Composite pallet supplier RM2 has announced its unaudited results for the six months to June 30, 2016.
- 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
US$35.9 million) andUS$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 18th, 2016
- Recurring revenues being generated from customers across a range of key industries
- Long-term, scalable contracts signed with some of the largest and most recognizable 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.”