RM2's expectation of turning EBITDA positive appears 'challenging'

RM2 trimmed costs to reduce losses in the first half of its trading year despite a contraction in revenues but said it would be difficult to break even in the coming year.

Revenues tightened 29.7% to $2.6m in the six months ended 30 June, but the "smart pallet" manufacturer still managed to curb losses 10% year-on-year to $17.3m.

Losses per share dropped from the 0.05p each turned in a year earlier to 0.01p each.

Throughout the period RM2, which managed to significantly reduce its cost-base by streamlining its operations, received the first tranche of its $36m equity funding and undertook an open offer to shareholders, raising approximately $20m.

RM2 noted that with the conversion of trials with large customers into long-term contracts taking longer than it had anticipated, the company's expectation of turning EBITDA positive in 2019 was "challenging."

Chief executive Kevin Mazula, said: "Following the refinancing and simplification of the capital structure in the first half of 2018, the company is focused on the deployment of RM2 ELIoT Smart pallets."

In a separate announcement, RM2 revealed that it had appointed David Binks and Andrew Geisse to its board. While not clear on what role the pair will take on at the firm, RM2 will hold a general meeting on 3 October to ratify the duo's appointment.

As of 0830 BST, RM2 shares had dipped 1.82% to 0.54p.