![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Rm2 International S.a. | LSE:RM2 | London | Ordinary Share | LU1914372336 | ORD USD0.01 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 8.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMRM2
RNS Number : 0099L
RM2 International SA
28 September 2016
28 September 2016
RM2 International S.A.
Interim Results
RM2 International S.A. ("RM2" or the "Company"), the sustainable composite pallet innovator, announces its unaudited results for the six months to 30 June 2016.
Financial Highlights
-- Revenues for the first six months of 2016 of US$3.7 million (H1 2015: US$1.8 million) -- Loss after tax for the period of US$24 million (H1 2015: US$25.0 million) -- Debt free with cash balances of US$4.3 million at 30 June 2016 (H1 2015: US$35.9 million) and US$20.4 million at 31 August 2016 -- After the reporting period end, issuance of US$20 million of convertible preferred shares with a cumulative preferred 9% annual dividend on July 18(th) , 2016
Operational Highlights
-- Recurring revenues being generated from customers across a range of key industries -- Long-term, scalable contracts signed with some of the largest and most recognisable companies in their sectors -- Management team strengthened with the appointment of Kevin Mazula as COO -- Commencement of pallet deployment with Canada's largest retailer, Loblaw's -- Strategic, cost-saving manufacturing agreement with Zhenshi Group for pallet production in China -- After the reporting period end, second contract manufacturing agreement for pallet production in Mexico with Jabil Circuits Inc.
John Walsh, Chief Executive Officer of RM2, commented:
"The first half of 2016 has been a period of significant strategic progress for RM2. In March, Canada's largest retailer, Loblaw's, began accepting RM2's pallets in its supply chain. This was quickly followed by an agreement with Zhenshi for the production of our pallets in China at a significantly reduced cost. After the period end, we struck a further agreement with Jabil for the mass production of our pallets in Mexico. When fully operational, this will mean that RM2 will have a well-balanced manufacturing capability in both North America and Asia, allowing us to flex production more efficiently between two highly qualified and professional manufacturers to better meet the demands of our customers.
"Demand for our innovative and environmentally friendly BLOCKPal pallet remains strong and we are in advanced discussions with a number of new customers. We expect to make a number of further announcements in the coming months."
For further information, please contact:
+44 (0)20 8820 RM2 International S.A. 1412 John Walsh, Chief Executive Officer Jean-Francois Blouvac, Chief Financial Officer +44 (0)20 7397 RBC Capital Markets 8900 Tristan Lovegrove Jonathan Hardy Ema Jakasovic +44 (0)20 7638 Citigate Dewe Rogerson 9571 Simon Rigby Rob Newman Ellen Wilton
Notes to Editors
RM2 International S.A. specialises in pallet development, manufacture, supply and management to establish a leading presence in global pallet supply and improve the supply chain of manufacturing and distribution businesses through the effective and efficient use and management of composite pallets. It is quoted on the AIM market of the London Stock Exchange under the symbol RM2.L.
For further information, please visit www.rm2.com
Consolidated Statement of Comprehensive Income
Six months Six months Year to to to 31 December 30 June 30 June 2015 2016 2015 Audited Unaudited Unaudited Notes (Restated) USD USD USD Continuing operations Revenue 5 3,707,836 1,771,391 8,000,137 Cost of sales 6 (16,845,329) (17,187,856) (44,512,394) ------------- ------------- ------------- Gross profit (13,137,494) (15,416,465) (36,512,257) Administrative expenses 7 (10,625,475) (10,287,482) (21,380,565) Other operating expenses 8 (36,132) (64,014) (175,768) Other operating income 8 142,151 740,357 904,676 ------------- ------------- ------------- Operating loss (23,656,950) (25,027,604) (57,163,914) Impairment of financial asset Finance costs (2,179,083) (867,840) (3,632,886) Finance income 1,936,151 659,861 1,955,972 ------------- ------------- ------------- Loss before tax (23,899,882) (25,235,583) (58,840,828) Income tax 87,907 (172,828) 160,230 ------------- ------------- ------------- Loss for the period (23,811,975) (25,408,411) (58,680,598) ============= ============= ============= Other comprehensive income Other comprehensive income to be reclassified in profit or loss in subsequent periods: ------------- ------------- ------------- Exchange difference on translation of foreign operations (201,940) (1,527,059) (4,264,343) ------------- ------------- ------------- Other comprehensive income for the year, net of tax (201,940) (1,527,059) (4,264,343) Total comprehensive income for the year (24,013,915) (26,935,470) (62,944,941) ============= ============= ============= Loss for the year attributable to: Equity holders of the parent (23,811,975) (25,408,411) (58,680,598) Total comprehensive income for the year attributable to: Equity holders of the parent (24,013,915) (26,935,470) (62,944,941) Losses per share Basic losses per share attributable to ordinary equity holders of the parent 17 (0.06) (0.08) (0.17) Diluted losses per share attributable to ordinary equity holders of the parent 17 (0.06) (0.08) (0.17) ============= ============= =============
Consolidated Statement of Financial Position
30 June 30 June 31 December 2016 2015 2015 Notes Unaudited Unaudited Audited USD USD USD Assets Non-current assets Property, plant & equipment - others 9 41,803,207 35,710,996 36,252,950 Property, plant & equipment - pallet pool 10 16,997,686 10,844,907 17,484,281 Investment property 1,338,940 1,371,280 1,357,720 Intangible assets 11 2,646,054 3,006,148 3,349,359 62,785,888 50,933,332 58,444,310 Current assets Inventories 12 21,863,720 15,985,591 19,846,627 Trade and other receivables 5,012,559 5,179,826 8,315,843 Other current financial assets 67,624 74,310 62,074 Prepayments 664,068 808,044 1,942,980 Restricted cash 1,951,144 2,027,062 1,816,039 Cash and cash equivalents 4,282,928 35,860,977 34,515,597 -------------- -------------- -------------- 33,842,043 59,935,811 66,499,160 Total assets 96,627,931 110,869,142 124,943,470 ============== ============== ============== Equity and liabilities Equity Issued capital 16 3,980,302 3,230,302 3,980,302 Share premium 16 263,317,090 219,357,851 263,317,090 Retained earnings (200,106,113) (143,021,951) (176,294,138) Share based payment reserve 19,585,089 18,339,362 19,044,095 Foreign currency translation reserve (330,207) (128,322) (2,865,606) Treasury Stock (3,424) (3,424) (3,424) -------------- Equity attributable to equity holders of the parent 86,442,737 97,773,818 107,178,319 Non-current liabilities Interest bearing loans and borrowings 15 1,848,920 2,030,092 1,844,875 Deferred tax liabilities 46,949 251,493 184,330
-------------- 1,895,869 2,281,585 2,029,205 Current liabilities Interest bearing loans and borrowings 15 58,034 18,680 116,440 Trade and other payables 14 7,037,065 9,789,422 14,466,289 Deferred income 661,673 634,004 630,841 Current tax liabilities 532,554 371,453 522,376 8,289,325 10,813,739 15,735,946 Total liabilities 10,185,194 13,095,324 17,765,151 Total equity and liabilities 96,627,931 110,869,142 124,943,470 ============== ============== ==============
Consolidated statement of changes in equity
Attributable to equity holders of the parent Foreign Share currency Treasury based Share Share Retained translation Shares payment Total capital premium earnings reserve reserve equity USD USD USD USD USD USD USD As at 31 December 2014 (audited) 3,227,772 219,357,851 (117,613,540) 1,398,737 - 16,958,803 123,329,623 Loss for the period - - (25,408,411) - - - (25,408,411) Other comprehensive income - - - (1,527,059) - - (1,527,059) ---------------- ---------- ------------ -------------- ------------- ----------- ----------- ------------- Total comprehensive income - - (25,408,411) (1,527,059) - - (26,935,470) Shares issued in the period 2,530 - - - - - 2,530 Purchase of shares into treasury - - - - (3,424) - (3,424) Share based payments - - - - - 1,380,559 1,380,559 Transaction with owners 2,530 - - - (3,424) 1,380,559 1,379,665 As at 30 June 2015 (unaudited) 3,230,302 219,357,851 (143,021,951) (128,322) (3,424) 18,339,362 97,773,818 ================ ========== ============ ============== ============= =========== =========== ============= Loss for the period - - (33,272,187) - - - (33,272,187) Other comprehensive income - - - (2,737,284) - - (2,737,284) ---------------- ---------- ------------ -------------- ------------- ----------- ----------- ------------- Total comprehensive income - - (33,272,187) (2,737,284) - - (36,009,471) Shares issued in the period 750,000 44,672,999 - - - - 45,422,999 Cost of share issue - (713,760) - - - - (713.760) Share based payments - - - - - 704,733 704,733 Transaction with owners 750,000 43,959,239 - - - 704,733 45,413,972 As at 31 December 2015 (audited) 3,980,302 263,317,090 (176,294,138) (2,865,606) (3,424) 19,044,095 107,178,319 ================ ========== ============ ============== ============= =========== =========== ============= Loss for the period - - (23,811,975) - - - (23,811,975) Other comprehensive income - - - 2,535,399 - - 2,535,399) ---------------- ---------- ------------ -------------- ------------- ----------- ----------- ------------- Total comprehensive income - - (23,811,411) 2,535,399 - - (21,276,576) Share based payments - - - - - 540,994 540,994 Transaction with owners - - - - - 540,994 540,994 As at 30 June 2016 (audited) 3,980,302 263,317,090 (200,106,113) (330,207) (3,424) 19,585,089 86,442,736 ================ ========== ============ ============== ============= =========== =========== =============
Consolidated Statement of Cash Flows
Six months Six months Year to to ended 30 June 30 June 31 December 2016 2015 2015 Notes Unaudited Unaudited Audited Cash flows from operating USD activities USD USD Loss before tax (23,899,882) (25,235,583) (58,840,828) Adjustment to reconcile profit before tax to net cash flows Amortisation and depreciation of non-current assets 4,440,260 2,567,701 6,835,642 Provision for bad debts 44,902 90,750 - Share based payment charges 540,994 1,380,559 2,085,292 Transaction costs on capital - - - operations, including IPO Finance income (68,726) (67,166) (68,726) Finance expenses 60,240 25,608 60,240 Unrealised foreign exchange gains 256,062 817,728 (355,126) Net loss/(gain) on disposal of PPE and intangible assets 5,797 (421,682) (435,591) Variation in working capital (Increase)/decrease in inventories (2,017,093) (8,968,403) (12,829,439) Decrease/(increase)/in trade and other receivables 4,544,547 642,028 (3,541,287) Increase/(decrease) in trade and other payables (7,398,391) 3,509,526 8,759,729 Decrease/(increase)/ in restricted cash (135,105) - 333,936 Income tax paid (15,336) (90,450) (171,882) Net cash flows from operating activities (23,641,731) (25,749,384) (58,168,040) Cash flows from investing activities Net purchase of from intangible assets (18,066) - (900,035) Purchase of PPE in course of commissioning (1,469,914) (8,666,039) (15,578,162) Net purchase of other PPE (3,474,426) (2,819,557) 60,507 Purchase of pallet pool (1,668,992) (8,842,115) (17,895,718) Loans granted to third parties (5,552) (14,762) (2,524) Finance income received 68,726 67,166 68,726 Net cash flows from investing activities (6,568,224) (20,275,307) (34,247,206) Cash flows from financing activities Issuance of capital 16 - 2,530 45,425,529 Purchase of treasury shares - (3,424) (3,424) Transaction costs on capital operations, charged against share premium account 16 - - (713,760) Proceeds from other and related party borrowings 70,284 (3,223) Repayment of other and related party borrowings (54,361) (28,273) (117,575) Finance costs (60,240) (25,608) (60,240) Net cash flows from financing activities (114,601) 15,509 44,527,307 Net change in cash and cash equivalents (30,324,556) (46,009,182) (47,887,939) ============= ============= ============== Increase/decrease in cash and cash equivalents (30,324,558) (46,009,182) (47,887,939) Cash and cash equivalents at 1 January 34,515,597 82,882,794 82,882,794 Exchange adjustment of cash and cash equivalents 91,887 (1,012,635) (479,258) ------------- ------------- -------------- Cash and cash equivalents at end of period 4,282,928 35,860,977 34,515,597
============= ============= ==============
Notes (unaudited) to the Interim Consolidated Financial Information
Corporate information
RM2 International S.A. (the "Company") is a limited company (Société Anonyme) incorporated and domiciled in Luxembourg with the registration number B132.740. The registered office is located at Rue de la Chapelle 5, L1235 Luxembourg. The Company is the ultimate parent entity of the RM2 Group (the "Group").
The Group is principally engaged in developing, leasing and selling shipping pallets and in providing related logistical services.
This unaudited interim consolidated financial information does not constitute statutory accounts.
Basis of preparation
While being compliant with AIM Rule 18 minimum requirements, the unaudited interim consolidated financial information does not include all the information and disclosures required in the annual financial information, and should be read in conjunction with the Group's historical financial information for the year ended 31 December 2015.
The accounting policies and basis of preparation adopted are consistent with those followed in the preparation of the Group's historical financial information for the year ended 31 December 2015. None of the newly applicable IFRS standards and amendments had an impact on the Group's interim consolidated financial information.
Early adopted standards
The Group did not early adopt any new or amended standards and does not plan to early adopt any of the standards issued but not yet effective.
Significant accounting judgements, estimates and assumptions
When preparing the unaudited interim consolidated financial information, Management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by Management, and will seldom equal the estimated results.
The judgements, estimates and assumptions applied in the interim consolidated financial information, including the key sources of estimation uncertainty, were the same as those applied in the Group's historical financial information for the years ended 31 December 2015.
Going Concern
The Group's financial result for the first half of 2016 was a loss of USD 24.0m and the cash outflow was USD 30.2m, mainly attributable to the manufacturing activity during the first three months of the year. Cash reserves at 30 June 2016 were USD 4.3m. Following the receipt of the proceeds from the issuance of convertible preferred shares, the cash balance at 31 August 2016 was USD 18.4m, excluding restricted cash.
The financial performance of the Group was again heavily impacted by manufacturing activities during the first quarter. The re-sizing of the manufacturing operations in Canada, initiated in early January 2016, generated a drop in the cost per unit by circa 20%, but the absolute value of production cost remained too high to be sustainable. The factory produced significantly above the standard cost, contributing more than USD 12.0m to the operating loss of USD 24.0m. Following the suspension of production in Canada, the plant's headcount continues to decrease, and at end of August 2016 was down to 53. The plant's cash outflow consists of payroll, rental of building and clearing the accounts payables backlog and is now below USD 900,000 per month.
The precise timing of the commencement of manufacturing in China is principally dependent on the lead-time required to clear customs for the equipment sent from Canada. The pultrusion machines shipped from Canada on July 15(th) are currently awaiting customs clearance in Shanghai. The Group is actively working with Zhenshi on revisions to their agreements arising from the review by the Customs authorities and on preparing answers to other queries raised by the Customs authorities. Once these matters are attended to and the initial shipment is cleared, the Group will send further Fabrication, Assembly and Coating equipment to China. The equipment will be housed in a 20,000 square metre facility to be built out by an affiliate of Zhenshi. The RM2 production process will utilise 10,000 square metres, leaving spare capacity for future expansion.
The commercial pipeline remains promising and the inventory built prior to the cessation of production is being allocated to major customers. A significant sale of pallets, to be delivered in Q4 2016 is under signature process with a major US-based company. The Group continues to conduct pre-sale trials in the US of its BLOCKpal product among international companies in retail, food & frozen industries and FMCG sectors.
The business plan and cash flow forecast for the next 12-month period starting from June 1, 2016 which is considered as the going concern analysis period, have been updated by management using the same conservative assumptions used in the last going concern assessment. Management confirmed recurring net cash outflows of c. USD 2.0m per month (including both commercial entities and the plant). The expected sale of pallets in Q4 2016 is not factored into the net monthly cash outflow of USD 2.0m and could bring additional cash inflows up to USD1.0m per month in the course of 2017, subject to the delivery schedule required by the customer. The one-time-costs relating to the transition to China previously estimated at USD 8.8m now amount to USD 9.9m as the Group has decided to upgrade some equipment before commissioning. At the end of August, only USD 1.6m has been paid regarding these one-time-costs.
While there are currently material uncertainties as mentioned in the FY2015 financial statements which may cast significant doubt on the Group's ability to continue as a going concern, it is possible that the Group may be unable to realize its assets and discharge its liabilities in the normal course of business. Management has, however, identified four strategic cash-contribution-projects, any one of which will contribute significantly to ensuring the going concern of the Group. In addition to the significant sale of pallets to be delivered before year-end, management has undertaken a better monetization of the current pool of pallets and the real estate building in Switzerland. Further, management continues to work towards the placement of an additional USD 10.0m of convertible preferred shares as authorized by the General Assembly. Depending on which combination of these initiatives is realized and their related size, the Group may recognize by year-end adequate accounting impairment (non-cash items) on the values of these assets. However, these four items allow the Group to confirm its confidence in the going concern status of the Company through June 2017 and beyond. These assumptions are the Directors' best estimate of the future development of the business. The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future and accordingly, continue to adopt the going concern basis in preparing the consolidated financial statements.
Business review and Key Performance Indicators
The business report considers the key performance indicators to be the levels of production, the sales or leasing of pallets and the cash reserves of the business.
Following the signature of the manufacturing agreement with the Chinese partner Zhenshi in April 2016, the Group initiated the decommissioning of equipment at the Canadian manufacturing site as of 4 April, 2016, producing only marginal quantities of samples, with determination of the future of the Canadian site remaining for further consideration by the Board. Approximately 92,000 pallets were produced in Canada in the first four months of 2016. The addition of new manufacturing equipment as forecasted amounted to USD 5.0m., bringing the net book value of industrial assets to USD 40.0m.
As the Group moves toward an outsourced production model, the Group has carefully managed the inventory and the commercial deployment over the first half of 2016. 20,000 pallets have been deployed in the field, taking the total active pool size to 250,000 pallets. The pallet inventory has grown to 160,000 pallets, which will be allocated to future contracts until outsourced production starts in the course of 2017. The revenue generated by the lease activity in the first half of 2016 was USD 2.7m, which almost equals the full year 2015 rental revenue. The Group expects to contract a significant sale of pallets in the last quarter.
The Group has announced the issuance of convertible preferred shares with a cumulative preferred 9% dividend payable each year, which has been supported by existing investors for USD 20.0m. Funds were received on July 18(th) , 2016.
Cash reserves, excluding restricted cash, at 30 June 2016 were USD 4.3m (Dec 2015 USD 34.5m).
Cash reserves, excluding restricted cash, at 31 August 2016 were USD 18.4m.
Significant events and transactions
The Group's management believes that the Group is well positioned despite the continuing difficult economic circumstances. Factors contributing to the Group's manageable position are:
-- No significant decline in order intake was experienced on larger projects. Further, the Group has several long-term contracts with a number of its customers -- The Group has entered deep discussions with major banks to set up a large financing that will enable the Group to produce and deploy a significant number of pallets -- The Group's major customers have not experienced financial difficulties. Credit quality of trade receivables as at 30 June 2016 is considered to be good
Overall, the Group is in a manageable position thanks to a high quality commercial pipeline, which will be deployed in a profitable way once an adequate financing is in place. The Group's objectives and policies for managing capital, credit risk and liquidity risk are described in its recent annual financial statements.
Revenues and segment reporting
The Group has only one operating segment for the disclosure of revenue. However the revenue analysis is broken down by revenue stream as disclosed here below.
Operating segment is reported in a manner consistent with the internal reporting used by the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segment, has been identified as the Board of Directors of the parent company that makes strategic decisions.
The Group has determined the operating segments based on the reports reviewed by the Board of Directors, which are used to make strategic decisions.
The Board of Directors is responsible for the Group's entire business and considers the business to have a single operating segment that represent the production, the sale and the rent of pallets including related logistical services. The asset allocation decisions are based on a single, integrated investment strategy, and the Group's performance is evaluated on an overall basis.
The internal reporting provided to the Board of Directors for the Group's assets, liabilities and performance is prepared on a consistent basis with the measurement and recognition principles of IFRS.
There were no changes in the reportable segments during the year.
The Group has a diversified customer portfolio. During the period there was 1 client who represents more than 10% of the Group's revenues.
Turnover
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Sold pallets 288,520 215,828 3,755,015 Leased pallets 2,722,840 816,221 2,740,530 Rendering of logistical services 696,476 739,342 1,504,592 ---------------- ---------------- ------------- 3,707,836 1,771,391 8,000,137 ================ ================ =============
Geographical information
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited USA 2,811,930 856,565 6,308,906 Europe 895,906 914,826 1,691,232 3,707,836 1,771,391 8,000,137 ================ ================ =============
The parent company is based in Luxembourg. The information for the geographical area of non-current assets are presented for the most significant areas where the group has operations, being Luxembourg (country of domicile), rest of Europe and North America.
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Luxembourg 2,280,246 2,247,274 3,249,373 Rest of Europe 6,425,322 8,095,908 6,379,028 North America 54,080,320 40,590,150 48,815,909 ---------------- ---------------- ------------- 62,785,888 50,933,332 58,444,310 ================ ================ =============
Non-current assets for this purpose consist of property, plant and equipment, investment properties and intangible assets.
Cost of sales
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Cost of pallets sold - blockpall 238,726 152,668 2,128,000 Cost of pallets sold - services 112,162 162,384 279,748 Amortization of pallet pool 2,241,473 619,244 2,293,955 Cost of software, licenses and services 691,405 734,892 1,551,590 Factory absorption 12,042,106 14,485,152 32,325,152 Impairment and repairs (7,831) - 1,921,988 Other 1,527,288 1,033,516 4,011,961 ---------------- ---------------- ------------- 16,845,329 17,187,856 44,512,394 ================ ================ =============
Factory absorption is the variance between actuals costs to produce pallets and the standard costs used in valuing the pallets produced in inventory and assets. The total cost of the production facility for which the total manufacturing capacity is circa 3 million pallets was not fully absorbed by production in the year and the under absorption is shown as a cost of sales.
Administrative expenses
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Administration payroll 1,084,038 1,102,090 1,939,126 Selling and distribution 5,023,559 3,997,019 9,853,251 Share based payment (non-cash item) 540,994 1,380,559 2,085,292 Depreciation 959,716 772,420 1,354,516 Other 3, 017,167 3,035,394 6,148,380 10,625,475 10,287,482 21,380,565 ================ ================ =============
Other operating income and expenses
Other operating income Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Net gain/ (loss) on disposal of PPE - 421,682 435,591 Rental income 142,151 153,683 289,570 Other - 164,992 179,515 ---------------- ---------------- ------------- Total other operating income 142,151 740,357 904,676 ================ ================ ============= Other operating expenses Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited Direct operating expenses on rental-earning investment properties 36,132 12,934 124,688 Other - 51,080 51,080 ---------------- ---------------- ------------- Total other operating expenses 36,132 64,014 175,768 ================ ================ =============
Property, plant and equipment- other
Land & Plant Construction Total Building & Equipment in progress USD USD USD USD Cost As at 31 December 2014 (audited) 1,737,167 21,613,060 9,048,229 32,398,456 Additions - 3,241,239 8,666,039 11,907,278 Exchange differences (6,521) (1,039,920) (324,687) (1,371,128) As at 30 June 2015 (unaudited) 1,730,646 23,814,379 17,389,581 42,934,606 Additions 26,952 (2,893,107) 6,912,123 4,045,967 Disposals - (23,469) - (23,469) Other / transfers - 8,648,204 (8,648,204) - Exchange differences (11,371) (1,879,609) (565,969) (2,456,950) ---------- ------------- ------------- ------------ As at 31 December 2015 (audited) 1,746,227 27,666,398 15,087,531 44,500,155 Additions - 3,474,469 1,469,914 4,944,383 Disposals - (30,654) - (30,654) Other/transfer - 3,037,026 (3,037,026) - Exchange differences 8,438 1,603,138 914,718 2,526,294 ---------- ------------- ------------- ------------
As at 30 June 2016 (unaudited) 1,754,665 35,750,376 14,435,137 51,940,178 ========== ============= ============= ============ Depreciation and impairment ---------- ------------- ------------- ------------ As at 31 December 2014 (audited) 171,447 2,429,000 3,537,463 6,137,910 Depreciation charge for the period 32,240 1,153,426 - 1,185,666 Exchange differences (530) (99,436) - (99,966) As at 30 June 2015 (unaudited) 203,157 3,482,990 3,537,463 7,223,610 Depreciation charge for the period 29,415 1,297,725 - 1,327,140 Disposals - (23,469) - (23,469) Impairment charge for the year - 87,062 - 87,062 Exchange differences (2,553) (364,586) - (367,139) ---------- ------------- ------------- ------------ As at 31 December 2015 (audited) 230,019 4,479,722 3,537,463 8,247,204 Depreciation charge for the period 33,151 1,698,761 - 1,731,912 Disposal - (24,857) - (24,857) Exchange differences 1,373 181,338 - 182,711 ---------- ------------- ------------- ------------ As at 30 June 2016 (unaudited) 264,543 6,334,964 3,537,463 10,136,970 ========== ============= ============= ============ Net book value As at 30 June 2016 (unaudited) 1,490,122 29,415,412 10,897,673 41,803,208 ========== ============= ============= ============ As at 31 December 2015 (audited) 1,516,208 23,186,675 11,550,067 36,252,951 ========== ============= ============= ============ As at 30 June 2015 (unaudited) 1,527,489 20,331,389 13,852,118 35,710,996 ========== ============= ============= ============
Property, plant and equipment - Pallet pool
Pallet Pool USD Cost ----------- As at 31 December 2014 (audited) 2,886,081 Additions 8,842,115 As at 30 June 2015 (unaudited) 11,728,197 Additions 9,053,602 As at 31 December 2015 (audited) 20,781,799 Additions 1,668,994 As at 30 June 2016 (unaudited) 22,450,793 =========== Depreciation and impairment ----------- As at 31 December 2014 (audited) 131,575 Depreciation charge for the period 751,713 As at 30 June 2015 (unaudited) 883,288 Depreciation charge for the period 2,414,230 As at 31 December 2015 (audited) 3,297,518 Depreciation charge for the period 2,155,588 As at 30 June 2016 (unaudited) 5,453,106 =========== Net book value As at 30 June 2016 (unaudited) 16,997,687 =========== As at 31 December 2015 (audited) 17,484,281 =========== As at 30 June 2015 (unaudited) 10,844,909 ===========
Intangible assets
Software Trade Customer Acquired Goodwill Total names relationships licences and similar intangible assets USD USD USD USD USD USD Cost As at 31 December 2014 (audited) 2,679,607 155,328 465,983 297,033 1073,153 4,671,104 Additions - - - - - - Exchange differences 32,010 1,856 5,567 - 12,819 52,252 ---------- --------- --------------- ------------ ---------- ---------- As at 30 June 2015 (unaudited) 2,711,617 157,184 471,550 297,033 1,085,972 4,723,356 ========== ========= =============== ============ ========== ========== Additions - - - 900,035 - 900,035 Exchange differences (158,130) (9,167) (27,499) - (63,329) (258,125) ---------- --------- --------------- ------------ ---------- ---------- As at 31 December 2015 (audited) 2,553,487 148,017 444,051 1,197,068 1,022,643 5,365,266 Additions - - - 18,065 - 18,065 Exchange differences (243,192) (14,097) (42,291) - (97,396) (396,975) ---------- --------- --------------- ------------ ---------- ---------- As at 30 June 2016 (unaudited) 2,310,295 133,920 401,760 1,215,133 925,247 4,986,356 ========== ========= =============== ============ ========== ========== Depreciation and impairment As at 31 December 2014 (audited) 893,131 31,062 93,186 47,032 - 1,064,411 Amortization charge for the period 421,670 45,855 137,566 - - 605,090 Exchange differences 41,009 1,675 5,023 - - 47,707 ---------- --------- --------------- ------------ ---------- ---------- As at 30 June 2015 (unaudited) 1,355,810 78,592 235,775 47,032 - 1,717,208 ========== ========= =============== ============ ========== ========== Amortization charge for the period 457,348 (15,283) (45,849) 29,732 - 425,948 Exchange differences (110,838) (4,106) (12,306) - - (127,250) ---------- --------- --------------- ------------ ---------- ---------- As at 31 December 2015 (audited) 1,702,319 59,203 177,620 76,764 - 2,015,906 Amortization charge for the period 406,958 14,154 42,462 70,450 - 605,090 Exchange differences (184,031) (6,397) (19,202) - - 47,707 ---------- --------- --------------- ------------ ---------- ---------- As at 30 June 2015 (unaudited) 1,925,246 66,960 200,880 147,214 - 2,340,301 ========== ========= =============== ============ ========== ========== Net book value As at 30 June 2016 (unaudited) 385,049 66,960 200,880 1,067,919 925,247 2,646,054 ========== ========= =============== ============ ========== ========== As at 31 December 2015 (audited) 851,168 88,814 266,431 1,120,304 1,022,643 3,349,359 ========== ========= =============== ============ ========== ========== As at 30 June 2015 (unaudited) 1,355,807 78,592 235,775 250,001 1,085,972 3,006,148 ========== ========= =============== ============ ========== ==========
*Goodwill relates to the Equipment Tracking acquisition in 2013
Inventories
As at As at As at 30 June 30 June 31 December 2016 Unaudited 2015 Unaudited 2015 Audited USD USD USD Raw Material 6,908,874 7,314,957 10,456,947 Work in process 1,874,083 2,761,851 2,268,138 Finished pallets 13,080,763 5,908,783 7,121,542 ---------------- ---------------- ---------------- Total inventory 21,863,720 15,985,591 19,846,627 ================ ================ ================
Trade receivables
As at As at As at 30 June 30 June 31 December 2016 Unaudited 2015 Unaudited 2015 Audited USD USD USD Trade receivables 2,134,719 1,491,809 3,541,955 Income tax receivables 7,317 3,178 66 Other tax receivables 1,251,627 2,845,690 2,373,410 Other receivables 1,618,895 839,149 2,400,412 ---------------- ---------------- -------------- Total Trade receivables 5,012,559 5,179,826 8,315,843 ================ ================ ==============
Trade payables
As at As at As at 30 June 30 June 31 December 2016 Unaudited 2015 Unaudited 2015 Audited USD USD USD Trade payables 5,034,648 7,519,744 12,139,283 Employee compensation payables 67,870 947,848 270,431 Current tax liabilities 243,717 750,556 423,531 Other payables 1,690,828 571,274 1,633,044 ---------------- ---------------- -------------- Total Trade payables 7,037,064 9,789,422 14,466,289 ================ ================ ==============
Interest-bearing loans and borrowings
As at As at As at Effective 30 June 30 June 31 December interest Maturity 2016 2015 2015 rate date Unaudited Unaudited Audited USD USD USD Non-current interest-bearing loans and borrowings CHF 1,875,000 Bank 1.8 30 November loan % 2020 1,840,885 2,020,661 1,814,060 (The loan is secured by a mortgage on the building held by the Group in Switzerland.) Hire purchase liabilities in excess of one year 8,035 9,431 30,815 Total non-current interest-bearing loans and borrowings 1,848,920 2,030,092 1,844,875 ============ ============ ============= Current interest-bearing loans and borrowings Short-term part of long term bank loan Variable On-demand 50,000 - 100,000 Hire purchase liabilities in excess of one year 8,034 18,860 16,440 ------------ Total current interest-bearing loans and borrowings 58,034 18,860 116,440 ============ ============ ============= Total interest-bearing loans and borrowings 1,906,954 2,048,952 1,961,315 ============ ============ =============
Share capital and reserves
2016
There have been no issues of shares during the period.
2015
On 12 March 2015, 253,000 restricted shares were granted to certain employees. The restricted shares vest three years from the date of grant if the recipients are still employed by the Group at such time.
On 17 June 2015, the Company repurchased 333,334 previously issued restricted shares. These shares are held as non-voting treasury shares. These shares have been acquired from two former employees benefiting from the ESOP plan. These shares have been acquired at nominal value.
On 21 October 2015, the Company issued 75,000,000 ordinary shares at GBP 0.40 per share.
On 3 November 2015, the Company awarded 5,500,000 options over its ordinary shares of USD 0.01 each under its 2013 Stock Option and Incentive Plan to its non-executive directors. The options have an exercise price of 46.5p, being the closing share price on 2 November 2015, and duration of 10 years. The options will vest over a 3 year period in equal annual instalments but cannot be exercised until the stock closes above a thirty day average closing price of 100p.
On 3 November 2015, the Company awarded 800,000 options over its ordinary shares of USD 0.01 each under its 2013 Stock Option and Incentive Plan to some employees. The options have an exercise price of 46.5p, being the closing share price on 2 November 2015, and duration of 10 years. The options will vest over a 3 year period in equal annual instalments.
As at 31 December 2015, RM2's issued share capital was 398,030,156 Ordinary Shares of USD 0.01 each in the capital of the Company.
2014
On 6 January 2014 the Company completed the IPO issuing, 155,903,548 shares at GBP0.88 on AIM and receiving net proceeds, after payment of fees of USD 215,760,052. Following repayment of USD71,679,712 of development loans, fees and interest, the Company's balance sheet was free of debt (other than the mortgage on the office building in Switzerland) and retained USD144,080,340 to finance capital expenditure, production of inventory and overheads. The premium arising on the newly issued IPO shares has been taken to the Share Premium Account.
On 6 January 2014 the Company issued 4,157,428 Ordinary Shares at par to a significant shareholder.
On 24 January 2014, 2,316,405 restricted shares were granted to certain Directors having Performance Conditions (see note 22).
On 3 April 2014, 900,000 restricted shares were granted to a consultant subject to certain vesting conditions.
On 13 June 2014, 2,317,000 restricted shares were granted to certain employees, 1,000,000 of which were subject to Performance Conditions, and 1,317,000 of which were subject to certain vesting conditions.
On 22 September 2014 1,000,000 restricted shares were granted subject to certain Performance Conditions.
Following such issuances, the Company had 322,777,156 Ordinary Shares issued.
Ordinary shares issued and fully paid
Shares USD Par value per share At 30 June 2014 (unaudited) 321,777,156 3,217,772 USD 0.01 Subscription for restricted shares on 22 September 2014 1,000,000 10,000 USD 0.01 At 31 December 2014 322,777,156 3,227,772 USD 0.01 Subscription for restricted shares on 2 March 2015 253,000 2,530 USD 0.01 At 30 June 2015 323,030,156 3,230,302 USD 0.01 Subscription for new shares on 21 October 2015 75,000,000 750,000 USD 0.01 At 31 December 2015 398,030,156 3,980,302 USD 0.01 At 30 June 2016 398,030,156 3,980,302 USD 0.01
As at 30 June 2015 and 30 June 2014, the share capital issued composed of one Class of Ordinary Shares having equal rights.
Share premium
USD At 30 June 2014 (unaudited) 219,357,851 At 31 December 2014 (audited) 219,357,851 At 30 June 2015 (unaudited) 219,357,851 Subscription for new shares on 21 October 2015 44,672,999 Transaction costs on issue of shares (713,760) At 31 December 2015 (audited) 263,317,090 At 30 June 2016 (unaudited) 263,317,090
Earnings per share
Basic earnings per share amounts are calculated by dividing the net profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Six months Six months Year ended to to 31 December 30 June 30 June 2015 2016 Unaudited 2015 Unaudited Audited USD USD USD Net loss attributable to ordinary equity holders of the parent for basic earnings (23,811,975) (25,408,411) (58,680,598) ================ ================ ============= As at As at As at 30 June 30 June 31 December 2016 2015 2015 Weighted average number
of ordinary shares for basic earnings per share 398,030,156 322,930,913 337,569,983 Weighted average number of ordinary shares adjusted for the effect of dilution 398,030,156 322,944,891 337,569,983 ================ ================ ============= Loss per share Basic (0.06) (0.08) (0.17) Diluted (0.06) (0.08) (0.17) ================ ================ =============
Management considers that there is no dilutive effect from the options as they would be negative.
Publication of announcement and the Interim Results
A copy of this announcement will be available at the Company's registered office 14 days from the date of this announcement and on its website.
This announcement is not being sent to shareholders. The Interim Results will be posted to shareholders shortly and will be made available on the website.
Subsequent event
Strategic alliance
On September 26, 2016, the Company announced that it has entered into a strategic cost-saving manufacturing agreement with Jabil Circuit, Inc. ("Jabil") for the mass production of the RM2 BLOCKpal pallet in Mexico. The agreement with Jabil, a global leader in digital manufacturing and supply chain solutions, will allow RM2 to scale production to market demand. Initial production is expected to be deployed in Q1 2017. Pallets produced at the facility will initially be deployed with RM2's customers in North America.
This agreement is complementary to the agreement announced in April this year for the production of pallets by Zhenshi Holdings Groups Ltd in China, allowing RM2 to address the volume demands of its clients. Production costs at the two facilities are expected to be similar. The initial aggregate annual outsourcing capacity of the Company remains at c1.5 million pallets.
Under this five-year, renewable agreement, the Company provides existing machinery on a bailment basis to Jabil and makes no initial capital outlay. Should the Company not order a minimum of 143,000 pallets per quarter, it is liable to a pay an under-production gross-up payment to Jabil to enable Jabil to recover USD2 million in capital commitment to the project.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BDLLLQKFZBBL
(END) Dow Jones Newswires
September 28, 2016 02:01 ET (06:01 GMT)
1 Year Rm2 Chart |
1 Month Rm2 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions