RM2 to raise £30m as losses widen

30th Sep 2015 10:06

(ShareCast News) - RM2 International said it planned to raise £30m through a share placing as it reported wider first half losses. The pallet development, manufacture, supply and management company posted an increase in revenue from $0.78m (£0.51m) to $1.77m (£1.16m).Post-tax losses widened from to $25.4m (£16.7m) from $22.2m (£14.6m).It also flagged revenue and production numbers would be "significantly below previous guidance" as a result of the decision to change to gel coating last week.It had originally expected an upswing in the second half of the year. However the company is looking further ahead, with production of at least 2.5m pallets in 2016, with a production run of 300,000 per month by the end of the fourth quarter of 2016.Chief executive John Walsh said: "We are delivering a quality, mass-produced product to our customers in ever-increasing volumes which will generate powerful performance for our shareholders."The company will raise the extra cash by issuing 75m shares at 40p each.At 1006 BST, shares in RM2 International were down 2.5p (5.9%) to 42.5p at 1122 BST.