On 26 August, 6pm Holdings plc announced its 2010 half-year results revealing a 38.6% drop in revenue to GBP1.8 million on the back of a slowdown of orders. This resulted in a substantial deterioration of the Group’s bottom line. 6pm Holdings registered a loss of GBP218,909 for the period under review compared to a loss of GBP38,011 incurred in the first six months of 2009.
The Directors commented that the Group was adversely affected by the uncertainty surrounding the UK general election and the subsequent formation of a new coalition government. These negative effects were further accentuated by the sovereign debt crises which prevailed across Europe. In response to all these adverse effects, the Directors explained that the Group restructured to improve potential sales, reduce costs, improve efficiency, reduce staff and tighten debt collection practices. Cost reduction measures included the waiving of wages by Executive Directors between April and August.
Due to the continued protraction of the opportunities in the UK public health sector, the Group increased its efforts in the private sector and successfully concluded new agreement with companies both in the UK and Malta. Results of these new contracts in the private sector are expected to filter through the financial performance in the second half of the year.
In conclusion the Directors stated that the results reflect the continued adverse trading conditions. However the Directors believe that the early signs of recovery in the private sector should help the Group in improving its performance by year-end based on the current exchange rate level of sterling vs the euro.
In the Half-Year Report no reference was made to the substantial contract in negotiation which 6pm had indicated could be concluded by the end of June 2010. Although in the Interim Statement of 19 May, 6pm’s Directors noted that there is no absolute certainty that this contract will be concluded by the half-year end, the Directors had expressed their cautious optimism that it is achievable and the effect on Group profits will materialise leading to a respectable first half year performance.
Similar to last year, the Directors did not declare an interim dividend.
Download a copy of the 2010 Interim Report of 6pm Holdings plc