During the 9 months of 2015, investment in information technology businesses company INVL Technology AB managed companies signed contracts and implemented projects in Lithuania, Latvia, Estonia, Tanzania, Zanzibar, Uganda, Burundi, Rwanda, Lesotho, Liberia, Mozambique, Mauritius, Cambodia, Bangladesh and Bhutan as well as expanded operations in the Baltic States and Uganda.
INVL Technology AB financial assets measured at fair value amounted EUR 12,136 thousand on the 30 September, 2015. Compared to the 31 December, 2014, the fair value decreased by EUR 2,766 thousand (compared to the fair value of the financial assets on the 31 December, 2014, acquired during reorganisation which ended on the 9 February 2015). During the first nine months of 2015 the company had a net loss of EUR 2,440 thousand, which was incurred mainly due to the aforementioned change in the fair value as well as the interest expenses. During the first nine months of 2015, the company received EUR 598 thousands dividends from the managed companies.
“In the 9 months of 2015, INVL Technology managed companies signed new strategic agreements in the Baltics, East and South Africa and South Asia. Currently, INVL Technology is focused on strategic development of managed companies and actively seeks new acquisitions. Therefore, we expect good results and growth in the value of the companies”, said the director of INVL Technology Kazimieras Tonkunas.
INVL Technology operates as a cluster of IT businesses working with large corporate and government entities with a focus in four key areas: business climate improvement and e-governance, IT infrastructure, cyber security and IT intensive industries’ solutions.
In the 9 months of 2015, revenue of NRD group (Norway Registers Development AS with subsidiaries), working in the field of business climate improvement and e-governance, was EUR 3,243 thousand – 30 percent more than last year. While implementing more complex and higher value added projects, EBITDA of NRD group in the 9 months of 2015 reached EUR 249 thousand (in the same period of 2014 EBITDA was negative EUR 61 thousand). Higher value added was also created by an increased share of consultancy tasks in the projects as well as successful NRD UAB activities both in Lithuania and in NRD group projects in East Africa and Southeast Asia markets.
INVL Technology managed companies BAIP UAB and Acena UAB, working in the area of IT infrastructure, had revenue of EUR 7.3 million during 9 months of 2015 (compared to EUR 8.8 million during the same period last year).
Critical IT infrastructure services company BAIP in the 9 months of 2015 earned revenue of EUR 6,545 thousand – 23 percent less than in the same period last year (EUR 8,531 thousand), while EBITDA of the company decreased by 60 percent to EUR 428 thousand (in the same period in 2014, EBITDA was EUR 1,057 thousand).
“During the 9 months of 2015, BAIP successfully carried out its mid-term goals: company signed long-term maintenance contracts with corporate clients in the Baltics, expanded operations to Latvia and Estonia and increased the scope of regular maintenance services agreements. This will allow ensuring good results at the end of 2015, and positively influence the growth of company value in the mid-term”, commented K. Tonkunas.
Revenue of a specialised Microsoft solutions company Acena UAB increased by 91 percent to EUR 936 thousand, while EBITDA was negative EUR 8 thousand (compared to EUR 5 thousand in the 9 months of 2014). In 2015 Acena was selected as Microsoft country partner of the year for Lithuania. In order to simplify the structure and management of INVL Technology investments portfolio, it was decided to transfer 100 percent shares of Acena UAB to BAIP UAB. The deal value is equal to the value of Acena at the end of June 2015 – EUR 412 thousand, therefore the deal did not influence INVL Technology performance indicators.
The revenue of specialised cyber defence company NRD CS in the 9 months of 2015 reached EUR 409 thousand (in 2014 it was EUR 395 thousand). EBITDA was negative – EUR 110 thousand. In the same period last year, NRD CS EBITDA was negative EUR 69 thousand.
“The results of NRD CS in Lithuania were impacted by the delay of a few planned projects. The company also actively invested in the development of international markets, and in the third quarter of 2015, two long-term agreements were signed in South Asia region: Bangladesh and Bhutan. In both countries, NRD CS is developing national Computer Incident Response Teams. This allowed the companies entering a new market with 160 million people, and created preconditions for further international development”, commented K. Tonkunas.
The Company performs independent appraisal annually while preparing annual financial statements. During preparation of interim condensed financial statements, the Company measures fair value of investments either using EBITDA multiple, using historical EBITDA of last 12 months and multiples of comparable entities, either acquisition cost if the transaction occurred recently. Respectively decrease in fair value of BAIP UAB and NRD CS UAB was influenced by comparatives figures which were impacted by the project execution cycles and purchasing cycles of large organizations. Acena UAB and ETRONIKA UAB were stated at acquisition cost due to the recent transactions. Respectively, value of ETRONIKA UAB is not reflected in the value growth of NRD group companies.
INVL Technology, AB is a company, investing in information and communication technologies, listed on NASDAQ OMX Vilnius stock exchange (Nasdaq Vilnius: INC1L). The Company was created after the merger of BAIP group AB and INVL Technology AB.
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 Lithuania, Norway, Tanzania and Uganda: Norway Registers Development AS with subsidiaries NRD UAB, ETRONIKA UAB, NRD East Africa Ltd and Infobank Uganda Ltd, BAIP UAB, Acena UAB and NRD CS UAB.
For additional information contact:
Kazimieras Tonkunas, drector of INVL Technology, AB
Email: [email protected]