LONDON (Alliance News) - Sustainable pallet maker RM2 International SA on Friday reported lower revenue and a narrowed loss for the first six months of 2018, but said it delivered its principal objectives.
Pretax loss narrowed to USD17.3 million in the six months to June 30 from USD19.2 million a year before, despite revenue falling to USD2.6 million from USD3.7 million. RM2 pretax line benefited from a USD1.4 million net gain on a disposal.
RM2 noted that it completed the simplification of its capital structure and received the first tranche of USD36.0 million in equity funding during the recent period, while also undertaking an open offer to shareholders to raise about USD20.0 million.
RM2 shares were trading down 1.8% at 0.54 pence each on Friday.
RM2 also confirmed the successful completion of a 100-unit trial of the RM2 ELIoT pallet, which was a key objective, along with streamlining customer operations and enacting a reduced cost-base.
"Following the refinancing and simplification of the capital structure in the first half of 2018, the company is focused on the deployment of RM2 ELIoT Smart pallets. We have delivered against our principal objectives, successfully completing initial trials of RM2 ELIoT pallets with significant industry leaders and entering into a Phase 1 contract with a Fortune 500 customer. We are pleased to see that the robust, eco-friendly RM2 ELIoT pallet, with its proprietary tracking technology, is making inroads with global industry leaders, significantly enhancing the efficiency of their supply chains," said Chief Executive Officer Kevin Mazula.
However, as the pursuit of significant long-term contracts is taking longer than anticipated, RM2 said its initial outlook of turning earnings before interest, tax, depreciation and amortization positive in 2019 will be "challenging" to achieve.
Additionally, RM2 added two new members to its board. Andrew Geisse is the former CEO of AT&T Business Solutions and former chief information officer of AT&T Inc. David Binks was CEO of TNT and regional president of FedEx Europe.
Chairman Ian Molson commented:
"I am delighted to nominate two such high calibre individuals to RM2's board. I am confident that both David and Andy will be tremendously valuable additions to the board, bringing a wealth of experience across two vitally important sectors to our business. David's management experience in the logistics industry, coupled with Andy's extensive technology expertise will be of crucial support to RM2 as it continues to advance its long-term strategy and the implementation of its innovative RM2 ELIoT pallets across international markets."
