RS2 CEO Radi El Haj has revealed that one of the largest European banks from the UK is interested in acquiring at least 10 per cent of the software company.

He was speaking last week at the company’s annual general meeting.

On May 16, RS2 Software plc announced that its board of directors were informed about a firm intention by a third party to acquire a substantial shareholding in the company of not less than 10 per cent of the total issued share capital.

Mr El Haj said the potential new investor was not after a passive role but a strategic one, which would enable RS2 to expand and access new regions.

Mr El Haj also spoke about the establishment and launch of RS2 Smart Processing Ltd, a wholly owned subsidiary of RS2 Software, inaugurated by Prime Minister Joseph Muscat. He said the new company would generate regular monthly income from the provision of hosted managed services, enabling it to capitalise on new market opportunities as banks seek to address their balance sheets and reduce capital investment while expanding the service footprints.

RS2 Software saw a 21 per cent increase in revenues in 2012 compared with the previous year, and a gross profit margin of 46 per cent, with earnings before interest, tax, depreciation and amortisation at €4.5 million up by €1.2 million year-on-year (37 per cent increase).

Business revenues are continuing to grow but are also becoming broader and more evenly split across; licence fees, service fees, comprehensive packages and maintenance fees (43 per cent, 32 per cent and 26 per cent respectively). In the period ending December 31, 2012 the balance sheet of RS2 Software had grown by €2.3 million, an increase just shy of 15 per cent.

The directors recommended a dividend of €0.025 per share, and a bonus issue of one share for every 16 held currently, creating 2.5 million shares at a nominal value of €500,000 taken out of the share premium reserve, not affecting retained earnings for future dividend payments.