2016-08-29 15:35:01 CEST

2016-08-29 15:35:01 CEST


REGULATED INFORMATION

Lithuanian English
INVL Technology - Interim information

Unaudited results for 6 months of 2016 of INVL Technology 


Vilnius, Lithuania, 2016-08-29 15:33 CEST (GLOBE NEWSWIRE) -- Equity of INVL
Technology AB as of 30 June 2016 was EUR 23.925 million or EUR 1.965 per share.
The equity has decreased by 1.3% from the beginning of the year. 

Fair value of portfolio of the Company has amounted to EUR 20.58 million on 30
June 2016. In the first half of 2016 it has increased by EUR 3.62 million –
mostly due to the acquisition of Algoritmu sistemos UAB and Andmevara AS. 

The cash assets of the Company decreased from EUR 6.99 million at the end of
2015 to EUR 3.36 million as of 30 June 2016. 

Net loss of the Company as in the middle of this year was EUR 318 thousand. At
the same period of 2015 the net loss of the company was EUR 257 thousand. The
company had no income from investment activities during the first half of 2016 



Additional information:

The equity capital of INVL Technology, a company that invests in information
technology businesses, at 30 June 2016 was EUR 23.93 million, or EUR 1.965 per
share, and compared with the beginning of the year decreased by 1.3 per cent.
The value of the company’s portfolio of businesses holdings reached EUR 20.58
million in the first half of this year. Its change was mainly due to the
company’s acquisition of Algoritmų Sistemos in March of this year and of
Andmevara in April. The portfolio‘s value at the end of 2015 was EUR 16.96
million. 

“On obtaining a closed-end investment company – UTIB – license this July, INVL
Technology started a new 10-year phase in which it will seek to generate a
significant return for investors by focusing on increasing the value of the
companies it controls. In pursuit of these goals, we’ll continue to invest in
national-level businesses based in European countries, promoting the
globalization of their operations, and thus also opening up new markets and
creating opportunities for INVL Technology companies to expand their portfolio
of services,” said Kazimieras Tonkūnas,Managing Partner for UTIB INVL
Technology at INVL Asset Management. 

He said the performance of the businesses shows the chosen strategy of
globalizing business and focusing on developing markets is working, especially
considering the reduced growth potential of European and Baltic IT markets in
recent years. “Outstanding results were achieved in the first half of this year
by the cybersecurity firm NRD CS, which quadrupled revenue, and by the NRD
group, which works in the area of business climate improvement and e-governance
and whose revenue doubled. Our IT infrastructure companies and providers of
solutions for IT intensive industries all performed stably,” Tonkūnas said. 

Assessing the value of specific INVL Technology holdings, at the end of the
second quarter the equity value of Vitma UAB – which owns BAIP UAB with its
subsidiary Acena UAB – was EUR 11.49 million, that of NRD CS UAB was EUR 1.85
million, that of the NRD group was EUR 3.95 million, and that of Informatikos
Pasaulis UAB was EUR 4 thousand. FINtime UAB, Inventio UAB (which acquired
Algoritmų Sistemos UAB) and Andmevara AS were not consolidated during the
reporting period and were valued at cost. Their respective valuations were EUR
229 thousand, EUR 2.4 million and EUR 665 thousand. The company INVL Technology
itself had no income from investment activities during the period and its net
loss at mid-year was EUR 0.318 million. 

Since its share offering last July, the company so far has invested in Etronika
and Algoritmų Sistemos in Lithuania and Estonia’s Andmevara. These acquisitions
have a total value of EUR 3.25 million. Also in terms of expansion, in February
the business process outsourcing provider FINtime was set up, and NRD group has
established Norway Registers Development Rwanda Ltd., which offers the
portfolio of services of the NRD group and other companies controlled by INVL
Technology in Rwanda. INVL Technology plans to continue investing in business
acquisitions, for that allocating money raised in the share offering as well as
earnings. 

International projects continued

The NRD group, which works in the area of business climate improvement and
e-governance (and comprises Norway Registers Development AS with its
subsidiaries NRD UAB, Etronika UAB, Norway Registers Development East Africa
Ltd., Norway Registers Development Rwanda Ltd. and the associated company
Infobank Uganda Ltd.), in the first half of this year continued projects in
Tanzania, Zanzibar, Uganda, Burundi, Mauritius, the Kingdom of Lesotho and
Southeast Asia, and won new international tenders. 

Revenue of the NRD group, including Etronika, doubled in the reporting period
from a year earlier to EUR 2.834 million. Excluding Etronika’s results, revenue
of the NRD group grew by about 46 per cent to EUR 2.061 million. The NRD
group’s EBITDA (earnings before interest, tax, depreciation and amortization)
for the first half of 2016 was a negative EUR 107 thousand, compared with a
positive EBITDA of EUR 147 thousand in the same period last year. The biggest
factor behind the change in the profit of the NRD group was Etronika, which was
consolidated into the group’s accounts effective 1 July 2015 when it was
acquired by Norway Registers Development. Results were also influenced by costs
related to accelerated expansion in Rwanda and Tanzania. 

Etronika’s revenue grew from EUR 514 thousand in the first half of 2015 to EUR
773 thousand in the first half of 2016. Over the same period, its EBITDA loss
shrank from EUR 295 thousand to EUR 119 thousand. In 2015 Etronika had revenue
of EUR 1.835 million and EBITDA of EUR 112 thousand. 

Estonia-based Andmevara, which was acquired in April this year, currently
serves 250 clients in Estonia and Moldova. In June 2016 a contract was signed
for partial digitalization of the Moldova State Archive and implementation of a
search system. 

New contracts signed in Europe, Rwanda and Burundi

BAIP, which works in the area of IT infrastructure, in the first half of the
year carried out projects and signed new contracts in the Baltic states,
Denmark, Norway, Rwanda and Burundi. The company implemented projects and
maintenance agreements in a variety of Lithuanian institutions and
organizations. BAIP continued to provide services for the largest retail chains
and Scandinavian banks in Latvia and Estonia, and also expanded its activities
in Norway. 

In addition, BAIP together with NRD East Africa implemented three modernization
projects at Rwanda’s central bank this year with a total value of EUR 2.193
million. Two of the projects began last year and the third began this year
after a new tender was won. A new maintenance agreement was also signed with
the central bank of Burundi during the first half of 2016. 

Acena has shifted to a service provider business model focusing on large
corporate clients and the development of its own services and custom solutions. 

The revenue of the IT infrastructure businesses increased to EUR 5.044 million
in the first 6 months of this year, from EUR 4.985 million in 6 months of 2015.
EBITDA and net profit in this area decreased in the first half of 2016 due to
higher costs for international expansion. EBITDA was EUR 245 thousand and net
profit was EUR 19 thousand. 

Business results in the area were also impacted by delays in the start of a new
EU structural funds investment programme, which has reduced public sector
demand for IT services this year. Procurement under the new EU programme, which
is currently being set up, is expected to begin at year-end. Lost income in the
Baltic public sector this year has been offset by international activities and
long-term service agreements with large corporate clients, namely banks and
retail chains. 

Projects carried out in Lithuania, Burundi, Bhutan and Bangladesh

The results of the cybersecurity firm NRD CS were boosted in the first half of
2016 by international expansion and services enhancing cybersecurity prevention
capabilities. Revenue quadrupled, from EUR 150 thousand in the first half of
2015 to EUR 672 thousand in the same period this year. The company’s EBITDA
improved from a negative EUR 147 thousand in 6 months of 2015 to a positive EUR
94 thousand in the same period of this year. 

In the first 6 months 2016, NRD CS signed new international contracts and
carried out projects in Lithuania, Burundi, Bhutan and Bangladesh. In
Lithuania, an IT forensics modernization project was completed at the Police
Department and security testing, auditing, consulting and training projects
were conducted. A cooperation agreement was also signed with Kaunas University
of Technology for joint research in the area of cybersecurity. 

As part of NRD group projects, NRD CS specialists completed deployment of an IT
governance and management framework at the central bank of Burundi and
conducted a pre-investment study for an e-government infrastructure project in
Lesotho. In the Kingdom of Bhutan, a project with NRD AS and BAIP to establish
a national cybersecurity incident response team was completed. And in
Bangladesh, NRD CS and NRD AS are continuing a project to establish a national
cybersecurity incident response team. 

Contract signed to develop product, packaging and waste accounting information
system 

In the first half of this year, the largest clients of Algoritmų Sistemos,
which provides solutions for IT intensive industries, were the Klaipėda
municipality, the National Health Insurance Fund, Lithuanian Airports and the
State Tax Inspectorate. This year the company has also signed contracts with
Lithuania’s Environmental Protection Agency, the State Studies Foundation and
the Vilnius municipality. A 1.7-million-euro contact was signed with the
Ministry of Environment for the development and implementation of a Unified
Product, Packaging and Waste Accounting Information System. Algoritmų Sistemos,
which was acquired by INVL Technology in March this year, was profitable in the
second quarter of 2016, with revenue of EUR 624 thousand and EBITDA of EUR 138
thousand. 


         The person authorized to provide additional information:
         Kazimieras Tonkūnas
         Chairman of the Investment Committee of INVL Technology
         E-mail: k.tonkunas@invltechnology.lt