6pm Holdings plc - Interim Directors’ Statement

6pm Holdings plc issued their Interim Directors Statement on 27 November 2008 in which the Directors explained that although their order book has increased substantially, particularly in the Public Sectors activities, the current conditions in the UK have led to the postponement of other work. The Directors explain that there is still the possibility for a few of these orders to be executed before the end of 2008. However if these new orders are also postponed, 6pm will have to commence this work in the first three months of 2009. In such a scenario, 6pm will have its strongest order book ever.

6pm has also been negatively affected by the weakness of the sterling against the euro and increasing logistics costs.  However the company is taking measures to try to reduce their respective impact on its profitability by the redistribution of work delivered from the UK and Malta and by the optimization of resources.

The Directors reiterated that the company continues to follow its strategy of vertical alignment and the creation of specialism and remain confident that this strategy will be essential for client growth, the achievement of economies of scale in delivery. This strategy should also allow the company to maintain premium sales rates to protect their revenues and margins.

6pm stated that their largest contracts are with major global consultancies which themselves have contracts of 4 to 10 years with committed central government spending.  These continue to bring new business as the scope of these contracts expand and evolve.

The Directors concluded by stating that apart from the postponement of new orders, their medium to long term performance remains in line with expectations

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