6PM reduces cost base and maintains profitability

Having successfully implemented several strategic and operational improvements in FY19, the 6PM Holdings plc Group has reduced its cost base significantly and maintained a consistent level of profitability in its core operations.

The principal activity of 6PM Holdings plc and its subsidiary companies is software solutions, delivering healthcare products enabling organisations to enhance and optimise efficiency. These include product solutions aimed at the UK National Health Services. The only trading subsidiaries within the Group are Idox Health Limited and Idox DOOEL; domiciled in the UK and Macedonia respectively.

Non-recurring restructuring costs were incurred in the disposal of the SIX-PM Health Solutions (Ireland) Limited and the trade and assets of the Group’s non-core emCare business. This has contributed to a reduction in revenue to £2,572,000 during the first six months ended 30 April (H12019: £3,912,000), although supports the strategic rationale as gross margin has remained relatively consistent at 89.5% (H12019: 91.6%).

The Group will capitalise on its simplified structure, and combined with its revised and improved sales governance procedures, will continue to improve margins and refine its cost base.

Research and Development activity is now shared with the wider Idox Group and has also contributed to a significant reduction in the Group’s cost base. This has created a synergised platform and accelerated the Group’s plans to make its flagship products, iFIT and Lilie, more interactive and web based.

As a result, user experience and profitability are expected to improve as the products will demand less support time and reduce implementation costs.

Investment in our customer-focused account management network has magnified the assessment of product roadmaps and continues to generate creditable partnerships and identify revenue opportunities. This was best demonstrated in our recent development, in partnership with an NHS Foundation Trust, to pioneer an online booking system in a bid to streamline and accelerate COVID-19 testing for frontline staff.

Using Lillie’s SMS module, frontline staff will receive their COVID19 test result via text message along with additional signposting information, avoiding the need for a second visit and helping staff to get back to work as quickly as possible.

The Group remains agile and will continue to develop its customer relationships to capitalise on its strong market position. The COVID-19 outbreak has had limited impact on Group’s business so far and demand for its products and services has remained broadly unaffected, principally due to the fact that a substantial portion of the 6PM Group’s revenue is precontracted and, or recurring.

The Group has activated its business continuity plan to make sure it remains operational at all times. All unnecessary business travel has stopped and staff has been instructed to remain diligent, safe and aware.

The Group has implemented employee home working, split teams and introduced flexible work schedules across all applicable departments and roles. Other than those already disclosed, no separate or additional disclosure in relation to current and expected impact of COVID19 on the financial statements, principal risks and uncertainties, going concern, impairment of nonfinancial assets, the presentation of COVID-19 related items in the statement of profit or loss is deemed necessary.

The Group will continue to monitor the situation on an ongoing basis and will keep the market updated as necessary.