6pm Holdings plc - Full-Year Results

Friday, April 17th, 2015

On 16 April, 6pm Holdings plc published its preliminary financial statements for the year ended 31 December 2014.

Performance Overview 

During the year under review, the 6pm Group registered a 4.6% increase in turnover to GBP9.68 million notwithstanding that the Group had to halt sales on one of its most popular products as it decided to terminate its partnership with a third party with whom it had been collaborating on this same product. Moreover, the 2014 revenue figure exceeded that of 2013 in spite of the fact that the Group had recorded its largest sale ever in 2013.

Cost of sales dropped by 9.6% to GBP5.1 million leading to a gross profit figure of GBP4.6 million representing a 26.7% increase over the previous year’s comparable figure. On the other hand, administrative expenses increased by 23.5% to GBP3.6 million. However, the Group’s operating profit still increased by 39.9% to almost GBP1.1 million. Excluding the depreciation and amortisation charge of GBP0.38 million (2013: GBP0.37 million) from the abovementioned costs, the Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to GBP1.47 million representing a 27.7% improvement over the previous year’s figure. The EBITDA margin improved to 15.2% from 12.5% in 2013.

Net interest expenses increased by 61.6% to GBP0.14 million reflecting the increased debt levels.

Meanwhile, the share of loss from the various associate companies of the Group contracted by 82.6% to GBP9,359.

Overall, the pre-tax profit of the Group increased by 47.2% to GBP0.94 million. After accounting for a tax charge of GBP0.12 million and minority interests of GBP11,243, the Group’s net profit for 2014 amounted to GBP0.81 million compared to GBP0.74 million in 2013.

The Statement of financial position shows a 34.9% increase in total assets to GBP12.5 million largely reflecting the 22.4% increase in ‘intangible assets’ to GBP3.8 million (reflecting the Group’s continued investment in its own intellectual property), the 79.2% increase in trade receivables to GBP3.6 million as well as the addition of ‘available for sale investment’ of GBP0.94 million and financial assets of GBP0.16 million. Similarly, total liabilities increased by 81.9% to GBP6.9 million mainly reflecting the 83.5% in ‘trade and other payables’ to GBP3.27 million and the doubling of the Group’s borrowings to GBP3.6 million. Overall, shareholders’ funds grew by just 2.4% to GBP5.65 million mainly reflecting the profit registered during the period under review which was partly offset by the GBP0.26 million reduction in the Group’s exchange translation reserve (reflecting the exchange loss from translating the Group’s euro business into Sterling, the reporting currency). This translates into a net asset value per share of GBP0.275 (2013: GBP0.268).

The post-tax return on equity of the Group marginally improved by 37 basis points to 14.51% whilst the post-tax return on assets contracted by 65 basis points to 7.4%.

Dividend & Bonus Issue  

The Directors recommended a final net dividend of GBP0.02 per share compared to last year’s dividend of GBP0.019 per share. The dividend will be paid by not later than 29 July to all shareholders as at the close of trading on 22 May 2015 subject to shareholders approval at the upcoming Annual General Meeting scheduled to be held on 25 June.

The Directors also recommended a 1 for 50 bonus share issue to all shareholders as at the close of trading on 22 May. The bonus issue, which is also subject to shareholder approval at the upcoming Annual General Meeting, will be funded through the capitalization of GBP82,286 from the share premium reserve account.

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6pm Holdings plc – Preliminary Statement of results for the year ended 31 December 2014.

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