On 19 November, 6pm Holdings plc issued its Interim Directors’ Statement explaining that due to the difficult trading conditions experienced in the first six months of the year, the operating results for 2010 are forecast to be below the level registered in 2009.
The UK subsidiary continued to operate in a tough environment during the first ten months of 2010 due to the postponement of order renewals from existing clients and delays in closure of new orders. This was primarily due to the uncertainty surrounding the austerity measures planned by the new UK coalition Government combined with the current economic turmoil and a weak Sterling. The Directors stated that late in October, the new UK coalition Government announced its spending plans with for the public sector including the NHS – a key market for 6pm. The Government vouched to maintain the level of spend allocated to the UK NHS resulting in some recent contract wins within this sector. Also the sales pipeline for the first quarter of 2011 is improving.
The Malta subsidiary is committed to increasing its market share of revenue from local ICT opportunities and is expected to meet the projections set for 2010. For 2011, the Malta subsidiary will continue to focus on expanding in the local market whilst also trying to establish a footprint in the North African ICT market.
A number of changes in Directorships and operations have taken place since the beginning of the year as the Company is currently undergoing restructuring to reflect the temporary downturn in the UK subsidiaries’ performance. This should further reduce costs across the company as a whole.
In conclusion, the Directors stated that 2010 has been a very challenging year however the decisive actions taken during the year allowed the business to survive the economic downturn and place itself for a much improved performance in 2011. In fact, the Directors stated that there are already signs of recovery in the Company’s key markets which should lead to an improved performance in the first six months of 2011 compared to the same period in 2010.