6pm Holdings plc - Full-Year Results

On 17 April, 6pm Holdings plc published its 2011 consolidated financial statements comprising the results of 6pm Holdings (the parent company), the UK & Maltese operations and its recently added subsidiaries, namely the Group’s office in Macedonia, Softweb Ltd (70% owned) and the nine-month performance of the fully-owned subsidiaries Compunet Operations & Compunet Agencies.

The 2011 Group results show a revenue figure of GBP5.3 million compared to the GBP3.1 million generated in the previous year. The rise in turnover is mainly related to the acquisitions and investments made during the year in Softweb and the two Compunet subsidiaries which introduced a new revenue stream, referred to as “Retail, infrastructure and related services”. This area contributed GBP1.3 million in 2011.

Naturally, the introduction of these subsidiaries also led to an increase in cost of sales to GBP3.5 million compared to the previous year’s figure of GBP1.8 million. Although the 6pm Group reported a 46.9% increase in gross profit to GBP1.8 million, the gross profit margin slipped from 40.5% in 2010 to 34.3% in 2011. After accounting for a 41.2% increase in administrative expenses to GBP2.2 million, the 6pm Group reported an operating loss of GBP401,960 compared to the previous year’s operating loss of GBP334,757.

Net interest expense amounted to GBP88,689 representing a 21.1% decline from the previous year’s figure after the Group reduced its overall bank borrowings following the rights issue effected in April 2011.

The 6pm Group’s financials were also impacted by a loss of GBP67,809 on the disposal of property. Moreover, the Group incurred GBP4,803 as share of losses from the two associate companies in which 6pm acquired an interest during 2011, namely emCare360 Ltd and DSG Consulting Ltd.

Overall, the pre-tax loss of the 6pm Group amounted to GBP563,261 compared to a pre-tax loss of GBP447,235 in 2010. After accounting for a tax credit of GBP208,373 and minority interest of GBP26,883, the loss attributable to shareholders amounts to just over GBP328,000 (2010: loss of GBP295,486).

The Directors did not recommend the payment of a dividend. However, the Directors proposed a 1 for 25 bonus issue to shareholders as at close of trading on Thursday 26 April.

Looking ahead, the Directors explained that the benefits of the increase in orders from the UK National Health Service (NHS) during the latter part of 2011 are expected to flow into 2012. Moreover, the Group is expected to launch a new product by June 2012 in line with the Group’s low margin, high volume product strategy.


Download a copy of the 6pm Holdings plc 2011 Financial Statements