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RS2 plc – Full-Year Results

Jonathan Falzon

April 25, 2025

25 April, 2025
4 min read
25 April, 2025
4 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 23 April 2025, RS2 plc published its Annual Report & Financial Statements for the year ended 31 December 2024.

Total revenue fell by 5.4% to €37.5 million as the declines in ‘Software (Licensing) solutions’ (-11% to €10.5 million) and ‘Processing solutions’ (-6% to €23.4 million) outweighed the growth in ‘Merchant solutions’ (+23% to €3.7 million).

Operating costs fell by 7.8% to €35 million as the higher level of cost of sales was offset by lower administrative and marketing expenses. Furthermore, the Group recorded favourable foreign exchange movements in contrast to foreign exchange losses in the prior year. As a result, operating profit climbed nearly 50% to €2.54 million (2023: €1.70 million). Excluding depreciation and amortisation charges, EBITDA increased by 31% to €5.43 million and the EBITDA margin improved to 14.5% from 10.4% in the previous year.

After accounting for net finance costs of €0.39 million, tax expenses of €1.24 million, and a profit of €0.86 million attributable to minority interests, the net profit attributable to the shareholders amounted to €0.04 million compared to a loss of €0.51 million in the previous year.

The Statement of Financial Position as of 31 December 2023 shows that total assets remained virtually unchanged at €49.1 million with minimal changes across assets. Total liabilities fell by 3% to €25.4 million as the reduction in borrowings (-25% to €5.4 million) outweighed the increase in lease liabilities (+12% to €2.6 million). Shareholders’ funds remained practically unchanged at €26 million.

Outlook

In his commentary, RS2’s CEO stated that 2025 is shaping up to be a year of significant innovation and change with focus on making payments more convenient, secure, and personalised for consumers. RS2 will continue to concentrate on implementing and delivering its strategy around its main business pillars of growing and expanding the managed service business, ramping up the US expansion and growing its own direct acquiring business. The Group is also investing further in its infrastructure to strengthen the technology and complete the product to play a more active role in the digitalisation of the whole customer journey, to offer omni-channel solutions and go beyond traditional payment solutions.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 23 April 2025, RS2 plc published its Annual Report & Financial Statements for the year ended 31 December 2024.

Total revenue fell by 5.4% to €37.5 million as the declines in ‘Software (Licensing) solutions’ (-11% to €10.5 million) and ‘Processing solutions’ (-6% to €23.4 million) outweighed the growth in ‘Merchant solutions’ (+23% to €3.7 million).

Operating costs fell by 7.8% to €35 million as the higher level of cost of sales was offset by lower administrative and marketing expenses. Furthermore, the Group recorded favourable foreign exchange movements in contrast to foreign exchange losses in the prior year. As a result, operating profit climbed nearly 50% to €2.54 million (2023: €1.70 million). Excluding depreciation and amortisation charges, EBITDA increased by 31% to €5.43 million and the EBITDA margin improved to 14.5% from 10.4% in the previous year.

After accounting for net finance costs of €0.39 million, tax expenses of €1.24 million, and a profit of €0.86 million attributable to minority interests, the net profit attributable to the shareholders amounted to €0.04 million compared to a loss of €0.51 million in the previous year.

The Statement of Financial Position as of 31 December 2023 shows that total assets remained virtually unchanged at €49.1 million with minimal changes across assets. Total liabilities fell by 3% to €25.4 million as the reduction in borrowings (-25% to €5.4 million) outweighed the increase in lease liabilities (+12% to €2.6 million). Shareholders’ funds remained practically unchanged at €26 million.

Outlook

In his commentary, RS2’s CEO stated that 2025 is shaping up to be a year of significant innovation and change with focus on making payments more convenient, secure, and personalised for consumers. RS2 will continue to concentrate on implementing and delivering its strategy around its main business pillars of growing and expanding the managed service business, ramping up the US expansion and growing its own direct acquiring business. The Group is also investing further in its infrastructure to strengthen the technology and complete the product to play a more active role in the digitalisation of the whole customer journey, to offer omni-channel solutions and go beyond traditional payment solutions.