 £
aggregate emoluments 270873 232934
compensation for loss of office – 25000
270873 257934
directors aggregate emoluments
2014
 £
2013
 £
p w teasdale 124100 124056
j r foley 101579 101488
m i watford 45194 –
s r shipley – 32390
270873 257934
d retirement benefits 
the group offers membership of the ptsg group pension scheme to eligible employees the only pension arrangements operated by 
the group the scheme is a defined contribution scheme and the pensions cost in the year was £20049 2013 £12987 
6 net operating costs 
2014
 £
2013
 £
distribution costs 331162 288313
administration costs 8638668 5604174
other operating income 128250 136625
8841580 5755862
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
37
6 net operating costs continued 
the following adjusting items have been included in administration costs
2014
 £
2013
 £
amortisation of intangible assets – 29167
rebranding and refinancing costs 500 151340
restructuring and start up costs 321334 73641
ipo costs 516740 –
head office rebuild costs 530224 –
share options granted to directors and employees 165418 –
contingent payable in relation to acquisitions 995500 260625
2529716 514773
in both years the group undertook a rebranding and restructuring exercise costs relating to these one off items have been included 
as an adjusting item these costs have been charged to administrative expenses
on 11 february the company was admitted to aim certain costs relating to this have been charged in 2014
there was a partial collapse of the company’s head office the full cost of the rebuild is being pursued through an insurance claim 
the incident caused minimal disruption to the business
the contingent payable relates to cash payments to the vendors of the businesses acquired in accordance with the terms of each 
sale and purchase agreement and is based on the achievement of certain milestones contingent amounts payable in respect of 
acquisitions can depend in part upon the achievement of a number of financial and nonfinancial performance measures specified in 
the purchase agreements and in part subject to the continued employment of the vendor where payment is linked to the continued 
employment of the vendor the arrangement to pay these additional amounts is accounted for separately to the business combination 
as remuneration this benefit payable is charged to the consolidated statement of comprehensive income over the period in which the 
services are provided as an employment expense
7 finance costs 
2014
 £
2013
 £
interest costs
interest payable on borrowings 220291 66639
interest arising from finance leases 84739 64155
305030 130794
8 finance income 
2014
 £
2013
 £
interest income – –
9  profit before taxation – analysis by function
profit before taxation is stated after chargingcrediting
2014
 £
2013
 £
net operating costs
– distribution costs 331162 288313
– administrative costs 8638668 5604174
– other operating income 128250 136625
employment benefit expense 7109334 5059437
depreciation of property plant and equipment – leased 618855 518786
depreciation of property plant and equipment – owned 81958 78186
amortisation of intangible assets – 29167
profit on the sale of property plant and equipment 128250 136625
operating lease rentals
– land and building 173503 139150 ptsg annual report and accounts 2014
38
financial statements
9 profit before taxation – analysis by function continued
during the year the group obtained the following services from the company’s auditors
2014
 £
2013
 £
fees payable to company’s auditor and its associates for the audit of consolidated financial statements 9600 3000
fees payable to company’s auditor and its associates for other services 
– the audit of company’s subsidiaries 52400 18000
– other services 175000 –
– tax compliance 13000 11000
– tax advisory services – 15000
250000 47000
10 taxation 
analysis of charge in year
2014
 £
2013
 £
current tax on profits for the year 617115 606644
adjustments in respect of prior years 16365 3350
total current tax 600750 603294
origination and reversal of temporary differences 39864 11028
total deferred tax note 21 39864 11028
income tax charge 640614 614322
the tax charge for the year differs from the standard rate of corporation tax in the uk of 215 2013 2325 the differences are 
explained below 
2014
 £
2013
 £
profit on ordinary activities before tax 1172654 2514345
profit on ordinary activities multiplied by the rate of corporation tax in the uk 252121 584585
effects of
other expenses not deductible 400903 41320
capital allowances less thanin excess of depreciation 9591 2759
income not assessable 27564 26062
other adjustments 41110 44197
utilisation of tax losses – 23609
prior year adjustment 16365 3350
total taxation charge 640614 614322
factors affecting current and future tax charges
the finance act 2013 which provides for a reduction in the main rate of uk corporation tax to 21 effective from 1 april 2014 and 
20 from 1 april 2015 was enacted on 17 july 2013 as this legislation was substantively enacted prior to the balance sheet date the 
closing deferred tax asset has been valued at 20 at 31 december 2014
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
39
11 earnings per share 
conditional upon and with effect immediately prior to the placing and admission each existing ordinary share in the company was 
converted into 100 ordinary shares pursuant to the capital reorganisation described in note 22 the issued ordinary share capital of 
the company immediately prior to the placing and admission is 77142800 ordinary shares of one penny each 
the calculation of basic and diluted earnings per ordinary share is based on profit for the year attributable to owners of the parent and 
on 77142800 ordinary shares in issue immediately prior to the placing and admission 
the calculation of basic earnings per share for the year ended 31 december 2014 was based on the profit attributable to ordinary 
shareholders of £532040 year ended 31 december 2013 £1900023
2014
 £
2013
 £
profit for the year attributable to owners of the parent 532040 1900023
weighted average number of ordinary shares in issue for the basic earnings per share 77 142800 87 260400
basic and diluted earnings per share in pence per share 069 218
the calculation of adjusted earnings per share for the year ended 31 december 2014 was based on the profit before adjusting items  
of £2907618 year ended 31 december 2013 £2363877
2014
 £
2013
 £
adjusted earnings 2907618 2363877
weighted average number of shares 77 142800 87 260400
earnings per share pence 377 271
12 intangible assets 
goodwill 
£
licence 
£
total 
£
cost 
at 31 december 2012 2650839  50000  2700839 
additions 1152475 –  1152475
disposals – 50000 50000
at 31 december 2013 3803314  –  3803314 
additions 76491 – 76491
disposals – – –
at 31 december 2014 3879805 – 3879805
accumulated amortisation  
at 31 december 2012 264057  20833 284890 
charge for the year – 29167  29167 
on disposals – 50000 50000
at 31 december 2013 264057 – 264057 
charge for the year – – – 
on disposals – – –
at 31 december 2014 264057 – 264057
net book amount   
at 31 december 2014 3615748 – 3615748
at 31 december 2013 3539257  –  3539257 
all amortisation charges have been treated as an administrative expense in the income statement 
goodwill acquired in a business combination is allocated to cash generating units cgus and is tested for impairment on an annual 
basis by comparing the carrying amount against the discounted cash flow projections of the cgu cgus are not larger than the 
operating segments of the group ptsg annual report and accounts 2014
40
financial statements
12 intangible assets continued
management reviews the business performance based on the type of business goodwill is monitored by management at the 
operating segment level the following is a summary of the goodwill allocation for each operating segment
2014
 £
2013
 £
access and safety 1802070 1802070 
electrical services 1737187 1737 187
high level cleaning 76491 –
total goodwill 3615748 3539257 
the recoverable amount has been determined based on the value in use calculations covering approved budgets and forecasts for 
the next financial year followed by an extrapolation of expected cash flows the key assumptions in the value in use calculations were 
as follows
• pre tax discount rate 12
• sales growth was based on internal forecasts and a terminal growth rate of 2
• gross margins were projected based on recent trends
the directors believe that there are no reasonably possible changes to a key assumption which would give rise to an impairment charge
13 property plant and equipment
leasehold 
£
motor vehicles 
£
plant and 
machinery 
£
fixtures fittings 
and equipment 
£
total 
£
cost
at 31 december 2012 – 1357223 98683 361758 1817664
additions 9851 765385 32957 49091 857284
disposals – 531698 – 1502 533200
at 31 december 2013 9851 1590910 131640 409347 2141748
acquisitions – 35195 – 3950 39145
additions – 746081 55808 124925 926814
disposals – 340501 – – 340501
at 31 december 2014 9851 2031685 187448 538222 2767206
accumulated depreciation
at 31 december 2012 – 554952 64483 254506 873941
charge for the year 157 518786 16802 61227 596972
transfers – – 91 91 –
on disposals – 403403 – 1502 404905
at 31 december 2013 157 670335 81376 314140 1066008
charge for the year 940 618855 25717 55301 700813
on disposals – 340501 – – 340501
at 31 december 2014 1097 948689 107093 369441 1426320
net book amount
at 31 december 2014 8754 1082996 80355 168781 1340886
at 31 december 2013 9694 920575 50264 95207 1075740
finance lease commitments
included in motor vehicles are assets held under finance leases with a net book value of £1082996 2013 £920575 and 
accumulated depreciation of £948689 2013 £670335
14 sharebased payment
as at 31 december 2014 there are options outstanding over up to 10000 e shares the e shares have limited rights to a return of 
capital but a right to share in the proceeds of sale upon the sale of the entire issued share capital of ptsg or if a general offer is 
successfully made for the ordinary shares in the capital of ptsg within a 10 year period from 2 june 2014 in such an event the 
holders of the e shares are entitled in aggregate to receive a sum equal to the profit on ordinary activities before taxation of ptsg 
access and safety ltd as shown in the statutory accounts of ptsg access and safety ltd for the financial period ending prior to the 
date of sale subject to a limit of 10 of the proceeds of such a sale
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
41
14 sharebased payment continued
under the terms of his service agreement the company shall issue to roger teasdale for nil or nominal consideration additional 
equity calculated by reference to the then issued share capital of the company when the following milestone targets are met in any 
given financial year on the first occasion only
ebitda statutory accounts £8m £10m £12m £14m
25 25 25 25
the above have been considered in accordance with ifrs 2 however as the directors consider it unlikely that there will be a sale of 
the company within the relevant timeframe and the milestone targets are unlikely to be met in the foreseeable future there is no 
material charge to be reflected in the financial statements for the current year and no further disclosures have been made
in addition to the above under the terms of roger teasdale’s service agreement with the company he is entitled provided that he is 
still employed by the company on or after 16 november 2015 to require the transfer to him for nil consideration ownership of 5 in 
aggregate of the current issued share capital of the company being approximately 44 of the enlarged share capital paul teasdale 
john foley and hawk investments have undertaken to deliver such shares to him in proportion to their existing shareholdings for nil 
consideration
the directors have fair valued the equity instruments at the grant date being 16 november 2014 the date at which the parties have 
shared understanding of the terms and conditions of the arrangement the fair value of the option has been calculated based on the 
fair value of the shares at the grant date given that there are no performance conditions a service condition of one year and the 
exercise price of £nil
the fair value of the award is being expensed to the income statement over the vesting period on a straightline basis with the 
corresponding credit to equity as at 31 december 2014 the charge to the income statement was £165418
15 inventories 
2014
 £
2013
 £
finished goods 201560 145476
16 trade and other receivables 
2014
 £
2013
 £
amounts falling due within one year
trade receivables 6976593 4659479
less provision for impairment of trade receivables 152761 366638
trade receivables – net 6823832 4292841
other receivables 571986 604391
prepayments 665086 519884
8060904 5417116
trade and other receivables are all current and any fair value difference is not material trade receivables are considered past due 
once they have passed their contracted due date trade receivables are reviewed for impairment if they are past due beyond 90 days
the ageing of the group’s year end overdue receivables is as follows 
2014
 £
2013
 £
impaired
over 90 days 152761 366638
152761 366638
not impaired
less than 90 days 5120095 4082188
over 90 days 1703737 210653
6823832 4292841
balances not impaired over 90 days mainly relate to retention amounts that management consider to be recoverable ptsg annual report and accounts 2014
42
financial statements
16 trade and other receivables continued
movements on the group provision for impairment of trade receivables is as follows
2014
 £
2013
 £
at 1 january 366638 533482
provision for receivables impairment – –
receivables written off during the year as uncollectible 213877 38728
unused amounts reversed – 128116
at 31 december 152761 366638
the creation and release of provision for impaired receivables have been included in ‘administration expenses’ in the income statement
17 cash and cash equivalents
2014
 £
2013
 £
cash and cash equivalents 1828570 1294921
bank overdrafts 3089415 922004
1260845 372917
18 trade and other payables
2014
 £
2013
 £
trade payables 1382736 626984
other tax and social security payable 901648 602732
accruals and other payables 2124481 1420716
4408865 2650432
19 borrowings 
book value
2014
 £
2013
 £
noncurrent
bank borrowings 2750000 3750000
finance lease liabilities 357715 349241
total noncurrent 3107715 4099241 
current
bank borrowing 1000000 1250000
finance lease liabilities 474529 369956
total current 1474529  1619956 
4582244 5719197
the bank loan totalling £3750000 is repayable over a remaining four years the interest rate of the bank borrowings is libor plus 
450 and is paid in line with the quarterly repayment dates
the loan is subject to bank covenants covering debt service coverage interest cover and leverage covenants are tested quarterly 
on 31 march 30 june 30 september and 31 december
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
43
19 borrowings continued
the carrying amounts and fair value of the noncurrent borrowings are as follows
2014 2013
carrying 
amount
 £
fair value 
£
carrying 
amount 
£
fair value 
£
bank borrowings 2750000 2750000 3750000 3750000
finance lease liabilities 357715 357715 349241 349241
3107715 3107715 4099241 4099241 
the fair value of current and noncurrent borrowings equals their carrying amount as the impact of discounting is not significant 
borrowings have the following maturity profile
2014
 £
2013
 £
less than 12 months 1474529 1619956
1–5 years 3107715 4099241
4582244 5719197
20 deferred consideration
2014
 £
2013
 £
current 899440 100000
noncurrent 500000 500000
1399440 600000
deferred considerationcontingent amounts payable in respect of acquisitions can depend in part upon the achievement of a number 
of financial and nonfinancial performance measures specified in the purchase agreements and in part subject to the continued 
employment of the vendor where payment is linked to the continued employment of the vendor the arrangement to pay these 
additional amounts is accounted for separately to the business combination as remuneration and the benefit payable is built up over 
the period of service
21 deferred tax
accelerated 
capital 
allowances 
£
tax losses 
£
total 
£
as at 1 january 2013 31902 16157 48059 
chargecredit to income statement 5129 16157 11028
arising on acquisition 3623 – 3623 
change in tax rates – – –
as at 31 december 2013 33408 – 33408 
as at 1 january 2014 33408 – 33408
chargecredit to income statement 39864 – 39864 
arising on acquisition 310 – 310 
as at 31 december 2014 6146 – 6146
deferred tax is disclosed as a noncurrent liability in the consolidated balance sheet ptsg annual report and accounts 2014
44
financial statements
22 called up share capital 
2014
 £
2013
 £
allotted called up and fully paid
771428 ordinary shares of £1 each 771428 771428
3 ordinary a shares of £1 each 3 3
3 ordinary b shares of £1 each 3 3
3 ordinary c shares of £1 each 3 3
771437 771437
the holders of the a ordinary shares are not entitled to vote on a return of capital the holders of the a ordinary shares are only 
entitled to receive subscription price after each ordinary shareholder receives £10000000 per share the holders of the a ordinary 
shares are entitled to receive a dividend according to a resolution of the directors the a ordinary shares are not redeemable
the holders of the b ordinary shares are not entitled to vote on a return of capital the holders of the b ordinary shares are only 
entitled to receive subscription price after each ordinary shareholder receives £10000000 per share the holders of the b ordinary 
shares are entitled to receive a dividend according to a resolution of the directors the b ordinary shares are not redeemable
the holders of the c ordinary shares are not entitled to vote on a return of capital the holders of the c ordinary shares are only 
entitled to receive subscription price after each ordinary shareholder receives £10000000 per share the holders of the c ordinary 
shares are entitled to receive a dividend according to a resolution of the directors the c ordinary shares are not redeemable
on 22 january 2015 the company acquired the issued a b and c ordinary shares in the capital of the company at par and cancelled 
such shares
on 28 january 2015 the company’s share capital was restructured such that each existing ordinary share of £1 in the capital of the 
company was divided into 100 ordinary shares of one penny each
the issued ordinary share capital of the company as at the date of this document is 86758184 ordinary shares of one penny each 
all such shares are fully paid
23 reserves
the following describes the nature and purpose of each reserve within shareholders’ equity
retained earnings
cumulative net gains and losses recognised in the group income statement
capital redemption reserve
following the purchase of own shares during 2013 the nominal value of the shares purchased was transferred to a capital redemption 
reserve
24 dividends
in the year dividends of £220000 per a ordinary share were paid 2013 £220000 £43333 per b ordinary share 2013 £23889 and 
£nil per d ordinary share 2013 £23250
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
45
25 commitments and contingencies
a operating lease commitments 
the group holds property leases under noncancellable operating lease agreements the lease terms are between one and 15 years
the future aggregate minimum lease payments under noncancellable operating leases are as follows 
2014
 £
2013
 £
within 1 year 183750 174854
later than 1 year and less than 5 years 705469 608250
after 5 years 1409750 1375000
2298969 2158104
b contingencies
the company and its subsidiaries have given unlimited multilateral company guarantees on their respective bank facilities
26 financial instruments – risk management 
financial risk management
the group’s activities expose it to a variety of financial risks market risk credit risk and liquidity risk
risk management is carried out by the board of directors 
a market risk
i interest rate risk
the group’s interest rate risk arises from the group’s borrowings as disclosed in note 19 
the group has not entered into an interest rate swap to mitigate the variable interest rate risk
at 31 december 2014 if the libor denominated borrowings at that date had been 05 higherlower with all other variables held 
constant posttax profit for the year would have been £21250 2013 £6644 lowerhigher mainly as a result of higherlower interest 
expense on floating rate borrowings
b credit risk
the group monitor credit risk closely and consider that its current policies meet its objectives of managing exposure to risk the 
group has no significant concentration of credit risk management believe that there is no further credit risk provision required in 
excess of the provisions for doubtful receivables
c liquidity risk
liquidity risk is managed on a day to day basis facilities are agreed at appropriate levels having regard to the group’s forecast 
operating cash flows and future capital expenditures 
d capital risk management 
the aim of the group is to maintain sufficient funds to enable it to make suitable investments and incremental acquisitions whilst 
minimising recourse to bankers andor shareholders the group currently has overdraft facilities in place of £175m
all material cash amounts are deposited with financial institutions with high credit ratings
leverage is monitored in accordance with the requirements of the loan covenants following the loan which was taken out in 2013
27 business acquisitions 
on 1 july 2014 the trade and certain assets of acescott management services limited were purchased for a total cash consideration 
of £581694 this acquisition has been accounted for in the consolidated financial statements by the acquisition method of accounting
acescott undertakes high level cleaning and enables us to extend our customer services offering and provided our new and existing 
client base to further utilise ptsg as their niche specialist services provider
the turnover operating loss and adjusted operating profit of acescott for the period from the date of acquisition to 31 december 2014 
included in the consolidated financial statements was £1833748 £81383 and £415422 respectively ptsg annual report and accounts 2014
46
financial statements
27 business acquisitions continued
the table below explains the adjustments made to the book values of the major categories of assets and liabilities in arriving at fair values
book value 
£
fair value 
adjustment 
£
fair value 
at date of 
acquisition 
£
fixed assets
tangible assets 87539 48394 39145
current assets
trade debtors 1016482 – 1016482
prepayments 13311 – 13311
other debtors 20948 – 20948
total assets 1138280 48394 1089886
liabilities
trade creditors 532406 – 532406
other creditors 52277 – 52277
total liabilities 584683 – 584683
net assets 553597 48394 505203
cash consideration 350000
additional cash consideration 231694
goodwill 76491
the additional cash consideration is to be paid once the completion accounts have been finalised the final amount will depend upon 
the agreed net assets of the completion accounts
28 related party transactions 
key management compensation is given in note 5 
other related party transactions with the company are as follows 
dividends of £660000 2013 £660000 were paid to hallco 1766 limited and £130000 2013 £71667 to j r foley on the ordinary 
shares in the year ended 31 december 2014 p w teasdale is a director of hallco 1766 limited
rent of £166250 2013 £75000 was paid in the year to ensco 835 limited p w teasdale and j r foley are directors of ensco 835 
limited
no other transactions with related parties were undertaken such as are required to be disclosed
29 post balance sheet events
on 11 february 2015 the company was admitted to aim and £5000000 was raised before expenses for the company
in connection with the admission the share capital of the company was restructured as set out in note 22
by an instrument dated 5 february 2015 the company created warrants to subscribe at the placing price for up to 867581 new 
ordinary shares being one per cent of the enlarged share capital the warrants have been issued to n1 singer pursuant to the 
placing agreement the warrants are exercisable at any time or times in the period of five years from admission and thereafter shall 
lapse the exercise price is equal to the placing price per share if the company capitalises its reserves other than by way of shares 
paid up out of distributable reserves and used in lieu of a cash dividend during the period of the warrant or there is any subdivision 
or consolidation of ordinary shares or a reduction of capital during such period the number andor nominal value of ordinary shares 
the subject of the warrant will be adjusted so as to maintain the same relative subscription rights for so long as the warrants are 
outstanding the company has agreed inter alia not to vary or abrogate the rights attaching to the ordinary shares or to create any 
class of share which ranks for any purpose ahead of the ordinary shares
notes to the consolidated financial statements 
continued strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
47
report on the company financial statements
our opinion
in our opinion premier technical services group plc’s company financial statements the “financial statements”
• give a true and fair view of the state of the company’s affairs as at 31 december 2014
• have been properly prepared in accordance with united kingdom generally accepted accounting practice and
• have been prepared in accordance with the requirements of the companies act 2006
what we have audited
premier technical services group plc’s financial statements comprise
• the balance sheet as at 31 december 2014 and
• the notes to the financial statements which include a summary of significant accounting policies and other explanatory information
the financial reporting framework that has been applied in the preparation of the financial statements is applicable law and united 
kingdom accounting standards united kingdom generally accepted accounting practice
in applying the financial reporting framework the directors have made a number of subjective judgements for example in respect of 
significant accounting estimates in making such estimates they have made assumptions and considered future events
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the strategic report and the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements
other matters on which we are required to report by exception
adequacy of accounting records and information and explanations received
under the companies act 2006 we are required to report to you if in our opinion
• we have not received all the information and explanations we require for our audit or
• adequate accounting records have not been kept by the company or returns adequate for our audit have not been received from 
branches not visited by us or
• the financial statements are not in agreement with the accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report to you if in our opinion certain disclosures of directors’ remuneration 
specified by law are not made we have no exceptions to report arising from this responsibility 
responsibilities for the financial statements and the audit
our responsibilities and those of the directors
as explained more fully in the statement of directors’ responsibilities set out on page 21 the directors are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view
our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and international 
standards on auditing uk and ireland “isas uk  ireland” those standards require us to comply with the auditing practices 
board’s ethical standards for auditors
this report including the opinions has been prepared for and only for the company’s members as a body in accordance with chapter 
3 of part 16 of the companies act 2006 and for no other purpose we do not in giving these opinions accept or assume 
responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where 
expressly agreed by our prior consent in writing
independent auditors’ report 
to the members of premier technical services group plc ptsg annual report and accounts 2014
48
financial statements
what an audit of financial statements involves
we conducted our audit in accordance with isas uk  ireland an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes an assessment of 
• whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and 
adequately disclosed 
• the reasonableness of significant accounting estimates made by the directors and 
• the overall presentation of the financial statements 
we primarily focus our work in these areas by assessing the directors’ judgements against available evidence forming our own 
judgements and evaluating the disclosures in the financial statements
we test and examine information using sampling and other auditing techniques to the extent we consider necessary to provide a 
reasonable basis for us to draw conclusions we obtain audit evidence through testing the effectiveness of controls substantive 
procedures or a combination of both 
in addition we read all the financial and nonfinancial information in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that is apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing the audit if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report
other matter
we have reported separately on the group financial statements of premier technical services group plc for the year ended 
31 december 2014
arif ahmad senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
leeds
27 april 2015
independent auditors’ report continued
to the members of premier technical services group plc strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
49
note
2014
 £
2013 
£
fixed assets
investments 2 4304576 4493076
current assets
debtors 3 4803018 4340287 
creditors – amounts falling due within one year 4 4658185 2748860
net current assets 144833 1591427
total assets less current liabilities 4449409 6084503
creditors – amounts falling due after one year 5 3456875 5149383
net assets 992534 935120
capital and reserves
called up share capital 6 771437 771437
capital redemption reserve 128573 128573
profit and loss account 7 92524 35110
total shareholders’ funds 8 992534 935120
the financial statements on pages 49 to 52 were approved by the board of directors on 27 april 2015 and were signed on its behalf by
p w teasdale
chief executive officer
registered number 06005074
company balance sheet
as at 31 december 2014 ptsg annual report and accounts 2014
50
financial statements
notes to the financial statements
1 accounting policies
these financial statements are prepared on the going concern basis under the historical cost convention and in accordance with the 
companies act 2006 and applicable accounting standards in the united kingdom the principal accounting policies are set out below 
and have been applied consistently throughout the year
investments
investments are included at cost less amounts written off
2 investments
company total 
£
cost
at 1 january 2014 4493076
additions 211500
adjustment 400000
at 31 december 2014 4304576
net book value
at 31 december 2014 4304576
at 31 december 2013 4493076
the principal subsidiary undertakings at 31 december 2014 were
name nature of business shares held
ptsg access and safety ltd installation and maintenance of access and safety systems 100
ptsg electrical services ltd installation and maintenance of lightning protection systems 100
test strike uk ltd maintenance of lightning protection systems 100
ptsg electrical testing services limited holding company 100
ohmega testing services ltd portable appliance and fixed wire testing 100 
acescott specialist services ltd high level cleaning 100
§
§ held by a subsidiary undertaking
the directors consider that to list all subsidiary undertakings would lead to a statement of excessive length a full list of subsidiary 
undertakings will be annexed to the company’s next annual return
the directors have assessed the deferred consideration likely to be paid and have adjusted the investment value accordingly
the directors believe that the carrying value of the investments is supported by their underlying net assets
3 debtors
company
2014 
£
2013 
£
amounts owed by group undertakings 4680185 4203035
other debtors – 10
prepayments 122833 137242
4803018 4340287
amounts owed by group undertakings are unsecured interest free and payable on demand strategic report
corporate governance 
financial statements
ptsg annual report and accounts 2014
51
4 creditors – amounts falling due within one year
company
2014 
£
2013 
£
overdrafts 3089415 922004
bank loan 1000000 1250000
amounts owed to group undertakings 7159 –
other creditors 532940 537500
accruals 28671 39356
4658185 2748860
the bank loans and overdrafts are secured by an unlimited multilateral company guarantee given by this company and other 
members of the group to secure all liabilities of each other
amounts owed to group undertakings are unsecured interest free and payable on demand 
5 creditors – amounts falling due after one year
company
2014 
£
2013 
£
amounts owed to group undertakings – 8
bank loan 2750000 3750000
other creditors 706875 1399375
3456875 5149383
the bank loan totalling £3750000 is repayable over four years the first instalment of £250000 was paid in january 2014 and was 
followed by quarterly instalments of £250000 on 31 march 30 june 30 september and 31 december this loan carries interest at 
libor plus 45 
contingencies
an unlimited multilateral company guarantee given by this company and other members of the group to secure all liabilities of each 
other
6 called up share capital
2014 
£
2013 
£
allotted and fully paid
771428 ordinary shares of £1 each 771428 771428
3 ordinary a shares of £1 each 3 3
3 ordinary b shares of £1 each 3 3
3 ordinary c shares of £1 each 3 3
771437 771437
during 2013 the company purchased 128573 of its own shares at a cost of £4038572
7 profit and loss account
company 
£
balance as at 1 january 2014 35110
profit for the financial year 847414
equity dividends 790000
balance as at 31 december 2014 92524
the parent company has taken advantage of section 408 of the companies act 2006 and has not included its own profit and loss in 
these financial statements the parent company’s profit for the year was £847414 2013 £4828273 the audit fees in respect of the 
company was £2000 2013 £2000 directors’ remuneration and details on dividends are detailed in note 5 and 24 of the 
consolidated financial statement ptsg annual report and accounts 2014
52
financial statements
8 reconciliation of movements in shareholders’ funds
2014 
£
2013 
£
profit for the financial year 847414 4828273
share buy back – 4038572
equity dividends 790000 754917
net addition to shareholders’ funds 57414 34784
opening shareholders’ funds as at 1 january 935120 900336
closing shareholders’ funds as at 31 december 992534 935120
share based payments
as at 31 december 2014 there are options outstanding over up to 10000 e shares the e shares have limited rights to a return of 
capital but a right to share in the proceeds of sale upon the sale of the entire issued share capital of ptsg or if a general offer is 
successfully made for the ordinary shares in the capital of ptsg within a 10 year period from 2 june 2014 in such an event the 
holders of the e shares are entitled in aggregate to receive a sum equal to the profit on ordinary activities before taxation of ptsg 
access and safety ltd as shown in the statutory accounts of ptsg access and safety ltd for the financial period ending prior to the 
date of sale subject to a limit of 10 of the proceeds of such a sale
under the terms of his service agreement the company shall issue to roger teasdale for nil or nominal consideration additional 
equity calculated by reference to the then issued share capital of the company when the following milestone targets are met in any 
given financial year on the first occasion only
ebitda statutory accounts £8m £10m £12m £14m
25 25 25 25
the above have been considered in accordance with ifrs 2 however as the directors consider it unlikely that there will be a sale  
of the company within the relevant timeframe and the milestone targets are unlikely to be met in the foreseeable future there is no 
material charge to be reflected in the financial statements for the current year and no further disclosures have been made
in addition to the above under the terms of roger teasdale’s service agreement with the company he is entitled provided that he is 
still employed by the company on or after 16 november 2015 to require the transfer to him for nil consideration ownership of 5 in 
aggregate of the current issued share capital of the company being approximately 44 of the enlarged share capital paul teasdale 
john foley and hawk investments have undertaken to deliver such shares to him in proportion to their existing shareholdings for nil 
consideration
the directors have fair valued the equity instruments at the grant date being 16 november 2014 the date at which the parties have 
shared understanding of the terms and conditions of the arrangement the fair value of the option has been calculated based on the 
fair value of the shares at the grant date given that there are no performance conditions a service condition of one year and the 
exercise price of £nil
the fair value of the award is being expensed to the income statement over the vesting period on a straightline basis with the 
corresponding credit to equity as at 31 december 2014 the charge to the income statement was £165418 this has been borne  
by the subsidiary company ptsg access and safety limited
9 post balance sheet events
on 11 february 2015 the company was admitted to aim
notes to the financial statements continued company information
registered office
13 flemming court
whistler drive
castleford
west yorkshire
wf10 5hw
telephone  44 0 1977 668 771
fax  44 0 1977 668 772
registered number 06005074
website wwwptsgcouk
nominated adviser and broker
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london 
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bankers
hsbc
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registrars
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br3 4tu premier technical services group plc
head office 13–14 flemming court
whistler drive glasshoughton
castleford wf10 5hw
tel 44 0 1977 668 771
fax 44 0 1977 668 772
email infoptsgcouk
wwwptsgcouk
premier technical services group plc annual report 2014


Summary:
 ptsg annual report and accounts 2014
10
strategic report
chief executive’s 
review
“ ptsg enjoyed another fantastic year 
in 2014 as we continued our rapid 
growth since foundation in 2007 
 
it was a year structured with  
highprofile appointments  
headlinegrabbing contract  
wins and prestigious accolades”
paul teasdale 
chief executive officer
overview
in 2014 ptsg comprised four offerings 
access and safety electrical services 
high level cleaning and specialist training 
we expanded into high level cleaning and 
maintenance with the acquisition of the 
trade and assets of acescott management 
services limited “acescott” in july 2014 
acescott contributed £041m to adjusted 
operating profits in 2014 
topline performance has remained strong 
with turnover increasing to £180m 2013 
£139m and operating profits before 
adjusting items increasing by 27 to £40m 
2013 £32m driven by robust adjusted 
ebit margins which remained consistently 
high at 223 reflecting the specialist and 
skilled nature of our activities our strong 
focus on cost control and operating model 
while remaining competitive on pricing 
statutory profit before tax after adjusting 
items was £12m
we have also delivered strong organic 
growth across the group – most notably 
in electrical services where revenue grew 
by 58 and adjusted operating profits 
by 56 our niche specialist services 
are sold on a recurring basis under 
contract to a retained customer base 
we have continued our high client 
retention figure of over 85 on annual 
orders driven by the quality of service 
and our competitive pricing
market environment
demand for our services is underpinned  
by regulatory requirements around the 
installation maintenance and testing of 
access and safety systems lightning 
protection and electrical equipment as well 
as insurance compliance requirements 
and general repair and maintenance
many of our customers are streamlining 
their businesses through supplier 
rationalisation moving to single source 
supply which is benefiting the group  
and is expected to continue in the future  11
ptsg annual report and accounts 2014 strategic review
corporate governance 
financial statements
acquired in november 2013 and brought  
into line with the ptsg operating model  
test strike is already delivering beyond  
initial forecasts and expectations 
for the year ended 31 august 2013 test 
strike achieved turnover of £823k and 
generated an operating profit of £123k 
implementing ptsg’s operating policies  
and procedures together with back office 
support has enabled test strike to increase 
acquisition case study 2 – test strike
revenue
£13m
58
operating profits
£06m
376
its turnover in 2014 to £13m generating an 
operating profit of £586k
premanagement charge
 ptsg annual report and accounts 2014
12
strategic report
strategy
we aim to build our market share in  
each of our niche services to markets 
characterised by high regulation longterm 
growth drivers and nondiscretionary 
spend for customers
as the uk’s market leader in access and 
safety services and one of the industry’s 
leading lightning protection businesses  
we are well positioned to capitalise on our 
recent entry into the high level cleaning 
market with organic growth and cross 
selling opportunities
our major customers include the us air 
force marks  spencer plc royal bank  
of scotland plc unite sheffield hallam 
university network rail harrods motorola 
airbus morgan sindall willmott dixon 
carillion barclays land securities land 
rover and manchester united plc
our strategy is to generate significant 
shareholder value through organic growth 
including crossselling and complementary 
acquisitions just 5 of customers 
currently receive multiple lines of service 
with considerable scope to improve  
this and increase profitability 
while we are already a market leader in  
a number of our operations we still have  
a less than 10 share in our principal 
markets and there is significant scope  
for growth 
acquisitions 
ptsg has a track record of successfully 
integrating acquisitions in complementary 
areas of activity and driving improved 
operational and financial performance
we are committed to pursuing acquisition 
opportunities in existing and adjacent 
markets with a view to crossselling 
services and leveraging our client base  
we are attracted to opportunities in our 
core markets where ownermanagers  
are interested in playing a role in the 
enlarged business 
ptsg’s first acquisition national cradle 
maintenance limited was in 2007 and  
was funded by £09 million of equity from  
the founders since then we have made  
11 subsequent acquisitions at a total 
consideration of £72 million and our  
most recent acquisition acescott was 
completed in july 2014 
our inhouse acquisitions team considers  
a strong pipeline of opportunities including 
boltons to existing divisions and 
businesses with activities in new and 
adjacent sectors the board will consider 
acquisitions that allow the group to enter 
attractive new markets where we can 
leverage our operational and managerial 
framework expand existing operations 
geographically to increase our penetration 
of the uk market and grow operations  
in an existing market and geography 
leveraging economies of scale to improve 
margins 
we have a pipeline of acquisition 
opportunities which will carry us through 
2015 2016 and 2017 our first acquisition  
is planned for the second quarter of 2015
we already carry out training but only on  
a limited scale and we are confident that  
a training division will complement the 
group’s other activities over 2015 and 
2016 we intend to significantly expand the 
group’s specialist training activities by 
acquisition for instance certification is 
already an important part of the access 
and safety and electrical services 
divisions and the group also provides  
its own engineers with regular training to 
maintain their compliance with any changes 
to the inspection and testing regimes
divisional results 
we have achieved strong levels of organic 
growth by improving operational processes 
and efficiencies reducing costs being 
more competitive and establishing new 
partnerships and relationships 
over 2014 we spent £01m on software 
development to increase productivity 
efficiency and reduce costs we have also 
signed new supply chain and framework 
agreements including mitie and interserve 
and renewed our three year contract 
with ms 
access and safety is the group’s largest 
and longest established division and 
provides maintenance inspection and 
testing solutions for the highlyregulated 
area of “working at height” as well as the 
design and installation of permanently 
installed façade access and fall arrest 
equipment contracts often include both 
the initial installation of access solutions 
and ongoing maintenance the majority of 
clients enter into a contract for a period of 
three to five years
the division generated sales of £96m and 
adjusted ebit of £17m for the year ended 
31 december 2014 
electrical services is currently the group’s 
second largest division with sales of £66m 
and adjusted ebit of £19m in the year 
ended 31 december 2014 the division is 
an established provider of lightning and 
surge protection systems pat testing  
and fixed wire testing services it is involved 
in both installation services and the 
maintenance testing and repair of systems 
lightning protection is the largest business 
within ptsg electrical services
our newest division is ptsg high level 
cleaning our acquisition of acescott an 
established business with expertise in the 
design and application of cleaning systems 
for large and complex buildings in july 2014 
contributed £04m to adjusted operating 
profits and £18m of revenue to the group 
for the year ended 31 december 2014
high level cleaning includes a wide  
range of specialist cleaning services from 
commercial window cleaning to pressure 
washing of cladding façades guttering 
and rooftops and graffiti and chewing gum 
removal customers’ buildings include 
office blocks shopping centres factories 
and hotels ptsg has a clear advantage  
in tailoring projects that require complex 
access systems to clean and maintain 
buildings externally with minimal 
disturbance to the occupiers 
chief executive’s 
review continued ptsg annual report and accounts 2014
13
strategic report
corporate governance 
financial statements
ptsg receives great feedback every day of the week which is a great 
testament to the work that the team delivers day in day out here are 
just a few of our customers’ comments about the company’s work
new staff
we have a highly experienced management 
team with extensive industry experience 
that is focused on creating shareholder 
value through organic and acquisitive 
growth over 2014 we welcomed two  
new executive members to strengthen  
our board who each bring a wealth of 
experience and knowledge and will help  
to drive ptsg forward and achieve our 
strategic goals mark watford joined the 
group as finance director in september 
2014 and is a chartered accountant 
previously mark was a vice president of 
finance at smith  nephew plc roger 
teasdale joined the group as managing 
director on 17 november 2014 and was 
previously president of the advanced 
wound management division divisional 
revenue of 14 billion with 4000 
employees of smith  nephew plc 
since the end of the year we have also 
welcomed alan howarth and roger 
mcdowell as nonexecutive directors alan 
was appointed as a director of chamberlin 
plc in january 2007 and was previously a 
partner in ernst  young he is chairman of 
cerillion technologies limited and essentia 
limited and has further nonexecutive 
interests in a range of private companies
roger was managing director of oliver 
ashworth for 18 years and led its main 
market listing and subsequent sale  
to saintgobain sa he is currently the 
chairman or a nonexecutive director of 
eight quoted companies 
outlook for 2015
we have had a good start to 2015  
and continue to trade in line with our 
expectations our first acquisition is 
planned for the second quarter of 2015 
with a good pipeline of future opportunities
on 11 february 2015 we listed on aim 
raising £5m for ptsg and were delighted to 
become the first yorkshirebased business 
to ipo in 2015 we are acutely aware of the 
need to continually reinvest in the group in 
order to promote future growth both 
organically and through acquisition
customer quotes
jenni harcombe ppm and 
compliance support manager for 
fm at marks and spencer said 
“ptsg is by far our best fm supplier 
their unique delivery model ensures 
that they work consistently and deliver 
to a fantastic standard i really can’t 
speak highly enough of the work that 
ptsg does for us”
gary haines from unite said 
“ptsg gets what true partnership is 
actually all about and that effective 
communication is fundamental to 
maintain transparency and trust this is 
helping from a continuous improvement 
perspective where compliance and the 
right corrective actions are making a 
real difference to both businesses 
“ptsg has developed an understanding 
of unite’s building characteristics so 
that the team can deliver a bespoke 
onsite management service acting  
as facilities officers porters informal 
security and technician the company’s 
building managers ensure that unite 
receives a consistent high quality 
service”
simon pateman stations manager 
at tubelines said “ptsg has 
developed processes for ensuring  
that innovation is driven through their 
relationship at all levels 
“we are benefiting through pooling 
knowledge and resources to identify 
value creation and innovation 
opportunities both organisations have 
worked hard to implement changes  
that add value to the relationship
“we have created an effective 
operational environment to harness the 
value of partnership working to deliver 
individual and collective business goals
“together through strong and effective 
collaborative working we are keeping 
london on the move”
wwwptsgcouk 
“ pipeline of acquisition 
opportunities for 2015 
2016 and 2017”
paul teasdale 
chief executive officer