INVL Technology, AB – company, investing in IT businesses, listed on NASDAQ Baltic stock exchange. During the first quarter of 2015, INVL Technology investments have not been revaluated, revenue of the company amounted to EUR 41 thousand and net loss – EUR 82 thousand.
The Company is as an investment subject, which was created after the merger of two companies – BAIP group AB and INVL Technology AB. On 9 February 2015 reorganization of INVL Technology AB and BAIP group AB was completed. INVL Technology AB was merged to BAIP group AB. BAIP group AB took over all the rights and duties including the name of INVL Technology, and continues operations under the new name of the INVL Technology AB. As the Company continues activities, which allow the Company to comply with requirements of IFRS 10, applicable to investment subject, the comparative figures are provided of the former INVL Technology AB.
INVL Technology operates as a cluster of B2B- and B2G-oriented IT businesses with a focus in four key areas: business climate improvement and e-governance, IT infrastructure, cyber security and IT intensive industries‘ solutions. The largest INVL Technology investments currently are companies in Lithuania, Norway, Tanzania and Uganda: Norway Registers Development AS with subsidiaries NRD UAB, NRD East Africa Ltd and Infobank Uganda Ltd, BAIP UAB, Acena UAB and NRD CS UAB.
In order to generate significant investment return for investors, INVL Technology invests in mature IT companies working in B2B and B2G with sustainable business models, production capacity in the Baltics or Eastern/Central Europe and the potential for synergetic cooperation with other INVL Technology companies. INVL Technology seeks to increase the value of the companies in its portfolio by bringing financial and intellectual capital for growth and add-on acquisitions, management support, and globalization via sales channels in East Africa and Southeast Asia.
INVL Technology also intends to apply for closed end investment company license, issued by the Bank of Lithuania, in its essence becoming similar to a fund, and is preparing for EUR 21.66 million new share issue.
After reorganisation, INVL Technology Management Board has not changed: Kazimieras Tonkūnas (Chairman), Gytis Umantas, Alvydas Banys, Vytautas Plunksnis and Nerijus Drobavičius remained in the Management Board. Kazimieras Tonkūnas remained the Director of INVL Technology.
Value of companies, controlled by INVL Technology (as of 31 December companies were controlled by BAIP group AB), at the end of 2014 was estimated by an independent appraiser – Deloitte verslo konsultacijos, UAB. Value of Vitma, which controls 100 per cent of critical IT infrastructure company BAIP, UAB, was estimated at EUR 12.8 million, cybersecurity company NRD CS, UAB – at EUR 1 million, Norway Registers Development group – EUR 0.7 million, and software licensing company Acena, UAB – EUR 0.4 million. Equity value of INVL Technology was determined by subtracting EUR 3 million liabilities of INVL Technology.
Based on the assessment of the Company, there were no significant changes in fair value of financial assets at fair value from the date valuation up to 31 March 2015 as the results of subsidiaries controlled by the Company were as budgeted and there were no significant changes in activities of subsidiaries.
In the first quarter of 2015 INVL Technology managed company BAIP UAB increased its revenue by 6.5 per cent and reached EUR 2,325 thousand (in 2014 – revenue amounted to EUR 2,183 thousand). EBITDA decreased to EUR 143 thousand (in same period of 2014 – EUR 332 thousand). Acena UAB revenue increased by 56 per cent and reached EUR 103 thousand but EBITDA was negative (EUR 24 thousand). NRD group revenue reached EUR 686 thousand – 1.6 per cent increase from the previous year. Meanwhile EBITDA of NRD group amounted to EUR 73 thousand (in the first quarter of 2014 NRD group EBITDA was negative EUR 34 thousand). NRD CS revenue in the first quarter of 2015 reached EUR 89 thousand – 66.8 per cent decrease when compared to 2014 when it reached EUR 268 thousand. NRD CS EBITDA was negative – EUR 86 thousand. In the same period last year, NRD CS EBITDA was EUR 22 thousand.
The results of the first quarter were affected by seasonal fluctuations. Therefore, they will not have a significant influence over the annual results of the companies.
Norway Registers Development (NRD) in April 2015 signed an agreement regarding an investment into Etronika, UAB, which develops electronic banking, mobile signature, electronic transport tickets, and retail software solutions. NRD AS plans to invest into new share issue of Etronika, UAB and acquire 80 per cent of Etronika, UAB shares. Total investments, including debt, will amount up to EUR 400 thousand.
NRD has also started activities in Uganda. On the 23rd March Norway Registers Development which owns 30 per cent of Infobank Uganda Limited shares signed Infobank Uganda Limited shareholders agreement. Infobank Uganda intends to work with different registries which are currently largely paper based, and provide registries information to financial sector clients via electronic system. Innovative solutions will allow businesses to obtain the required information, use remote services to order and receive information, order official documents and use a spectrum of electronic services despite paper based registries being in operation. Infobank Uganda activities will contribute to the improvement of business climate in Uganda, decrease costs of doing business, simplify and accelerate activities of financial institutions and therefore increase credit availability for businesses.
The company’s shares are quoted on the NASDAQ Vilnius Stock Exchange from April 2015. Share capital of INVL technology is divided into 6,114,714 ordinary shares with par value of EUR 0.29 each (LTL 1). Main INVL Technology shareholders – Alvydas Banys (5 percent) and a company controlled by him LJB Investments (20 percent), Irena Ona Miseikiene (19 percent), Kazimieras Tonkunas (13.7 percent), Invalda INVL (8.3 percent) and Lucrum investicija (5 percent). In total, company has more than 3.5 thousand shareholders.