On 30 August 2023, RS2 plc published its interim financial statements for the six-month period ended 30 June 2023.
Revenues dropped by 6.1% to €17.6 million as the growth achieved by the ‘Processing Solutions’ arm (+3.6% to €10.2 million) and the ‘Merchant Solutions’ business (+12.3% to €1.31 million) was offset the drop in income from ‘Software (Licensing) Solutions’ (-21.2% to €6.14 million).
Operating costs (net of other income) increased by 6.6% to €19.4 million as the higher cost of sales as well as marketing expenses outweighed the lower administrative expenses.
Furthermore, the financial performance was dented by an exchange loss of €0.35 million compared to an exchange gain on operating activities of €2.13 million in the first half of 2022. As a result, RS2 registered an operating loss of €2.12 million compared to an operating profit of €2.71 million in H1 2022. Excluding depreciation and amortisation charges, RS2 registered a negative EBITDA of €0.95 million compared to an EBITDA of €4.15 million in the first half of 2022.
After accounting for net finance costs of €0.14 million, tax charges of €0.36 million, and minority losses of €0.41 million, the net loss for the period attributable to shareholders amounted to €2.20 million compared to a net profit of €1.6 million in H1 2022.
The Statement of Financial Position as at 30 June 2023, when compared to the corresponding figures as at 31 December 2022, shows that total assets contracted by 4.6% (or €2 million) to €41.4 million. Meanwhile, total liabilities increased minimally to €19.5 million. Overall, shareholders’ funds dropped by 7% (or €1.9 million) to just under €26 million.
The board declared a net interim dividend of €0.01315 per ordinary share and of €0.01446 per preference share (equivalent to a total of €3 million) to all shareholders as at close of trading on 13 September 2023. Shareholders can elect to receive the dividend either in cash or through the issuance of new ordinary shares at an attribution price of €1.23 per ordinary share and €1.43 per preference share. The dividend will be paid on 16 November 2023.
The Directors explained that the Group continues to build on its global presence by adding new clients to its portfolio as well as expanding with its current ones into new territories, providing Managed Services to various payment businesses ranging from small payment facilitators and independent sale vendors to large financial enterprises. In addition to the expansion of operations, RS2 Group is scaling and digitalising its operations globally, to be able to deliver against client demand and meet time to market expectations to enable the Group to accelerate its profitability growth.
Tha Board explained that RS2 Group 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 building 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 outlook until end of 2023 is that business will ramp up until the end of the year by way of new business from existing clients as well as new prospective ones.