INVL Technology - Notification on material event

Net Asset Value and factsheet for 9 months of 2016 of INVL Technology

Vilnius, Lithuania, 2016-10-31 15:11 CET (GLOBE NEWSWIRE) -- Equity of INVL
Technology as of 30 September 2016 was EUR 23.65 million or EUR 1.94 per share
(compared to 1.99 euro per share at the end of 2015). 

The Company's net asset value as of 30 September 2016 was EUR 23,650,988 or EUR
1.9425 per share. 

Fair value of investments managed by the Company amounted to EUR 20.45 million
on the 30 September 2016. In the nine months of 2016, it has increased by EUR
3.49 million – mostly due to the acquisition of Algoritmų sistemos UAB and
investments in the share capital of managed companies. Decrease in fair value
on revaluation amounted to EUR 0.2 million. 

The cash and cash equivalents of the Company decreased from EUR 6.99 million to
EUR 3.3 million in the first-third quarters of 2016. 

Net loss of the Company for the first-third quarters of 2016 was EUR 592
thousand. 

Additional information:

Companies controlled by INVL Technology, which invests in IT businesses, are
expanding international activities. The NRD group of companies, which already
last year began implementing projects in Bangladesh, and the cybersecurity firm
NRD CS in October of this year started the process of registering the new NRD
Bangladesh Ltd, completion of which is planned by year-end. Once this new firm
is established, companies controlled by INVL Technology will have
representation in nine of the world’s countries. To date they have a corporate
presence in Lithuania, Latvia, Estonia, Moldova, Norway, Tanzania, Rwanda and
Uganda. 

“We’re continuing the active investment phase, seeking to invest in
national-level businesses based in European countries and promote the
globalisation of their operations, thus creating opportunities for business
expansion and market diversification to increase their value. Expansion and
investments also reflect in the company’s nine-month results, which relate to
the projects of the businesses we control,” said Kazimieras Tonkūnas, Managing
Partner for UTIB INVL Technology at INVL Asset Management. 

The company’s portfolio of directly or indirectly controlled firms currently
includes 16 businesses which this year have conducted projects in 15 countries,
providing services to a variety of state and commercial institutions, banks,
law enforcement structures and other organisations. Focused on global business
expansion, the group’s companies have developed sales partnerships in South
Asia (in Bangladesh, Bhutan and Cambodia), Eastern and Southern Africa (in
Tanzania, Burundi, the Kingdom of Lesotho, Uganda and Rwanda), Mauritius, and
Europe (in Estonia, Norway, Denmark, Latvia, Moldova) and elsewhere. 

According to INVL Technology’s nine-month results which were published today,
the company’s net asset value at 30 September 2016 was EUR 23.65 million, or
EUR 1.9425 per share. Since the start of the year, this value has been
influenced by the costs of restructuring, expansion of controlled businesses
and reduced public-sector demand for IT services in the Baltic countries, and
decreased by 2.4 per cent compared to the book value of shares at the end of
2015. 

The company’s investments totalled EUR 20.45 million at the end of the third
quarter and in nine months increased by EUR 3.49 million. The change was mainly
due to the acquisitions of Andmevara and Algoritmų Sistemos in the first half
of the year and investments in the capital of owned businesses. Due to the
investments made, the company’s cash and cash equivalents shrank from EUR 6.99
million to EUR 3.3 million in January-September. The company’s net loss for the
period was EUR 592 thousand. 

The fair value of the businesses controlled by INVL Technology at the end of
the third quarter of 2016 was assessed by adjusting the independent valuation
that UAB Deloitte Verslo Konsultacijos performed at the end of 2015 by the
total amount of net profit earned or losses sustained and pay-outs to
shareholders during the assessment period. 

INVL Technology operates as a cluster of IT businesses focused on sales to
large corporate and public sector clients and active in four main areas:
business climate improvement and e-governance, IT infrastructure, cybersecurity
and solutions for IT intensive industries. 

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 and associated company Infobank Uganda Ltd in Uganda. It
has also invested in BAIP UAB with its subsidiary Acena UAB, NRD CS UAB and
Algoritmu Sistemos UAB, all in Lithuania, and Estonia’s Andmevara AS with its
subsidiary Andmevara SRL in Moldova. Calculations show that the companies
controlled by INVL Technology have more than 300 employees. 

Upon its receipt of a closed-end investment company (UTIB) license in July this
year, 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. 


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

Bifogade filer:

INVL_Technology_factsheet_for_9_months_and_NAV_20161031.pdf