On 18 May, 6pm Holdings plc published its Interim Directors’ Statement explaining that it expects to accomplish only a marginal level of profitability by the end of June 2009 similar to that recorded in the first half of 2008. The Directors stated that the Group continues to face the challenges of the current economic environment especially in its main market – the United Kingdom.
6pm reiterated that the U.K. market is suffering from a very deep and sustained recession resulting in extremely tough trading conditions as confirmed by announcements of two major clients. Furthermore the volatility in the euro versus sterling exchange rate continues to impact 6pm’s operations and results.
In response to these challenges, the Group has re-positioned parts of its business and focused on key accounts and special relationships especially in the U.K. Public Sector. Moreover 6pm strengthened the management team and where practical reduced costs in an attempt to place the Group well for either a prolonged recession or a swift up-turn.
The Directors concluded by saying that the investment made in the Group’s own Intellectual Property will enable it to provide superior solutions to its clients. In turn this should help ease pressures on cash-flow and assist in cementing our position in key accounts and market sectors.