News from INVL Technology managed companies: Novian’s revenue rose
21.9% in 2023 to more than EUR 40 million
The Novian software and IT infrastructure
services group had aggregated revenue of EUR 40.3 million in 2023,
an increase of 21.9% compared to 2022. The group’s EBITDA for last
year was EUR 1.2 million and shrank 18.5% from the previous year.
The operating profit for 2023 was EUR 0.14 million and was 72.2%
smaller than in 2022.
“As demand for digitalization grows, we are
striving to create value for clients by addressing their needs and
providing advanced programming and IT infrastructure solutions,
seeking ways to effectively apply innovations, including AI. We are
delighted that our steady work in this direction is contributing to
business growth on both a national and international scale,” said
Tomas Vitkus, the CEO of the Novian group.
He added that one important competence of Novian
is its experience developing modern technological solutions for
fast and efficient digitalization, where instead of monolithic
information systems, container platforms are used to upgrade IT
infrastructure, and microservices are used to deploy new
applications and information systems. “We see that demand for such
solutions is growing, so we’re building up our expertise and team
in these areas,” he said.
Looking at strategic business areas, the Novian
group’s software development revenue grew 11.6% last year compared
to 2022, from EUR 8.2 million to EUR 9.1 million. Of the group’s
strategic areas, the one that increased the most last year – up 3.3
times – was high performance computing (HPC) and cloud computing
platforms, where revenue rose from EUR 1.3 million to EUR 4.3
million.
In the digitization area, revenue grew 6.5% in
2023 to EUR 1.6 million. Among recurring services, IT maintenance
projects dominated. Revenue in that area shrank by 6.7% last year,
from EUR 5.1 million to EUR 4.7 million.
In the reporting period, the Novian group’s
companies earned EUR 29 million of their revenue, or 72%, in
Lithuania; the amount is 15.3% more than in 2022. Revenue earned in
other countries was EUR 11.3 million, or 42.9% more than in the
year-ago period. The group had activities in a total of 37
countries last year.
IT infrastructure managed services
enhanced
“Last year stood out for Novian Technologies in
terms of innovations and an expanded business geography. In the
first half of the year, to strengthen our position in Africa, we
added Rwanda-based Norway Registers Development Rwanda Ltd. to our
companies in the technologies business area. And in late 2023 we
were one of the founders of the Lithuanian Quantum Technology
Association, which we believe will allow us to contribute to the
growth of this innovative technology,” Gytis Umantas, the CEO of
Novian Technologies, said.
He said the company also focused heavily on
improving the quality of critical IT infrastructure managed
services. “We are pleased that the structural changes in the
company have allowed us to address clients’ needs better, as the
new contracts signed at the start of this year demonstrate,” the
manager noted. Those service include IT infrastructure maintenance
and management, computerized workplace management, service
restoration as per a service level agreement, and proactive
incident management and resolution.
Notable among the implemented projects was the
deployment of container management platform solutions providing the
Bank of Lithuania, the Centre of Registers, and the Information
Society Development Committee of Lithuania with tools for running
modern applications.
An HPC solution was implemented to benefit the
16 countries of the Southern African Development Community (SADC).
That project will enable the SADC’s members states to forecast
weather faster and more accurately and better prepare for the
challenges arising from climate change. An HPC project is also
underway in Bangladesh.
In the digitization area, projects in Moldova
stood out for their size. More than 40 million pages will be
digitized in projects at the country’s Public Services Agency. A
digitization project was begun in Sint Maarten as well, with plans
to set up a digitalization centre and digitize about 4 million
pages. Novian companies also carried out digitization projects in
Sweden, Norway, Italy, France, Switzerland, Germany and India.
Software developed in projects for
public sector, aviation, defence
“In the area of software services, we continue
actively developing national information systems. We have
especially big experience in tax and health care projects and are
working on others in the area of defence. In addition, we are
working to strengthen software services – we do not just develop
customized information systems but also provide dedicated teams of
programmers on demand for projects and organisations, including
embedded software development. Currently our specialists are
involved in a variety of projects in Western Europe,” said Tomas
Vitkus.
“Noteworthy in Novian Pro’s portfolio of
projects is a contract signed on the development of a system for
scheduling the work of Brazilian air traffic controllers, on behalf
of the Brazilian Air Force’s Department of Airspace Control (DECEA)
under the Ministry of Defence”, Novian Pro CEO Rimvydas Jančiauskas
noted. The company additionally began new projects as a consortium
member under a European Defence Fund programme.
Last year Novian Pro also introduced Innovation
as a Service (IaaS), which allows organisations to develop AI and
other innovations without having to establish a separate unit. And
the change of the name of this software services company which
Novian acquired in 2021 to Novian Pro completed its integration
into the group.
Still, profitability in the software services
area was hurt by a major increase in the costs of a project for
services to modernize Lithuania’s Central Public Procurement
Information System. That meant a loss on the project (with a
negative impact of EUR 0.66 million in 2023), as a result of which
Novian Systems’ EBITDA was negative last year at EUR 0.3 million,
compared to a positive EUR 0.065 million in 2022. Its normalized
EBITDA for 2023, excluding that loss, was EUR 0.4 million.
Following the termination of the contract by the parties, the
company is seeking to resolve the situation in court or by
negotiation.
The Novian group consists of Novian
Technologies, Novian Systems and Novian Pro in Lithuania, Novian
Eesti of Estonia, Andmevara of Moldova, Zissor of Norway, and
Norway Registers Development Rwanda of Rwanda. The calculation of
the Novian group's 2023 financial results is based on the audited
results of Novian Technologies, Novian Systems, Novian Pro and
Zissor, and unaudited results of the group's other companies. The
Novian group is owned by INVL Technology, a company that invests in
IT businesses.
The person authorized to provide additional information:
INVL Technology Managing Partner
Kazimieras Tonkūnas
E-mail k.tonkunas@invltechnology.lt
Grafico Azioni Invl Technology Ab (LSE:0R60)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Invl Technology Ab (LSE:0R60)
Storico
Da Dic 2023 a Dic 2024
