6pm Holdings plc - Interim Results

Friday, August 9th, 2013

On 9 August, 6pm Holdings plc published its half-year financial statements covering the six months ended 30 June 2013.

Performance Overview

During the period under review, the 6pm Group continued to grow its revenue with a further 16% increase to GBP4.5 million reflecting the continuous effort in attracting new projects especially in the UK National Health Service (NHS) sector. In fact, during the first half of 2013, the 6pm Group secured a contract in excess of GBP2 million with St. Geroge’s Trust to deliver a system by the end of the year incorporating Electronic Document Management (EDM) as well as Intelligent File and Inventory Tracking (iFIT). Furthermore, the 6pm Group sold its CLIMATE solution for HIV patients to a number of UK trusts. The revenues for the period under review also reflect sales related to the Group’s Quick suite of products which recently has been rebranded. Moreover, the 6pm Group is also currently implementing an EDM project in Georgia in partnership with EMC.

Cost of sales increased by 9.5% to GBP2.85 million reflecting the increased business activity. Nonetheless, given the larger increase in turnover, the 6pm Group registered a 29.2% increase in gross profit to GBP1.7 million as well as an improved gross profit margin to 36.9% compared with a 33.2% margin during the first six months of 2012.

Administrative expenses also increased by 23.8% to GBP1.3 million leading to an operating profit of GBP0.32 million representing a 58% increase over the comparable period.

After accounting for net finance costs of GBP0.08 million (including the loss attributable to the 25% shareholding in emCare360 Ltd which is serving a substantial client base in the field of eMonitoring and eCare), the Group’s pre-tax profit amounted to GBP0.25 million compared to GBP0.18 million in the first half of 2012. The 6pm Group benefitted from a marginal tax credit leading to a net profit of GBP0.25 million representing a 35% increase over the previous period.

The Balance Sheet shows total assets of GBP9.3 million reflecting a marginal 1.2% increase over the figures as at 31 December 2012. On the other hand, total liabilities were relatively unchanged at GBP4.1 million compared to the previous financial year end whilst total equity increased by 2.9% to GBP5.16 million since 31 December 2012 given the profit registered during the period under review.

Dividend  

The Directors did not declare the payment of an interim dividend because the Group is expecting to utilise significant amounts of cash going forward for the move to the new premises in Malta as well as for other opportunities which are being currently considered.

Nonetheless, the Directors also explained that if the positive results continue for the remaining part of 2013, the Board aims to recommend the payment of another final dividend for approval by shareholders at the Annual General Meeting.

Outlook

Looking ahead, the Directors explained that the Group is currently developing clinical products for the UK NHS sector including the solution for stroke patients which will be available in the fourth quarter of this year. Furthermore, discussions are taking place to start the development of a clinical solution for dementia patients and another for Hepatitis C.

Elsewhere, 6pm will be adding more products to its Quick suite by the end of the year. Furthermore, the Group is also seeking to expand geographically as it pursues sales opportunities in Gibraltar, the Netherlands and Ireland whilst also considering other opportunities in Libya and the Middle East.

6pm’s associate, emCare360 Ltd, is planning to expand the services being offered with all the necessary development emanating from the Group.

In Malta, the 6pm Group will be moving into new offices named the 6PM Business Centre which will also allow further expansion. Furthermore, the move is expected to create synergies and increase productivity throughout all the companies within the Group.

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6pm Holdings plc – Interim Financial Report as at 30 June 2013

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