19th Sep 2014 09:42
LONDON (Alliance News) - Pallet maker RM2 International SA Friday said it generated revenue in the first half of 2014, but said its loss widened significantly, as administrative costs rose sharply.
The company, which listed on AIM in early January, reported a pretax loss of USD22.1 million for the six months to June 30, wider than the USD8.9 million loss it posted in the first half of 2013
RM2 recorded revenue for the first-half of USD781,431, compared with nothing in the same six month period last year, but administrative expenses rose to USD17.7 million from USD5.3 million, hit by initial public offering costs and share-based charges, and as wages and salaries more than doubled.
"The decisions made in early 2014 have begun to bear fruit as our production builds alongside demand for our products and solutions. We believe we have put in place the foundations for a business that can grow significantly," said Chairman Ian Molson in a statement.
RM2 was formed to try to 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.
The company said Friday that increases to its manufacturing capacity, for its new, larger production facility in Ontario, Canada, are proceeding on schedule, while recent contract wins have built positive momentum in the business.
"Recent contract wins for RM2 coincide with an increase in production at our new facility. I am confident in the scalability of these contracts and of both further contract wins and increasing customer demand," said Chief Executive John Walsh in the same statement.
RM2 International shares were down 6.5% Friday morning at 68.97 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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