RM2 quadruples revenues but significantly widens loss

30th Jun 2016 13:17

(ShareCast News) - Vertically-integrated pallet developer, manufacturer and supplier RM2 International reported on year in which it quadrupled its revenues on Thursday, reaching $8m compared with $2m a year ago.The AIM-traded firm significantly widened its operating loss in the 2015 calendar year, however, to $57.2m compared with $42.4m in 2014.It claimed to be virtually debt-free, with a cash balance of $34.5m as at 31 December, and reported full-year production of 300,000 pallets."RM2 faced serious challenges in 2015 related to the production metrics at the Canadian facility," said chief executive officer John Walsh."These challenges impacted both production volumes and cost per unit, constraining our ability to develop further penetration with our target customers."Walsh said the board firmly believes the manufacturing partnership agreed with Zhenshi Holding Group announced in April will solve both of those issues."Pallets from China are expected to be available for deployment in North America in the first quarter of 2017."We remain committed over the long term to North American production," Walsh reiterated.He said RM2 has good cause to be highly confident of profitable deployment of pallets delivered from China, all of which are earmarked for customers in North America in 2017.The board expects a healthy balance between outright sales, leasing and rentals of pallets, Walsh added."Our new COO, Kevin Mazula, has deep and extensive manufacturing and supply chain manufacturing experience, including working in China, Europe and North America."Kevin is responsible for the transition of those manufacturing assets being transferred to China and the subsequent commissioning and running of those assets there," Walsh explained.