6pm Holdings plc - Full-Year Results

Tuesday, April 16th, 2013

On 15 April, 6pm Holdings plc published its preliminary financial results for the year ended 31 December 2012.

Performance Review

The 2012 results show a turnaround in performance as the Group returned to profitability following two consecutive years of losses. In fact, the 6pm  Group reported a GBP0.51 million net profit during the year under review in contrast to the GBP0.33 million net loss incurred in 2011.

The turnaround reflects the 34.6% increase in revenue to GBP7.2 million as the Group strengthened its NHS market position through the development of additional niche products. Furthermore, the 6pm Group benefitted from the synergies created from the various acquisitions undertaken in 2011. Cost of sales increased by 25.5% to GBP4.4 million in line with the increased business activity whilst administrative expenses only increased by 0.6% to GBP2.2 million reflecting the cost synergies created from the aforementioned acquisitions. As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to GBP0.8 million in contrast to the negative EBITDA of GBP0.2 million in 2011.

Depreciation increased by 16.5% to GBP0.28 million whilst net interest expense dropped by 31% to GBP45,830.

Overall, the 6pm Group reported a pre-tax profit of GBP433,586 in contrast to the pre-tax loss of GBP0.56 million incurred in 2011. After accounting for a tax credit of GBP92,950 and minority interest of GBP13,852 (relating to the 30% of Softweb Ltd not owned by 6pm), the Group’s net profit attributable to shareholders amounts to the aforementioned GBP0.51 million.

Dividend & Bonus Issue

Given the turnaround in profitability, the Directors of 6pm decided to recommend a dividend payment for the first time in the last five years. The Directors recommended a net dividend of GBP0.016 per share to all shareholders as at the close of trading on Tuesday 7 May. This dividend will be paid on 28 June subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Tuesday 11 June.

Furthermore, the directors also recommended a 1 for 25 bonus issue to all shareholders as at the close of trading on Tuesday 7 May. The bonus issue will be funded through the capitalisation of GBP152,156 from the share premium reserve.


6pm Holdings plc – Preliminary Results for the financial year ended 31 December 2012

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