RS2 plc - Interim Directors’ Statement
On 19 November, RS2 Software plc published its Interim Directors’ Statement to update the market on its performance since 30 June.
The Directors explained that the Group continued to generate a strong operating and financial performance, for both the software licensing and managed services businesses.
In relation to the software licensing business, the Group has increased consultancy and implementation services given the additional services requested by existing clients. Furthermore, during the third quarter, RS2 went live with its first client in Latin America and due to the strong relationship with this client, RS2 will be delivering onsite and offsite implementation and consultancy services beyond the agreement signed in 2012. Additionally, the Group is in the process of negotiating a new licence deal with a client in Europe which is expected to be concluded during the first quarter of 2015.
On the managed services / processing side, during the period under review, the Group concluded negotiations on one of the letters of intent mentioned in the Interim Directors’ Statement published on 13 May 2014 which was converted into an agreement between RS2 Smart Processing and Optimal Payments – a global provider of online and mobile payment processing services to thousands of merchants and millions of consumers across more than 200 countries and territories with over 100 types of payment and multi-currency options. In the meantime, RS2 revealed that negotiations on the second letter of intent are ongoing and are at an advanced stage. Furthermore, the Group is negotiating new letters of intent to provide services to clients within Europe and North America reflecting the increasing demand for RS2’s managed services.
In conclusion, the Directors noted that the Group continues to hold a very strong pipeline of potential clients and the Board remains highly committed in delivering the best results to its shareholders whilst maintaining a positive outlook for the current financial year.