INVL Technology, a company that invests in IT businesses, had an equity and a net asset value of EUR 43.95 million at the end of June this year, which is 1% more than at the start of the year. Their per share value of its equity and NAV was EUR 3.6658 and was up 1.7% from the start of the year.
INVL Technology had an unaudited net profit of EUR 0.62 million in the first half of 2024, compared to a loss of EUR 0.44 million in the same period last year.
“We continue actively preparing INVL Technology’s portfolio companies NRD Cyber Security, Novian and NRD Companies, which operate in the areas of cybersecurity, artificial intelligence, and the development and deployment of supercomputers and information systems, for sale. The companies’ operating results are good and they are leaders in their markets, known for their IT know-how and talented specialists. Thus, we believe that the sale of INVL Technology’s companies will attract the interest of international and regional investors,” says Kazimieras Tonkūnas, INVL Technology’s managing partner.
Performance of INVL Technology’s portfolio companies
INVL Technology’s portfolio companies had aggregated revenues of EUR 27.34 million in the first half of this year, which is 6% less than in the same period last year. Their gross profit increased 7.2% in the same period of comparison to EUR 8.74 million, while their aggregated EBITDA grew 2.2 times larger to EUR 2.28 million.
In 6 months of this year, the companies had EUR 17.47 million of revenue in Lithuania (64% of all revenue) and EUR 9.86 million of revenue abroad.
INVL Technology owns and manages the cybersecurity company NRD Cyber Security, the GovTech company NRD Companies, and the Baltic IT company Novian.
According to INVL Technology’s managing partner, good results are expected of the companies for the full-year 2024 as well.
“We expect NRD Cyber Security to maintain its growth pace and profitability. Novian’s signed and planned contracts and ongoing projects will let it catch up with and exceed 2023 revenues in the second half of this year, and the return to profitability suggests good results can be expected for full-year 2024. We expect to see growth in NRD Companies’ profit and profitability even after their significant jump in 2023,” Kazimieras Tonkūnas says.
NRD Cyber Security, which also owns NRD Bangladesh, in the first half of 2024 increased its consolidated revenue by 32.4% from the same period last year to EUR 3.64 million. The company’s gross profit grew 13.9% in the period of comparison to EUR 1.91 million, while its EBITDA rose 42.3% to EUR 570,000.
NRD Companies had consolidated revenue of EUR 5.02 million in January-June, 19.4% less than in the first half of 2023, and a consolidated gross profit of EUR 2.49 million, or nearly the same as in 6 months of 2023 (when it was EUR 2.48 million). The EBITDA of the NRD Companies group grew 3.9% to EUR 590,000. Norway-based NRD Companies has the subsidiaries Norway Registers Development in Norway, with a branch in Lithuania, and NRD Systems and Etronika in Lithuania.
Novian had aggregated revenues of EUR 16.43 million in the first half of 2024, 11.1% less than in the first half of 2023, but its gross profit rose to EUR 3.75 million and was 11.3% larger than a year earlier. The Novian group’s EBITDA for January-June grew to EUR 1.12 million, making it 5.5 times bigger than in the same period of 2023. The group consists of Novian in Lithuania with the technology-area businesses Novian Technologies, Zissor in Norway, Novian Eesti in Estonia, Andmevara in Moldova, and Norway Registers Development Rwanda in Rwanda, and the software services businesses Novian Systems and Novian Pro in Lithuania.
In mid-March this year, the company announced that it had signed an agreement with the Zurich branch of M&A intermediation service provider Corum Group’s Luxembourg-based unit Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses.
INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.
