16th Jun 2014 08:59
LONDON (Alliance News) - Pallet maker RM2 International SA Monday said its loss widened in 2013 as administrative costs rose as it listed on AIM and ramped up towards production.
The company, which listed on AIM in early January, reported a pretax profit of USD77.2 million for 2013, wider than the USD21.3 million loss it booked in 2012. It reported revenue of USD104,204 in 2013, compared with nothing in 2012, but administrative costs rose to USD32.7 million, from USD7.8 million, due to IPO costs, share-based charges and as wages and salaries more than doubled. Its finance costs rose to USD48.6 million, from just USD410,218.
RM2 was formed to try and revolutionize the pallet market, which is still dominated by heavy-duty wooden pallets. It makes pallets out of glass fibre and resin composite, which it says are ideal for moving consumer goods, food ingredients, pharmaceuticals and packaging.
Last month, it agreed a lease for a 265,000 square foot production facility in Ontario, Canada, which has the capacity for machinery capable of producing the parts for up to about 8 million of its BLOCKPal pallets per year. It expects to have it fully operational by July 1.
"Since the IPO at the start of the year we have fine-tuned our operations and developed a deeper understanding of the requirements of our prospective customers. We have been very encouraged by the response from existing and potential customers and remain very confident that we have the technology and strategy to disrupt a global market."
RM2 shares were down 7% at 53 pence Monday Morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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