6pm Holdings plc - Interim Results

On 5 August, 6pm Holdings plc published its half-year results covering the six months ended 30 June 2015.

Performance Overview

During the period under review, the 6pm Group registered an 8.3% drop in revenue to GBP4.41 million solely due to a 35% decline in income from the provision of services to clients whilst the other two revenue segments, namely ‘Licences & Products’ and ‘Support and Maintenance’ were practically unchanged. Nonetheless, the decline in revenue was outweighed by a 21.5% reduction in the Group’s cost of sales to GBP2.1 million reflecting plans to reduce costs considerably through the elimination of third parties and the use of more efficient systems during implementation stage. As a result, the gross profit for the period under review amounted to GBP2.3 million representing an 8.4% increase over the previous comparable period. The Gross Profit margin improved to 52.3% from 44.3% in the first half of 2014.

Administrative expenses increased by 5.8% to GBP1.7 million leading to an operating profit of GBP0.42 million representing an 18% increase over the previous comparable figure.

Finance costs surged by 41.9% to GBP0.08 million and investment losses widened to GBP0.04 million given the loss taken from one of the subsidiaries, namely emCare60 Ltd, in which the Group increased its shareholding.

Overall, 6pm reported a 7.3% increase in pre-tax profits to GBP0.41 million during the period under review. After accounting for a marginal tax expense and minority interest, the Group’s net profit for the period amounted to just over €0.4 million representing a 4.4% increase over the comparable figure reported in respect of the first six months of 2014.

The Statement of Financial Position as at 30 June 2015 shows a 6.5% increase in total assets compared to the figures as at 31 December 2014 to GBP13.4 million on the back of a 34.1% increase in trade and other receivables to GBP4.78 million. Similarly, total liabilities grew by 12.2% to GBP7.7 million given the 19% increase in trade and other payables to GBP3.89 million and the 4.6% increase in total borrowings to GBP3.78 million. Overall, the Group’s equity base contracted by 0.6% to GBP5.6 million as the profit registered during the period under review was outweighed by the dividend payment in respect of the 2014 financial year. This translates into a net asset value per share of GBP0.2677 (FY2014: GBP0.2692).

Dividend

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

Post-Reporting Period Events

In July, 6pm successfully launched a €13 million bond issue with part of the proceeds used to finalise the acquisition of Blithe Computer Systems Limited. This UK company has two clinical products and is expected to create a number of synergies with the rest of the 6pm Group.

The 6pm Group is also undertaking an internal reorganisation of its workforce whilst also consolidating its non-core activities. In the meantime, 6pm is researching new verticals where the Group can capitalise on its strong knowledge within the health industry.

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6pm Holdings plc  – Interim Results covering the six months ended 30 June 2015.