RS2 Software has announced that its Board of Directors is recommending the payment of a net final dividend of e0.02c2 per share, amounting to e825,000.

The year ended 31 December 2008 was another successful one for RS2, notwithstanding the current turbulent economic scenario. This is mainly attributed to the company’s main line of business – in-house software development that services a substantial client base – with no exposure to investment portfolios.

RS2 chief executive officer Mario Schembri pointed out that the company registered total revenue of e8,335,549, representing a significant increase of 33 per cent over the previous year’s e6,260,479. “In line with prior years, revenue has been generated from the sale of licences to new and existing clients, maintenance fees and enhanced services. 2008 also saw the introduction of a new source of revenue – comprehensive packages. The latter consists of client agreements, which include a varied combination of licences, maintenance and service fees which require a fixed monthly payment, thereby providing a known and fixed stream of revenue.”

Gross profit for 2008 amounted to e3,638,157, yielding a 44 per cent gross profit margin. This indicates a slight decrease in the profit margin when compared to 45 per cent in 2007. Mr Schembri said this could be attributed to two factors. “Firstly, to meet increasing client demands, the company strengthened its staff complement which inevitably increased the wages and salaries expense. Secondly, as a direct result of a boost in sales in Scandinavia, RS2 experienced a considerable increase in commissions payable to its partner in the region.”

Profit before taxation amounted to e2,900,181, a 35 per cent increase over the reported profit of e2,147,565 for 2007. In addition, profit for 2008 amounted to e2,548,537 when compared to e2,047,421 obtained in the previous year. RS2 further generated a significant increase in total assets of e19,534,395 compared to e10,265,948 generated in 2007.