RM2 narrows losses as it strives towards earnings in 2019

Sustainable smart pallet developer RM2 International issued its audited financial results for the year ended 31 December on Monday, with revenues falling to $6.6m from $8.9m year-on-year.

The AIM-traded firm posted an operating loss after tax for the period of $43.9m, of which $20.7m was said to be non-recurring.

It was still a narrower loss than the $52.8m recorded in the prior financial year.

Since the year ended, the company had raised $36m before fees and expenses by way of a placing.

It also launched an open offer to shareholders on Monday to raise up to around £4.3m before expenses at an issue price of 1p per share.

The company said it was debt-free, with an unrestricted cash balance of $16.7m as at 27 April, adding that it was looking at “significant opportunities” with Fortune 500 companies, including the initial deployment of RM2 ELIoT pallets, and ongoing major trials.

It said converting some of those opportunities, if deployed and financed on schedule, would result in the company generating positive EBITDA in 2019.

“We are focusing the company's sales efforts primarily on new deployment opportunities of RM2 ELIoT Smart Pallets,” said CEO Kevin Mazula.

“Our proposition is unique in helping customers to compress their supply chains.”

Mazula said the firm was successfully completing trials and signing key customer contracts, having worked hard to reduce the cost base by streamlining operating expenses, eliminating non value-added activities and unwinding the operations at the Canadian manufacturing site.

“The successful completion of the $36m equity raise, with the first tranche of $18m having been drawn in mid-April 2018, should enable the company to deploy a sufficient quantity of pallets to generate positive EBITDA in 2019.”