On 30 August, 6pm Holdings plc announced its 2011 half-year results revealing a 20.6% increase in revenue to GBP2.1 million. The turnover figure for the first time includes revenue emanating from the recently acquired IT company Compunet. During the period under review, 6pm also subscribed to 25% of the share capital of emCare360 Ltd primarily to develop, implement and deliver electronic and mobile tele-health, tele-care and health care information services to private and public entities and individuals both in Malta and overseas. However the Group’s cost of sales and administrative expenses which soared by 26.6% and 23.4% respectively, substantial deteriorated 6pm’s bottom line. 6pm Holdings registered a loss of GBP343,314 for the period under review compared to a loss of GBP 218,909 incurred in the first six months of 2010.
The Directors explained that the loss was mainly due to the rights issue costs which amounted to GBP 132,190. 6pm explained that following the rights issue (which was fully subscribed to on 29 April 2011), it is now fully focused towards achieving the results outlined in the overall strategic business plan prepared in 2010.
The Directors stated that during the first quarter of the year, the Group mainly focused on the execution of the rights issue as well as the restructuring of the management team for the new business strategy whilst the top priority during the second quarter of 2011 was that of ensuring that 6pm will once again reach the same level of monthly sales orders as it enjoyed in years prior to 2010 – which target was consistently achieved since April 2011. Moreover, during the first half of the year the Group started working on introducing new cost reduction measures which should come into effect by September 2011. 6pm also stated that it is expecting to start transforming the said sale orders into revenue at a faster pace, thereby increasing gross profit contribution whilst keeping its administrative cost base fairly constant.
In conclusion the Directors stated that the Board is confident it will achieve the expected positive results in the coming years.
Similar to last year, the Directors did not declare an interim dividend.
Download a copy of the 2011 Interim Report of 6pm Holdings plc