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RS2 plc – Interim Results

Jonathan Falzon

August 29, 2025

29 August, 2025
4 min read
29 August, 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 27 August 2025, RS2 plc published its interim financial statements for the six-month period ended 30 June 2025.

Revenues dropped by 7.9% to €17.6 million (H1 2024: €19.1 million) as the growth achieved by the Merchant Solutions business (+36% to €2.25 million) was offset by the drop in income from Software (Licensing) Solutions (-5.5% to €5.1 million) and the Processing Solutions arm (-15% to €10.2 million).

Operating costs (net of other income) increased by 4.3% to €20.0 million as the higher cost of sales and foreign exchange losses outweighed the lower administrative and marketing expenses. As a result, RS2 registered an operating loss of €2.40 million compared to a loss of €0.08 million in H1 2024. Excluding depreciation and amortisation charges, RS2 registered a negative EBITDA of €0.94 million in contrast to an EBITDA of €1.30 million in the first half of 2024.

Net finance costs decreased by 33% to €0.14 million.

RS2 recorded a pre-tax loss of €2.55 million compared to the loss of €0.29 million in the same period last year. After accounting for minimal tax charges and losses attributable to non-controlling interests of €0.07 million, the net loss for the period attributable to shareholders amounted to €2.56 million compared to the loss of €1.01 million in the first half of 2024.

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets remained virtually unchanged at just under €50 million. Total liabilities increased by 11% (or €2.8 million) to €28.2 million as total debt climbed to €10 million. Shareholders’ funds dropped by 8.7% (or €2.2 million) to €23.7 million.

Outlook

The Directors explained that reduction in revenue for the first half of the year is primarily attributable to the timing of contract signings, including the suspension of the US acquirer project as announced in mid-2024. These contracts are expected to materialise in the second half of the year, positioning the Group to deliver revenues above last year on a full-year basis. Furthermore, the Group remains focused on cost effectiveness in its operations coupled with the benefits of economies of scale, particularly in the Managed Services Solutions and Merchant Solutions. The Board anticipates that this will result in significantly improved profitability when taking into consideration the approved budgets covering periods 2025 to 2027

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 27 August 2025, RS2 plc published its interim financial statements for the six-month period ended 30 June 2025.

Revenues dropped by 7.9% to €17.6 million (H1 2024: €19.1 million) as the growth achieved by the Merchant Solutions business (+36% to €2.25 million) was offset by the drop in income from Software (Licensing) Solutions (-5.5% to €5.1 million) and the Processing Solutions arm (-15% to €10.2 million).

Operating costs (net of other income) increased by 4.3% to €20.0 million as the higher cost of sales and foreign exchange losses outweighed the lower administrative and marketing expenses. As a result, RS2 registered an operating loss of €2.40 million compared to a loss of €0.08 million in H1 2024. Excluding depreciation and amortisation charges, RS2 registered a negative EBITDA of €0.94 million in contrast to an EBITDA of €1.30 million in the first half of 2024.

Net finance costs decreased by 33% to €0.14 million.

RS2 recorded a pre-tax loss of €2.55 million compared to the loss of €0.29 million in the same period last year. After accounting for minimal tax charges and losses attributable to non-controlling interests of €0.07 million, the net loss for the period attributable to shareholders amounted to €2.56 million compared to the loss of €1.01 million in the first half of 2024.

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024, shows that total assets remained virtually unchanged at just under €50 million. Total liabilities increased by 11% (or €2.8 million) to €28.2 million as total debt climbed to €10 million. Shareholders’ funds dropped by 8.7% (or €2.2 million) to €23.7 million.

Outlook

The Directors explained that reduction in revenue for the first half of the year is primarily attributable to the timing of contract signings, including the suspension of the US acquirer project as announced in mid-2024. These contracts are expected to materialise in the second half of the year, positioning the Group to deliver revenues above last year on a full-year basis. Furthermore, the Group remains focused on cost effectiveness in its operations coupled with the benefits of economies of scale, particularly in the Managed Services Solutions and Merchant Solutions. The Board anticipates that this will result in significantly improved profitability when taking into consideration the approved budgets covering periods 2025 to 2027.