INVL Technology will continue to strengthen the groups of businesses it owns
The company’s net loss for the first half of 2019 was EUR 0.37 million, a bit more than in the same period of 2018 when it was EUR 0.30 million. INVL Technology’s net asset value (NAV) at the end of the first half of this year was EUR 27.655 million, while NAV per share was EUR 2.2714.
“This year we’ve continued to strengthen the three main groups of businesses that INVL Technology owns and that will be our main goal in the second half of the year as well. After completing the reorganization of NRD Companies and acquiring Norway’s Zissor, we are continuing the consolidation of IT services and software businesses in the Novian group and are also planning new acquisitions that would strengthen the existing companies,” said Kazimieras Tonkūnas, INVL Technology’s managing partner.
In April this year INVL Technology acquired the Norwegian company Zissor, which provides media monitoring and digitization software development and services. The transaction was completed through the company Novian and strengthens the group’s positions in the Scandinavian markets.
According to Tonkūnas, considering the overall results achieved by the business holdings, the first half of this year was successful. Aggregated revenues of the businesses INVL Technology owns in the first 6 months of the year grew 27% compared to the same period last year to EUR 15.778 million. The increase was due to income in foreign markets.
The performance and value of business holdings were positively influenced by successful expansion of Etronika, a part of NRD Companies, in the markets of Kyrgyzstan and Zanzibar, implementing solutions in the areas of postal service modernization and tax administration. Improved results of the cybersecurity firm NRD CS and the IT infrastructure companies BAIP of Lithuania and Andmevara Services OÜ of Estonia also had a positive impact. In the short term, companies’ results and value were negatively impacted by costs related to reorganization of the management of NRD Companies and Andmevara AS, and by significant growth of wage expenses in the market and at owned companies.
In the first 6 months of this year, owned companies implemented projects based on new competencies: BAIP in the areas of high performance computing systems and supercomputers, and Etronika in the modernization of postal financial services provision and in the use of virtual fiscal devices for tax administration. Significant long-term demand is expected in these segments. Owned companies have implemented projects and provided services in a total of 29 countries this year, including the new markets of Egypt and the Cayman Islands.
INVL Technology’s businesses operate in three main areas. Those operating in the area of business climate improvement and e-governance include the Norwegian company NRD Companies AS with subsidiaries: Norway Registers Development AS of Norway with a subsidiary in Lithuania, NRD Systems UAB and Etronika UAB in Lithuania, Norway Registers Development East Africa Ltd in Tanzania, Norway Registers Development Rwanda Ltd in Rwanda, NRD Bangladesh Ltd in Bangladesh, and the associate company Infobank Uganda Ltd in Uganda.
Those operating in the area of IT services and software include Estonia’s Andmevara AS and Andmevara Services OÜ with subsidiary Andmevara SRL in Moldova, Lithuania’s Novian UAB with subsidiaries BAIP UAB and Acena UAB in Lithuania, Norway’s Zissor AS, as well as Algoritmu Sistemos UAB. NRD CS UAB operates in the area of cybersecurity.
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.