RS2 Software plc has registered profit before income tax for the year ended December 31, 2012, of €5.65 million, an increase of 123 per cent over the previous year.

A substantial increase in revenues, coupled with a modest increase in cost of sales, led the company to a gross profit of €7.25 million for the year, an increase of 86 per cent over the previous year.

Total revenue amounted to €12.7 million, an increase of 44 per cent over 2011. The most significant revenue increases were experienced in the licence and service fees categories. While licence sales represent mostly sales to new clients, service fees represent a stable mix of sales to new clients and existing clients. The most notable new contracts awarded during 2012 included licence and service agreements in Europe, North America and Latin America.

Groupwise, RS2 invested heavily in the operations of RS2 Smart Processing, its subsidiary providing managed services to banks and retailers with the use of the group’s Bank Works suite of modules. Early this year, RS2 Smart Processing concluded a significant agreement to provide managed services to a major payment processor in Europe. This subsidiary is the realisation of the group’s long-term strategy to diversify its revenue streams, guaranteeing the group regular monthly income.

“2012 has been a year in which we executed our strategic vision to diversify our solutions and service offering. We have delivered on our commitments made in the previous months and years, and will continue to do so by empowering our executive team and employees to continue developing and implementing our plans for a bright future,” chief executive officer Radi El Haj said.

The financial statements will be put forward for approval by shareholders at the annual general meeting on June 12. The board is recommending a net final dividend of €1 million, equivalent to €0.02c5 per share, and a bonus share issue of one share for every 16 shares held, amounting to 2,500,000 shares.