INVL Technology - Notification on material event

INVL Technology reports preliminary operating results for 12 months of 2016

Vilnius, Lithuania, 2017-02-28 15:05 CET (GLOBE NEWSWIRE) -- The preliminary
equity of INVL Technology, after the revaluation of financial assets, as of 31
December 2016 was EUR 19.7 million or EUR 1.62 per share (compared to 1.99 euro
per share at the end of 2015) and decreased 18.6 percent in 2016. 

Reported financial indicators of INVL Technology are preliminary, unaudited and
do not represent disclosure of the net asset value of the Company. Net asset
value of INVL Technology will be reported under the terms set in the Articles
of Association of the Company. If audited net asset value is different from the
value calculated based on preliminary financial indicators, provisions on error
reporting set by articles of association of the Company shall not be applied. 

Investments of the Company amounted to EUR 16.7 million at the end of December
2016. During the year the Company invested EUR 3.8 million – the biggest
investments were related to the acquisition of Algoritmų sistemos UAB (by
increase in share capital of Inventio UAB) and Andmevara AS. Also FINtime UAB
was established and investments were made in the share capital of managed
companies.  Decrease in fair value of investments amounted to EUR 4 million. 

The cash and cash equivalents of the Company decreased from EUR 7 million to
EUR 3.1 million. Preliminary net loss of the Company in 2016 was EUR 4.5
million. 



Additional information:

The preliminary equity capital of INVL Technology, a company that invests in IT
businesses, was EUR 19.7 million at the end of 2016, or EUR 1.62 per share, and
decreased 18.6 per cent in the year. During the year INVL Technology made
investments of EUR 3.8 million. The total value of the company’s investments,
after a revaluation of the businesses it owns, decreased by EUR 4.0 million, to
EUR 16.7 million at year-end. According to preliminary data, the company’s net
loss for 2016, including the revaluation, was EUR 4.5 million. 

The valuation of INVL Technology’s investment assets in 2016 was influenced by
poorer performance of its businesses due to the costs of regional expansion and
development of proprietary products, non-recurring events, and a cyclical
contraction of the market caused by delays in the start of a new EU structural
funds investment programme. 

At the same time, two of the companies controlled by INVL Technology –
Algoritmu Sistemos and BAIP – announced dividends during 2016 of EUR 0.25
million and EUR 0.85 million, respectively. 

“Having become a closed-end investment company in the middle of last year, we
aim to generate a significant return for investors by 2026, and that’s why
we’ve focused on decisions which make it possible to boost the value of the
business portfolio over the medium and long term. We’ve given priority to
expansion of constant access to markets and of the portfolio of business
holdings. For their part, the businesses INVL Technology owns have focused on
developing and enhancing new and existing products and strengthening
competencies for international operations. We believe value will recover and
expect to start seeing some of the potential of the new markets, products, and
acquisitions already during 2017,” said Kazimieras Tonkunas, Managing Partner
for UTIB INVL Technology at INVL Asset Management. 

In this period of active business development, he said, a significant role is
being played by cooperation among the company’s firms, which is enabling them
not only to use their resources more effectively and adopt best practices, but
also to benefit from access to foreign markets and jointly develop new
specialised competencies. “We’ll continue to actively develop the companies
we’ve acquired. Our objective is to make them global operations, toward that
end taking advantage of our businesses’ access to markets and intellectual
capital,” Mr Tonkunas said. 

At the start of 2017, INVL Technology’s portfolio of directly and indirectly
controlled businesses included 16 active companies. Six were added in the past
year: the company FINtime was established in Lithuania and Norway Registers
Development Rwanda Ltd was established in Rwanda; the creation of NRD
Bangladesh, which began in late 2016, was completed in February this year; and
the newly acquired companies Algoritmu Sistemos in Lithuania and Andmevara in
Estonia and Moldova joined the portfolio. 

The change in the company’s investment portfolio was mainly due to the
acquisitions of Andmevara and Algoritmu Sistemos in the first half of 2016 and
investments in the capital of owned businesses. FINtime UAB was also
established. 

INVL Technology’s firms, expanding the range of their services, conducted
projects in 17 countries in 2016. They provided services to state and
commercial institutions, banks, law enforcement structures and other
organisations. By the start of 2017, their enlarged network of representative
offices provided continual access to nine markets. Such representative offices
currently operate in Lithuania, Latvia, Estonia, Moldova, Norway, Tanzania,
Rwanda, Uganda and Bangladesh. Meanwhile, foreign revenues of Lithuania-based
BAIP increased to EUR 2.7 million and 28 per cent of all revenue, and NRD CS’s
revenue outside Lithuania grew nearly 90 per cent and accounted for 36 per cent
of all the company’s revenue. 

To-date INVL Technology has invested in the Norwegian company Norway Registers
Development AS with subsidiaries NRD 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 associated
company Infobank Uganda Ltd in Uganda. It has also invested in BAIP UAB with
its subsidiary Acena UAB as well as NRD CS UAB and Algoritmu Sistemos UAB, all
in Lithuania, and Estonia’s Andmevara AS with its 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 until 14 July 2026. 


         The person authorized to provide additional information:
         Kazimieras Tonkūnas
         INVL Technology Managing Partner
         e-mail k.tonkunas@invltechnology.lt

Attachments:

INVL_Technology_Preliminary_operating_results_for_12_months_of_2016_2017-02-28.pdf