New equity issue by 6pm Holdings plc
First issue to be denominated in GBP
The shareholders of 6pm Holdings plc (Ivan Bartolo, Alan Timothy West-Robinson and Stephen David Wightman) are offering to the public 2.25 million shares (30 per cent of the issued share capital of the company) of a nominal value of £0.20 each at a price of £0.67 per share.
This is the first opportunity for local investors to acquire shares denominated in GBP on the Malta Stock Exchange providing investors with an opportunity to diversify their investment portfolios.
The offer opens this Monday and closes on September 20 or earlier. The company's 7.5 million ordinary shares are expected to be admitted to the Official List of the Malta Stock Exchange on September 24, with trading in these shares expected to commence the following day.
The Offerors have undertaken not to dispose of any of their remaining shares in 6pm Holdings plc during the next 24 months unless the executive directors elect to provide own shares in the event that employees exercise any of their Share Options to be granted on January 1, 2008. The number of shares in respect of which share options may be granted is limited to 10 per cent of the issued share capital of the company.
6pm Holdings plc was incorporated on May 28, and converted into a public limited company on August 22. It is a holding company and has two fully-owned subsidiaries - 6pm Limited and 6pm Management Consultancy (UK) Limited. The 6pm Group currently employs approximately 85 technology consultants (including full-time employees and sub-contractors on a definite contract) based in Malta and the UK. The recently inaugurated head office in Naxxar is not owned by the group as it was transferred to Sprint Holdings Limited, a company fully-owned by Ivan Bartolo. The building is currently being leased to 6pm Limited.
6pm Limited was originally established in 2001 under the name of 6pm Management Consultancy Limited by Ivan Bartolo. In September 2004, 6pm Management Consultancy (UK) Limited was set up by Alan Timothy West-Robinson and Stephen David Wightman to work closely with 6pm Limited.
The Group is principally engaged in the provision of managed IT services and systems integration that supports enterprise software. The Group is focused on servicing clients with pre-installed operating systems, databases and other applications who find it more cost-effective to outsource their IT demands. 6pm have a clearly defined strategy to deliver growth, sustainable profits and positive cash flows through organic growth across its complementary business streams. The Group operates mainly in the United Kingdom but also services clients in other countries including Scandinavia, America and Canada.
Its clients range from small companies to very large international companies involved in various industry sectors as well as local and central government. In particular, the Group works in partnership with other larger IT service companies and consultancies in the UK such as CapGemini, Fujitsu UK and British Telecom.
For the year ended December 31, 2006, 6pm's revenues were principally derived from resourcing services provided to CapGemini, which accounted for 77 per cent of turnover and 61 per cent of gross profitability. The dependency on CapGemini is expected to drop to 58 per cent of revenue in 2007 and 40 per cent of gross profits as the Group has reportedly signed up various new clients in recent months.
The prospectus dated September 3, states that although the 6pm Group is not actively considering any acquisitions, the directors may seek to acquire private businesses having particular technical areas of expertise that will strengthen the Group and accelerate growth. 6pm is reportedly targeting three possible acquisitions abroad and one in Malta. In such an eventuality, it is likely that 6pm will need to raise further funds, possibly through a new offering of the company's shares.
At an offer price of £0.67 per share, investors are being given the opportunity to acquire shares in an IT services company at a historic price to earnings multiple of 14.6 times and an EV/EBITDA multiple of 10.9 times. Should the 6pm Group manage to achieve its projected profitability in 2007 (+67.5 per cent to £577,674), the price to earnings ratio will drop to a more attractive 8.7 times. This is reportedly in line with valuation multiples of UK-listed IT companies with a market capitalisation ranging between £3 million and £20 million.
Moreover the Directors of 6pm Holdings plc have adopted a policy that subject to available cash flows, 40 per cent of the Company's distributable profits in each year will be paid to shareholders in the form of a dividend. This should translate into an attractive return for shareholders should the 2007 projections materialise.
This is the first opportunity for local investors to acquire shares denominated in GBP on the Malta Stock Exchange providing investors with an opportunity to diversify their investment portfolios.
The offer opens this Monday and closes on September 20 or earlier. The company's 7.5 million ordinary shares are expected to be admitted to the Official List of the Malta Stock Exchange on September 24, with trading in these shares expected to commence the following day.
The Offerors have undertaken not to dispose of any of their remaining shares in 6pm Holdings plc during the next 24 months unless the executive directors elect to provide own shares in the event that employees exercise any of their Share Options to be granted on January 1, 2008. The number of shares in respect of which share options may be granted is limited to 10 per cent of the issued share capital of the company.
6pm Holdings plc was incorporated on May 28, and converted into a public limited company on August 22. It is a holding company and has two fully-owned subsidiaries - 6pm Limited and 6pm Management Consultancy (UK) Limited. The 6pm Group currently employs approximately 85 technology consultants (including full-time employees and sub-contractors on a definite contract) based in Malta and the UK. The recently inaugurated head office in Naxxar is not owned by the group as it was transferred to Sprint Holdings Limited, a company fully-owned by Ivan Bartolo. The building is currently being leased to 6pm Limited.
6pm Limited was originally established in 2001 under the name of 6pm Management Consultancy Limited by Ivan Bartolo. In September 2004, 6pm Management Consultancy (UK) Limited was set up by Alan Timothy West-Robinson and Stephen David Wightman to work closely with 6pm Limited.
The Group is principally engaged in the provision of managed IT services and systems integration that supports enterprise software. The Group is focused on servicing clients with pre-installed operating systems, databases and other applications who find it more cost-effective to outsource their IT demands. 6pm have a clearly defined strategy to deliver growth, sustainable profits and positive cash flows through organic growth across its complementary business streams. The Group operates mainly in the United Kingdom but also services clients in other countries including Scandinavia, America and Canada.
Its clients range from small companies to very large international companies involved in various industry sectors as well as local and central government. In particular, the Group works in partnership with other larger IT service companies and consultancies in the UK such as CapGemini, Fujitsu UK and British Telecom.
For the year ended December 31, 2006, 6pm's revenues were principally derived from resourcing services provided to CapGemini, which accounted for 77 per cent of turnover and 61 per cent of gross profitability. The dependency on CapGemini is expected to drop to 58 per cent of revenue in 2007 and 40 per cent of gross profits as the Group has reportedly signed up various new clients in recent months.
The prospectus dated September 3, states that although the 6pm Group is not actively considering any acquisitions, the directors may seek to acquire private businesses having particular technical areas of expertise that will strengthen the Group and accelerate growth. 6pm is reportedly targeting three possible acquisitions abroad and one in Malta. In such an eventuality, it is likely that 6pm will need to raise further funds, possibly through a new offering of the company's shares.
At an offer price of £0.67 per share, investors are being given the opportunity to acquire shares in an IT services company at a historic price to earnings multiple of 14.6 times and an EV/EBITDA multiple of 10.9 times. Should the 6pm Group manage to achieve its projected profitability in 2007 (+67.5 per cent to £577,674), the price to earnings ratio will drop to a more attractive 8.7 times. This is reportedly in line with valuation multiples of UK-listed IT companies with a market capitalisation ranging between £3 million and £20 million.
Moreover the Directors of 6pm Holdings plc have adopted a policy that subject to available cash flows, 40 per cent of the Company's distributable profits in each year will be paid to shareholders in the form of a dividend. This should translate into an attractive return for shareholders should the 2007 projections materialise.