The equity and the net asset value of INVL Technology, a company that invests in IT businesses, amounted to EUR 43.53 million at the end of 2023, or EUR 3.6052 per share, and grew 13.7% during the year.
The company had a net profit of EUR 5.17 million last year, which is 2.4 times more than in 2022 (net profit of EUR 2.11 million). Last year’s results were positively impacted by a EUR 9.95 million increase in the value of portfolio companies. Provisions for performance and accrued management fees reduced the result for 2023 by EUR 4.91 million.
The value of INVL Technology’s portfolio companies rose from EUR 34.9 million to EUR 44.9 million during 2023. INVL Technology owns the cybersecurity company NRD Cyber Security, the GovTech and FinTech company NRD Companies, and the Baltic IT company Novian.
NRD Cyber Security had an average internal rate of return (IRR) of 38.2% from the end of 2016 to the end of 2023. That of NRD Companies was 21.1%. The Novian software services and IT infrastructure group had an IRR of 9.8% for the period, including an IRR of 16.5% for technology and digitalization services and 5.6% for the software services area.
“In 2024 we are starting the sale of portfolio companies. NRD Cyber Security, Novian and NRD Companies employ talented people in the areas of cybersecurity, artificial intelligence, supercomputing and information systems development and implementation. These businesses serve important international clients and are leaders in their niches, having developed distinctive technologies and know-how. Talented and successful companies are being sought all over the world, and we look forward to expressions of interest from international and regional investors,” says Kazimieras Tonkūnas, INVL Technology’s managing partner.
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.
Performance of INVL Technology’s business holdings
INVL Technology’s portfolio companies had aggregated revenues of EUR 62.57 million in 2023, or 24.6% more than in 2022. Their gross profit grew 22.3% in the year to EUR 17.96 million, while their aggregated EBITDA grew 43,8% to EUR 3.56 million.
Last year INVL Technologies portfolio companies conducted activities in 63 countries of the world, including Brazil among new markets. Revenue from operations abroad grew 40.2% in the year to EUR 23.39 million and accounted for 37% of total revenue (4 percentage-points more than the previous year). On the Lithuanian market, the portfolio companies had revenue of EUR 39.18 million, which was 16.8% more than in 2022 and made up 63% of total revenue.
Novian had aggregated revenues of EUR 40.27 million in 2023, which is 21.9% more than in 2022, and earned an operating profit of EUR 137,000. The Novian group’s EBITDA last year decreased 18.4% to EUR 1.242 million. The group consists of Novian in Lithuania with the technology-area businesses Novian Technologies, Novian Eesti in Estonia, Zissor in Norway, Andmevara in Moldova, and Norway Registers Development Rwanda in Rwanda, and the software services businesses Novian Systems and Elsis PRO in Lithuania.
NRD Companies had consolidated revenue of EUR 10.985 million last year, 36% more than in 2022, and a consolidated operating profit of EUR 1.135 million (versus EUR 0.002 million in 2022). The EBITDA of the NRD Companies group was EUR 1.36 million and was 6.4 times the previous year’s figure. Norway-based NRD Companies has the subsidiaries Norway Registers Development in Norway, with a branch in Lithuania, and NRD Systems and Etronika in Lithuania.
NRD Cyber Security, which also owns NRD Bangladesh, had consolidated revenue of EUR 7.411 million in 2023, an increase of 21.9% from 2022. Its operating profit grew 73.8% last year to EUR 0.98 million as EBITDA rose 71.5% to EUR 1.12 million.
Important information
This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment shares of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.
When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the articles of association, prospectus and other documents of the respective collective investment undertaking.
