INVL Technology, a company that invests in IT businesses, had equity of EUR 23.915 million, or EUR 1.96 per share, at the end of the third quarter this year. Equity per share was up 0.4% from the start of the year. During the third quarter the company’s equity grew by EUR 409 000 and its net asset value per share rose by 1.74%.
The company’s investments in the businesses it owns totalled EUR 20 million at the end of September, which is EUR 801 000 less than at the start of the year. The change was mainly due to dividends the businesses announced, which exceeded EUR 1.3 million and reduced the value of the assets held. Meanwhile, the value of assets increased by EUR 0.5 million due to revaluation.
INVL Technology had a net profit for the reporting period of EUR 103 000. The figure for the same period last year was EUR 214 000. In the third quarter, meanwhile, the company had a profit of EUR 409 000, which is an increase of 111.87% compared with the corresponding period last year.
“We view this year’s nine-month and third-quarter results favourably. The revenues and profits of most of the businesses we own grew, and they signed significant new contracts, which ensures future business growth. Also, to make INVL Technology’s businesses more attractive for potential investors, to increase their competitive advantage and to expand the business in countries of Northern Europe, we continued the consolidation of business holdings begun at the start of the year,” said Kazimieras Tonkūnas, INVL Technology’s managing partner.
In consolidating its holdings, INVL Technology is reorganizing the businesses of NRD Companies, centralizing the financial management and control functions, and has begun the process of forming a holding company for this group.
Also in the context of consolidation processes, in September Andmevara AS was reorganized, splitting it into two companies, Andmevara AS and Andmevara Services OÜ, and separating their activities. IT infrastructure maintenance, hosting and digitalization operations were split off from Andmevara AS to the newly established Andmevara Services OÜ. Andmevara AS will continue to focus on its core business – development of information systems.
The reorganization was undertaken in order to combine the IT infrastructure and information systems development businesses that INVL Technology owns in Lithuania, Estonia and Moldova, rearranging them and thereafter forming the Novian group of IT services and programming companies.
It is foreseen that in the long term BAIP, another INVL Technology-owned company which provides critical IT infrastructure services, will acquire Andmevara Services OÜ, thus strengthening and expanding BAIP’s operations in Estonia and Moldova, while Andmevara AS will be acquired by Novian, which owns BAIP.
INVL Technology’s business holdings, as of this year, are divided into three functional groups: a business climate improvement and e-governance group (to which the NRD Companies group belongs), a cybersecurity group (to which NRD CS belongs), and an IT services and programming group (comprising Novian, BAIP, Acena, Algoritmu Sistemos, Andmevara Services OÜ and Andmevara AS).
Results of specific businesses
In three quarters of this year, NRD Companies had revenue of EUR 5.1 million, or 19% more than in the same period last year. Its EBITDA was EUR 483 000 and increased 2.3 times versus the year-ago period.
The revenues of BAIP and Acena in January-September shrank 1.4% from the same period last year to EUR 8 million. Their EBITDA was EUR 467 000 and compared to the first three quarters of 2017 fell by 4.9%.
Algoritmu Sistemos’s nine-month revenue, meanwhile, was EUR 2 million, or 25% more than in the same period last year, while its EBITDA was EUR 161 000, which is 4.5% more than last year.
Andmevara AS’s revenue for three quarters grew 14.8% from the same period last year to EUR 963 000, while its EBITDA was a negative EUR 43 000 (versus a negative EUR 173 000 last year).
NRD CS’s January-September revenue increased 4.2% to EUR 1.9 million, and its EBITDA decreased to EUR 68 000 (versus EUR 235 000 in the same period last year).
INVL Technology has invested in the Norwegian company Norway Registers Development AS with a branch and subsidiaries NRD Systems UAB and Etronika UAB in Lithuania, Norway Registers Development East Africa Ltd in Tanzania, Norway Registers Development Rwanda Ltd in Rwanda and NRD Bangladesh Ltd in Bangladesh, and the associate company Infobank Uganda Ltd in Uganda. INVL Technology’s portfolio of businesses also includes the Lithuanian company Novian UAB with subsidiaries BAIP UAB and Acena UAB as well as NRD CS UAB and Algoritmu Sistemos UAB, all in Lithuania, and Estonia’s Andmevara AS and Andmevara Services OÜ with subsidiary Andmevara SRL in Moldova.
On its receipt of a closed-end investment company license in July 2016, INVL Technology’s management was assumed by INVL Asset Management – a part of Invalda INVL, one of the leading asset management groups in the Baltics. INVL Technology will operate as a closed-end investment company until 14 July 2026.