Equity of investment in information technology businesses company INVL Technology as of 31 March 2016 was EUR 24.23 million or EUR 1.99 per share – the same as at the end of 2015.
Fair value of investments managed by the Company amounted to EUR 19.7 million as of the 31 March 2016. In the first quarter of 2016, it has increased by EUR 2.78 million – mostly due to the acquisition of Algoritmu sistemos UAB and investments in the share capital of managed companies. Increase in fair value by revaluation amounted to EUR 0.07 million. The cash assets of the Company decreased from EUR 7 million to EUR 4.2 million during the first quarter of 2016. Net loss of the Company for the first quarter of 2016 was EUR 9 thousand.
"The Company is still in an active investment stage – during the first quarter, the number of INVL Technology managed companies and their employees has increased, and the portfolio of the services provided by the cluster of the companies has expanded. Active expansion in frontier markets continued to have positive impact on the results of the managed companies, and with the acquisition of Andmevara new sales channels in Estonia and Moldova have also opened up", said the director of INVL Technology Kazimieras Tonkunas.
So far during 2016, new additions to the portfolio of INVL Technology managed companies include a business process outsourcing company FINtime UAB, registered in Lithuania, information system development company Algoritmu sistemos UAB, Estonian IT services company Andmevara AS with a subsidiary in Moldova, and Norway Registers Development Rwanda.
At the end of the first quarter of 2016, the companies controlled by INVL Technology were measured at their fair value, using the estimation of an independent appraiser Deloitte verslo konsultacijos UAB, conducted at the end of 2015, adjusted by the net profits or losses and payments to the Shareholders that occurred during the period.
Value of Vitma, which controls 100 per cent of critical IT infrastructure company BAIP UAB and its subsidiary Acena UAB, was estimated at EUR 11.49 million, cybersecurity company NRD CS UAB – at EUR 1.8 million, NRD group – EUR 3.8 million. Companies FINtime and Inventio (Company that acquired Algoritmų sistemos, UAB) were estimated at the value of acquisition and their value reached respectively EUR 229 thousand and EUR 2.4 million.
INVL Technology operates as a cluster of B2B- and B2G-oriented IT businesses with a focus in four key areas: business climate improvement and e-governance, IT infrastructure, cyber security and IT intensive industries' solutions. The largest INVL Technology investments currently are companies in Europe (Lithuania, Norway, Estonia, Moldova) and East Africa (Tanzania, Rwanda and Uganda): Norway Registers Development AS with subsidiaries NRD UAB, ETRONIKA UAB, Norway Registers Development East Africa Ltd, Norway Registers Development Rwanda Ltd. and Infobank Uganda Ltd, BAIP UAB with subsidiary Acena UAB, NRD CS UAB, Algoritmu sistemos UAB, and Andmevara AS with subsidiary Andmevara SRL.
KEY OPERATING RATIOS OF THE COMPANIES MANAGED BY INVL TECHNOLOGY
In the three months of 2016, revenue of NRD group (Norway Registers Development AS with subsidiaries), working in the field of business climate improvement and e-governance, was EUR 1.84 million, while EBITDA amounted to EUR 68 thousand. In the same period last year, revenue of NRD group was EUR 0.69 million, EBITDA – EUR 73 thousand.
BAIP UAB with subsidiary Acena UAB, working in the area of IT infrastructure, in the three months of 2016 had revenue of EUR 2.23 million, while EBITDA of the companies reached EUR 112 thousand. In the same period of 2015, the companies had revenue of EUR 2.39 million and EBITDA of 89 thousand.
The revenue of specialised cyber defence company NRD CS in the first quarter of 2016 reached EUR 252 thousand, while EBITDA was EUR 50 thousand. In the three months of 2015, revenue of NRD CS was EUR 89 thousand, EBITDA was negative EUR 86 thousand.
The results of Algoritmu sistemos and Andmevara will be included in the financial reports from the day the control of the companies was transferred – 1 April 2016, and will be reflected in the interim financial report for 6 months of 2016.