The RS2 Group is reporting a profit before tax of €6.5 million, representing a net profit margin of 33 per cent and an increase of 54 per cent over 2014.

During 2015 the group recognised a net amount of €1.2 million in impairment losses relating to the default over the past few years from two particular clients despite the group’s various efforts to recover such balances.

Ebitda for 2015 stands at €8.3 million, representing 43 per cent of total revenue and an increase of 35 per cent over 2014. Eliminating the effect of the impairment loss, Ebitda would increase to €9.5 million, representing 49 per cent of total revenue, the financial reports explained.

Group assets increased from €32.2 million to €35.2 million and total equity increased from €22.9 million to €25.8 million. Net cash generated from operating activities amounts to €6.2 million when compared with €3.3 million in 2014.

After payment of €1.5 million in acquisition of property, plant and equipment and a payment of dividend of €2 million, the group closes the year with a cash balance of €7.2 million, compared with €4.5 million at end of 2014.

The group generated record total revenues of €19.4 million in 2015, an increase of 28 per cent when compared to 2014 revenues.

This increase in revenue is mostly attributable to an additional demand for services corresponding to a 43 per cent increase over 2014. In 2015 revenue derived from service fees amounted to 62 per cent of total group revenues. This increased demand for services ensures a higher level of recurrent revenue to the Group and contributes towards the smoothening of the effects of fluctuations that may be created by the recognition of licence revenues as was experienced in past years, the group noted.

The board of directors recommended the payment of a net final dividend 2c78 per share amounting to €2.5 million, in addition to a bonus share issue of one share for every 18 held by shareholders. The bonus issue amounting to five million shares will be funded by capitalising €500,000 from the Share Premium Reserve of the company.

The board is also recommending a five-for-three share split to improve the marketability and liquidity of the shares.

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