RS2 software announces net profit over €2 million

The event, held at the Westin Dragonara Resort in St Julians, was addressed by Chairman of the Board Reinhold Schäffter, RS2 CEO Mario Schembri, and Radi El Haj, who is responsible for RS2’s Business Development.

The Group announced net profits after tax of over €2 million, attributing the result to its BANKWORKS payment solution system and heavy investments in consolidating their current markets and starting new operations in Asiaand the United States of America.

During the meeting, Reinhold Schäffter revealed plan to step down as Chairman of RS2 Software by the end of this year, “and make room for the younger generation to flourish in the business.”

Current CEO Mario Schembri, will take on the position as Chairman, while Radi El Haj will take on the role of Chief Executive Officer, Schäffter said. Schäffter himself will remain active within the group, focusing mainly on the Asian region.

Schembri announced that the Group’s net profit after taxation amounts to €2,613,336. This resulted in an increment of 197% when compared to 2009. Profit attributable to shareholders amounts to €2,861,431 - a 178% increase over the previous year.

We have always believed in the philosophy of never rushing blindly into our business, we research, learn, consolidate and move forward. In this way, as we near our 25th anniversary, we are year after year reaping the fruits of our investments in a solid product, a young, intelligent and dynamic team, and experienced management,” Schembri told the gathered shareholders.

EBIDTA stood at €2,403,806 with a 106% increase over 2009. A dividend of €0.03c2 per share was recommended and approved during the meeting.

This amounted to a total dividend of €1,200,000. RS2 attained achievements in various markets during 2010, particularly in Germany where RS2 has signed its first client, and the Asian market, obtaining its first client in the Philippines.

The company also continued to invest in its United States subsidiary and was benefitting from exposure in the US market even though this entity is still not generating profits.

RS2 has since concluded three new contracts in the USA, two in 2010 and one early in 2011, while also signing a contract with a bank in Greece with the product for this bank already defined and expected to go live in the coming year.

RS2’s strategy focuses on maintaining sound client relationships in order to continue enhancing the BANKWORKS payment solution system according to client and industry requirements, thus ensuring global competitiveness.

In March 2010 RS2 organised a User Forum in Malta where customers were brought together to share their experiences using the BANKWORKS system and express their views, specific needs and requirements. Customers were also introduced to two new modules added to the BANKWORKS suite of products

Schembri affirmed that more than ever RS2 continues to focus on marketing and networking, following the participation in 2010 at two of the most popular trade shows in the world, in Dubai and Singapore.

RS2 will also continue to invest both locally and abroad Schembri said, citing the work on the Company’s new premises in Mosta. “Following the success of 2010, RS2 Software now looks forward to reaping the benefits from the newly signed contracts.

Our new premises in Malta, currently under construction, will allow the Group to continue developing its BANKWORKS product with better services provided to customers,” he said, “such that soon we will be in a position to invest more in our product, our staff and in our clients.”

On his part, Radi El Haj explained the RS2’s visions for the coming years, emphasising that the Chinese and the US markets cannot be ignored and RS2 will focus heavily on them.

He stated that BANKWORKS has significant potential in the American market notwithstanding the market’s maturity level and fierce competition.

On the other hand, continued El Haj, the Chinese card payment market is still in its infancy and the shift from the use of cash towards cards and online payment provides an opportunity for RS2 to market BANKWORKS in this market.

“I am looking forward to taking on my role within RS2,” El Haj concluded, “and I will work to ensure that RS2 Software continues to flourish.”