6pm Holdings plc - Interim Results

Tuesday, August 16th, 2016

On 12 August, 6pm Holdings plc published its half-year results covering the six months ended 30 June 2016.

Performance Overview

During the period under review, the 6pm Group registered a 23.0% increase in revenues to GBP5.4 million (H1 2015: GBP4.4 million), reflecting growth in all three business units of the Group – licences & products (+11.6%), professional services (+26.1%) and support and maintenance (+45.4%). The 2016 interim financial statements reflect the contributions generated by Blithe Computer Systems Limited (which was acquired in July 2015) and emCare 360 Limited (of which 6pm became the entire owner as from 1 January 2016).

Similarly, the cost base of 6pm (cost of sales and administrative expenses) rose by 19.1% to GBP4.6 million (H1 2015: GBP3.9 million). In their commentary, the Directors also made reference to the negative effects of a weaker Pound Sterling following the result of the referendum on the UK’s membership within the EU as costs denominated in euro are now relatively more expensive when converted to GBP – which is the reporting currency of the Group. However, given the larger increase in revenues when compared to the increase in aggregate costs, the operating profit of the 6pm Group surged by 51.9% to GBP0.8 million compared to GBP0.5 million in the first six months of 2015.

Finance charges increased substantially during the period under review to GBP0.3 million reflecting the costs in relation to the 5.1% unsecured bonds redeemable in 2025 which were issued in the second half of 2015. However, pre-tax profits of the 6pm Group still improved by 18.3% to GBP0.5 million (H1 2015: GBP0.4 million). After accounting for a marginal tax expense and minority interest, the Group’s net profit for the period amounted to GBP0.45 million, representing an 11.8% increase over the comparable figure reported in respect of the first six months of 2015.

The Statement of Financial Position as at 30 June 2016 shows a 7.5% increase in total assets compared to the figures as at 31 December 2015 to GBP38.2 million on the back of a 13.5% increase in intangible assets and a notable increase in property, plant and equipment to GBP2.2 million. On the other hand, total liabilities grew by 4.2% to GBP20.5 million. Accordingly, the Group’s equity base grew by 11.5% to GBP17.6 million. This translates into a net asset value per share of GBP0.8371 (excluding non-controlling interests).

Dividend

In line with the Group’s dividend policy, the Directors did not declare an interim dividend.

Outlook

The Directors emphasized the need for the implementation of further cost control measures, especially in view of the weaker Pound Sterling. Furthermore, they also said that the outcome of the discussions in relation to the interest of third party investors to acquire all the issued share capital of the Company should be known soon.

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6pm Holdings plc – Interim Results covering the six months ended 30 June 2016.

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