The RPMGlobal Holdings Ltd (ASX: RUL) share price is hovering in positive territory so far this week.
While the All Ordinaries (ASX: XAO) gained just 0.06% on Monday, sitting at 7,507 points, RPMGlobal shares managed to leap 2.22% to close the day at $1.84.
This follows the release of the mining software company's first-half results for the 2022 financial year.
Let's take a look at what RPMGlobal reported for the front end of FY22.
Image source: Getty Images
RPMGlobal share price advances after booking growth across key metrics
The RPMGlobal share price pushed higher on the back of the company's latest results.
For the 6 months ending 31 December 2021, RPMGlobal achieved growth despite COVID-19 impacting the business. Here are some of the key highlights:
- Total group revenue of $40.5 million, up 12% on the prior six-month period (H2 FY21)
- Underlying operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $3.9 million, up 457% on H2 FY21
- Net profit of $1.9 million, up $8.3 million on H2 FY21
- No interim dividend declared for the first half.
What happened in H1 FY22 for RPMGlobal?
RPMGlobal experienced a strong first-half operating performance, driven by an increase in software revenue and advisory revenue. The segments delivered earnings of $27.8 million, up 23.6%, and $12.7 million, up 64.9%, respectively on the prior year.
Operating expenses came to $34.2 million for the first half due to the acquisition of two Environmental and Social Governance businesses. These were Nitro Solutions and Blueprint Environmental Strategies, for which RPMGlobal paid a total of $3.9 million in completion payments.
The group has been focusing on moving its software solutions into the cloud which resulted in higher development costs.
At the end of the period, RPMGlobal recorded net assets of $65.8 million, including cash of $32.4 million and no debt.
What's the outlook for RPMGlobal?
Looking ahead, RPMGlobal believes operations will return to normal settings by July following the gradual reopening of borders.
The company estimates that a lift in software sales will materialise once mining countries are open for business.
Management noted that selling complex software solutions to global companies is best done in person rather than online.
The company's ESG division is expected to continue performing in the second half, heavily contributing to revenue in the advisory segment.
While the company maintains a positive outlook, given the unpredictable nature of the pandemic, RPMGlobal refrained from providing FY22 full-year earnings guidance.
