RS2 Software plc - Interim Directors’ Statement

Friday, November 16th, 2012

On 16 November, RS2 Software plc issued its Interim Directors’ Statement revealing that its performance during the second half of 2012 has exceeded targets with the conclusion of two significant licence contracts. During this period, RS2 concluded a €5 million licence and services contract with a major service provider in Latin America (as announced on 30 September – http://rizzofarrugia.com/news-events/2012/new-agreement-rs205/) and a €1.5 million licence and service contract with a major European payment service provider of e-payment solutions. Furthermore, the Directors announced that the Company is in an advanced stage of negotiations for securing another significant licence agreement outside of Europe by the end of the current year.

In September, RS2 officially inaugurated its new head office in Mosta which was built in line with the specific requirements of the Company’s long-term vision to allow it to expand the business further. In this respect, RS2 set up a new subsidiary, RS2 Smart Processing Ltd to start providing managed services. The new  Mosta building has a dedicated wing of approximately  1,000 square metres for this new service offering and is in conformity with the security requirements mandated by the Payment Card Industry (PCI) standards. Moreover, the new subsidiary has reached an agreement with IBM for the latter to host the necessary processing equipment at two sites in mainland Europe with one being the main production site and the other serving a disaster recovery site. In relation to this new service, RS2 is currently close to concluding a significant 3-year agreement before the end of this year. This agreement will be generating regular monthly income for the duration of the contract.

Overall, the Board of Directors expect the results for the second half of the year to be significantly better than those registered in the first half of 2012 when RS2 reported a pre-tax profit of just over €0.5 million. Similarly, the overall performance of 2012 is expected to be higher than the pre-tax profit of €2.38 million registered in 2011.

 

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