INVL Technology, a company that invests in IT businesses, had equity of EUR 36.125 million at the end of 2021, which is 7.1% more than a year earlier. Equity per share at the end of 2021 was EUR 2.9936 and, taking the buy-back of own shares into account, increased 8.1% in the year. The company had a net profit last year of EUR 2.6 million, compared to EUR 4.8 million in 2020.
Growth of equity per share from 14 July 2016, when INVL Technology began to operate as a closed-end investment company, to the end of 2021, was 52.46%, also taking purchases of own shares into account. Equity per share increased from EUR 1.96 to EUR 2.99 over the period, giving a compound annual growth rate of 8.01%.
“There has been no lack of change in recent years: the coronavirus pandemic brought greater interest in digitalization and rapid IT solutions, and this year’s war in Ukraine has increased market concerns about cybersecurity, IT resilience and business continuity. Through our work in these areas, we aim to help businesses and public sector organisations grow by means of modern and effective solutions,” said Kazimieras Tonkūnas, INVL Technology’s managing partner.
He said growth of the cyber security company NRD Cyber Security contributed to the results, and that the software and IT infrastructure services group Novian also performed well. “There were also challenges from reduced demand for IT services in more remote markets of the world, the US dollar exchange rate, and increased demand for IT professionals and higher wage costs,” Tonkūnas added.
According to unaudited figures, the aggregated revenues of the company’s business holdings rose 10% in 2021 to EUR 40.3 million. Their gross profit increased 16.8% in the year to EUR 11.98 million. Because the businesses’ operating costs increased more than that, their aggregated EBITDA decreased by 1.3% to EUR 2.93 million.
Following the end of INVL Technology’s investment period in July 2021, the company is now focused on growing the businesses it owns and manages along with their value.
Results by business area
INVL Technology’s companies operate in three directions. In the area of cyber security, NRD Cyber Security’s revenue grew 66.2% in 2021 compared to 2020 to EUR 5.37 million. Its EBITDA was EUR 784 000 and increased 80.6% compared to 2020. The company had an operating profit of EUR 620 000 in 2021, up from EUR 250 000 in 2020. Also operating in this area is NRD Bangladesh Ltd, control of which NRD Cyber Security assumed at the end of 2021.
In the software and IT infrastructure services area, the Novian group had EUR 25.9 million of revenue in 2021, 7.2% more than in 2020. The Novian group’s EBITDA in 2021 was EUR 1.6 million, a contraction of 8.2% from the year before, while its operating profit was EUR 830 000, a 16.3% decrease compared to 2020. The Novian group’s financial figures were favourably impacted by the acquisition of Elsis PRO, whose full-year results for 2021 are included in the financial statements.
The Novian group consists of Novian UAB in Lithuania with the technologies companies Novian Technologies UAB, Andmevara Services OU in Estonia and Andmevara SRL in Moldova, the software services companies Novian Systems UAB and Elsis PRO in Lithuania (the company joined the group in October 2021) and Andmevara AS in Estonia, and the digitization and media monitoring software provider Zissor AS in Norway.
In the area of business climate improvement and e-governance, the companies of the NRD Companies group last year had consolidated revenue of EUR 6.35 million, a decrease of 9.2% compared to 2020. The group’s EBITDA in 2021 was EUR 368 000, or 38.9% less than in 2020, and its operating profit was EUR 100 000 versus EUR 320 000 in 2020. Operating in this area is the Norwegian company NRD Companies AS whose subsidiaries include Norway Registers Development AS of Norway with a Lithuanian subsidiary, NRD Systems UAB and Etronika UAB in Lithuania, and Norway Registers Development Rwanda Ltd in Rwanda. The associate company Infobank Uganda Ltd in Uganda also operates in this business area.
In July 2016, INVL Technology began to operate as a closed-end investment company. Its 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.