6pm Holdings plc - Full-Year Results

Tuesday, April 15th, 2014

On 14 April, 6pm Holdings plc published the financial statements for the year ended 31 December 2013.

Performance Overview

During the period under review, the 6pm Group registered a 29.2% increase in revenue to GBP9.3 million largely reflecting the secured contracts with a number of NHS Trusts and Hospitals in the UK including one project which generated the largest sale in the Group’s history.

Given the increased business activity, cost of sales rose by 28.4% to GBP5.6 million and administrative expenses grew by 28.5% to GBP2.9 million. Nonetheless, operating profit still grew by 44.3% to GBP0.78 million with the operating profit margin also improving from 7.6% in 2012 to 8.4% during the year under review.

Excluding the depreciation and amortisation charge, the 6pm Group registered an earnings before interest, tax, depreciation and amortisation (EBITDA) of GBP1.15 million representing a 39.8% increase over the previous year’s figure and the highest in the Group’s history. Similarly, the EBITDA margin improved by 0.94 percentage points to 12.5%.

Net interest expense amounted to GBP0.09 million, 44.4% higher than the previous year’s figure in line with the 25.9% increase in total debt to GBP1.8 million.

The share of losses from associates (including DSG Consulting Limited, emCare360 Limited and Makeezi Limited) grew by 17.4% to GBP0.05 million.

Overall, the 6pm Group registered a pre-tax profit of GBP0.64 million representing a 47.1% increase over the previous year’s comparable figure. After accounting for a tax credit of GBP0.1 million (2012: GBP0.09 million) and minority interest of just GBP2,106, the net profit for 2013 amounted to GBP0.74 million, up 45.2% from the previous financial year. This translates into an earnings per share of GBP0.038 compared to GBP0.026 in 2012.

The Statement of Financial Position shows a 1.6% increase in total assets to GBP9.3 million largely reflecting the acquisition of intangible assets and investment property which were partially offset by the 31.1% reduction in trade receivables to GBP1.99 million. Meanwhile, total liabilities dropped by 8.6% to GBP3.8 million mainly due to the 29.1% reduction in trade and other payables to GBP1.78 million which was partially offset by the 25.9% increase in total borrowings to GBP1.8 million.

Total equity increased by 10.1% to GBP5.5 million mainly reflecting the profit registered during the period under review which translates into a net asset value per share of GBP0.279 (2012: GBP0.253). The Group’s return on average equity is 14.4% compared to 10.6% in 2012 and its return on average assets amounts to 8.1% (2012: 6.2%).

Dividend & Bonus Issue

The Directors recommended a final net dividend of GBP0.02 per share (2012: GBP0.015) to all shareholders as at the close of trading on 15 May. The dividend will be paid by not later than 30 June subject to shareholder approval at the upcoming Annual General Meeting (AGM) scheduled to be held on 19 June.

The Directors also recommended a 1 for 25 bonus share issue to shareholders as at the close of trading on 15 May.

Outlook

The Directors note that the aim of the Group is to further develop sales, especially in the newly-developed products, while also investing in getting annuity revenue. Furthermore, the Group will maintain its cost containment efforts and building on synergies within the Group to help sustain the profitability of 6pm within the foreseeable future.

Download

6pm Holdings plc – Preliminary Results for the financial year ended 31 December 2013.

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