RS2 CEO announces ‘ongoing discussions on potential sizable projects’

RS2 Software plc CEO Radi El Haj has declared that the company is currently in discussions over projects that could result in increased revenue in 2023 and beyond.

Although RS2 experienced a sharp 72.3 per cent drop in pre-tax profit during 2022 (€1.8 million) from 2021’s figure (€6.4 million), its top-level management earlier this year remarked that the results indicate a “stable top line” when compared to the previous year, despite current market conditions.

Over the past few years, the company has experienced a series of mixed results, with Directors stating that the challenging environment was primarily brought about due to customers being “cautious to execute signed projects while also holding back new ones”.

This decrease in pre-tax profit was also joined by a “significant stagnation in investment” midway through 2022, resulting in RS2 having to apply counter measures in the final few months of the year. Despite this, Directors had expected 2023 to be a year filled with innovation and change within the payments industry, with the company remaining on track to achieve its long-term targets.

Speaking during the global payments solutions provider’s Annual General Meeting (AGM), held on 15th June, Mr El Haj noted the company’s resilience through the tough COVID-19 pandemic and conflict in Ukraine. The company stated that the meeting was well attended and that shareholders actively and keenly participated.

Mr El Haj said that the company has now reached an “encouraging inflexion point” in its operations.

He gave a high-level overview of the strong business pipeline, explaining RS2’s “evolving business and development of services” in terms of geographical expansion and diversification of its products and services globally.

He stated that the company is in “ongoing discussions on potential sizable projects”. Should these be materialised, it could not only translate into a sharp increase in revenue in 2023 and future years, but more so will “enhance the company’s global presence and showcase its potential and market capabilities”.

Mr El Haj added that if the company’s positive performance continues, it will be actively considering the issuance of an interim dividend during the current calendar year. He also indicated that “due consideration would also be given to the merits of initialising a share buyback programme” given the dynamics of the local capital market.

During Chairman Mario Schembri’s opening speech, he expressed his appreciation to all shareholders for their “steadfast support and ongoing encouragement” despite the challenging environment that surrounded the business world, including RS2, over recent years.

He then proceeded to give a high-level overview update on the company’s operations and expressed his optimism that the “challenging times are behind the company” and that performance is “expected to improve consistently” amid a renewed air of optimism among existing clients together with the strong business pipeline.

Additionally, the AGM also saw the formal announcement of Antoine Cutajar’s appointment as Chief Technical Officer.

RS2 Software is a company that provides a cloud services platform for payments, with the goal to remove any technical barriers that make the integration of management of payment services complex.