6pm Holdings plc - Full-Year Results

Thursday, April 28th, 2016

On 27 April 2016, 6pm Holdings plc published its preliminary results for the financial year ended 31 December 2015.

Performance Overview

During the year under review, the Group’s revenues grew by 17.1% to GBP11.3 million largely reflecting the increased success that the Group is achieving within the health products sphere especially with those products related to clinical services and hospital management. Furthermore, it is important to highlight that that as from July 2015 the results also include the consolidation of Blithe Computer Systems Ltd which was acquired by 6pm for GBP4.2 million.

The increased business activity as well as the consolidation of Blithe Computer Systems Ltd also led to a 3.4% increase in cost of sales to GBP5.3 million as well as a 16.4% rise in administrative expenses to GBP4.1 million. Nonetheless, the larger growth in revenue led to an 80.6% improvement in operating profit to GBP1.97 million. Excluding the depreciation figure of GBP0.68 million (2014: GBP0.38 million), the 6pm Group’s earnings before interest, tax, depreciation and amortisation (EBITDA) figure amounted to GBP2.65 million representing an 80.2% increase over the previous year’s comparable figure.

Following the €13 million bond issued by 6pm in June 2015, the Group’s interest costs increased to GBP0.33 million compared to GBP0.14 million in the previous financial year.

The Group’s income statement also includes a GBP15,014 loss from associates related to the aggregate loss incurred from the Group’s various associate companies.

Overall, 6pm recorded a pre-tax profit of GBP1.63 million for 2015 representing a 73.5% increase over the previous year’s comparable figure. After accounting for a tax credit of GBP63,594 and minority interest of GBP1,271, the Group’s net profit for 2015 amounted to GBP1.69 million compared to GBP0.81 million registered in 2014. This translates into an earnings per share of GBP0.081 (2014: GBP0.040).

The Statement of Financial Position shows a significant improvement in total assets to GBP35.5 million largely reflecting the GBP19 million uplift in the value of the Group’s proprietary software solutions following a change in the Group’s policy to value its core products thereby strengthening its financial position and underlining the fact that 6PM is considered a health products company. Similarly, total liabilities expanded by GBP9.9 million largely reflecting the aforementioned €13 million bond issue during 2015. Overall, the Group’s equity base improved by GBP11.5 million to GBP15.8 million reflecting the revaluation of the Group’s intangibles as well as the profit registered during the year under review. This translates into a net asset value per share of GBP0.753 (2014: GBP0.269). Given the larger increase in the Group’s equity base than in its profitability, the pre-tax return on equity eased from 16.8% in 2014 to 15.2% in 2015. Similarly, the post-tax return on assets retreated from 7.4% in 2014 to 7%.

Dividend

The Directors did not recommend the payment of a dividend given the interest of prospective investors in the Group.

Outlook

Looking forward, the Directors noted that the Group will continue to expand on its solutions coupled with the introduction of electronic and mobile care products through the full acquisition of one of its associates.

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6pm Holdings plc – Preliminary Results for the financial year ended 31 December 2015.

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