Strong business pipeline for 6pm
6pm Holdings plc published its interim results to June 30 following a board of directors' meeting , during which they did not recommend the payment of an interim dividend. The 2008 interim results of 6pm Holdings plc cannot be compared to the...
6pm Holdings plc published its interim results to June 30 following a board of directors' meeting , during which they did not recommend the payment of an interim dividend.
The 2008 interim results of 6pm Holdings plc cannot be compared to the half-year results of 2007 since the holding company was set up in July of last year and previously operated independently as 6pm Limited (Malta) and 6pm Management Consultancy (UK) Limited. The pro forma historical financial information was not provided for the first half of 2007 to enable us to analyse the performance from one period to the next.
During the first half of this year, 6pm generated a turnover of £2.6 million. Revenue from its "resourcing" clients, including CapGemini, totalled £1.1 million representing 43 per cent of total income. The other revenue streams emanated from the UK Health Sector (£959,874), development and other income (£285,400) and electronic data management services (£258,300). As foreseen by the company's directors, market trends moved towards business intelligence resulting in declining revenues from "resourcing" when compared to the July to December 2007 period. In response to this, the group, as stated in its 2007 annual report, repositioned its strategy towards business intelligence and targeted higher margin business. In this respect the company managed to attract new business from the UK health sector and through EDMS with income from these two sectors representing 46 per cent of the turnover registered in the first half of 2008 highlighting the importance of the company's refocus of its business. Furthermore, the group continued to reduce its dependency on CapGemini which declined to 19.4 per cent of revenue in the first half of this year from the 50 per cent level as at December 2007 and from 77 per cent in 2006.
After deducting £1.5 million in cost of sales, the group registered a gross profit of £1.2 million representing a gross profit margin of 45.2 per cent. Administrative expenses amounted to £1.1 million. 6pm registered an earnings before interest, tax, depreciation and amortisation (EBITDA) of £150,956. The group generated a pre-tax profit of £90,418, substantially lower than the profit registered in the first five months of the company's operations (between July and December 2007) of £314,265.
Total assets as at June 30 amounted to £4.97 million with shareholders' funds at £1.89 million. Based on the total number of shares in issue of 7,500,000, 6pm's net asset value per share is of £0.252. The group's net debt stands at £2.2 million representing a gearing ratio of 114.1 per cent.
The directors stated that there was a slow build-up during the first five months of this year with a respectable performance in June, similarly to the trend experienced in 2007. Moreover the directors revealed that in July the group registered a 70 per cent growth in pre-tax profit over the previous month and the business pipeline to the end of November this year suggests that this may continue for the remainder of the financial year. However, the July results do not show up in the half-year report. The 6pm Group have made inroads into the UK public health sector and the directors reported a strong order book well into 2009. Furthermore, early this year, the group became a gold partner of Business Objects and has already been awarded the first contract involving the business intelligence software of Business Objects. 6pm has already begun to attract customers in respect of its electronic data management services (EDMS) in which it is gaining significant expertise. As a result, the group will be diversifying its customer base which will continue to further reduce its dependency on CapGemini. All of this points towards a positive performance for the rest of the year and in 2009.
The 2008 interim results of 6pm Holdings plc cannot be compared to the half-year results of 2007 since the holding company was set up in July of last year and previously operated independently as 6pm Limited (Malta) and 6pm Management Consultancy (UK) Limited. The pro forma historical financial information was not provided for the first half of 2007 to enable us to analyse the performance from one period to the next.
During the first half of this year, 6pm generated a turnover of £2.6 million. Revenue from its "resourcing" clients, including CapGemini, totalled £1.1 million representing 43 per cent of total income. The other revenue streams emanated from the UK Health Sector (£959,874), development and other income (£285,400) and electronic data management services (£258,300). As foreseen by the company's directors, market trends moved towards business intelligence resulting in declining revenues from "resourcing" when compared to the July to December 2007 period. In response to this, the group, as stated in its 2007 annual report, repositioned its strategy towards business intelligence and targeted higher margin business. In this respect the company managed to attract new business from the UK health sector and through EDMS with income from these two sectors representing 46 per cent of the turnover registered in the first half of 2008 highlighting the importance of the company's refocus of its business. Furthermore, the group continued to reduce its dependency on CapGemini which declined to 19.4 per cent of revenue in the first half of this year from the 50 per cent level as at December 2007 and from 77 per cent in 2006.
After deducting £1.5 million in cost of sales, the group registered a gross profit of £1.2 million representing a gross profit margin of 45.2 per cent. Administrative expenses amounted to £1.1 million. 6pm registered an earnings before interest, tax, depreciation and amortisation (EBITDA) of £150,956. The group generated a pre-tax profit of £90,418, substantially lower than the profit registered in the first five months of the company's operations (between July and December 2007) of £314,265.
Total assets as at June 30 amounted to £4.97 million with shareholders' funds at £1.89 million. Based on the total number of shares in issue of 7,500,000, 6pm's net asset value per share is of £0.252. The group's net debt stands at £2.2 million representing a gearing ratio of 114.1 per cent.
The directors stated that there was a slow build-up during the first five months of this year with a respectable performance in June, similarly to the trend experienced in 2007. Moreover the directors revealed that in July the group registered a 70 per cent growth in pre-tax profit over the previous month and the business pipeline to the end of November this year suggests that this may continue for the remainder of the financial year. However, the July results do not show up in the half-year report. The 6pm Group have made inroads into the UK public health sector and the directors reported a strong order book well into 2009. Furthermore, early this year, the group became a gold partner of Business Objects and has already been awarded the first contract involving the business intelligence software of Business Objects. 6pm has already begun to attract customers in respect of its electronic data management services (EDMS) in which it is gaining significant expertise. As a result, the group will be diversifying its customer base which will continue to further reduce its dependency on CapGemini. All of this points towards a positive performance for the rest of the year and in 2009.