Novian advances with ambitious technology projects
The Novian IT infrastructure and software services group had
aggregated revenue of EUR 9.9 million in the first half of this
year, a decrease of 6.3% compared to the same period last year. The
group’s aggregated EBITDA was EUR 0.6 million and fell 21%. The
Novian group’s operating profit for the six-month period was EUR
0.32 million and decreased 23.5% compared to the first half of
2020, when it was EUR 0.41 million.
“This year Novian is distinguishing itself with ambitious
projects in the technologies and software services business areas
ranging from the installation and maintenance of hyperconverged IT
infrastructure platforms at Lithuanian Railways’ main technology
unit to the creation of a modern information system for public
procurement. We welcome such multifaceted challenges that make us
grow faster too, since implementing complex projects with modern
and effective solutions is part of what Novian is all about,” says
Evaldas Rėkus, the CEO of Novian.
He notes that the results for the first half of the year were
impacted by uneven market demand and fluctuations in the value of
the US dollar, and that currently the group’s companies have
returned to their usual rhythm. “Financial performance was also
influenced by work to increase the share of long-term managed
services agreements, which give clients stability and clarity about
IT service costs for several years in advance. While at this stage
for us that means bigger investments to promote those services and
a shifting of some revenue to future periods, having contracts for
several years will ensure stable revenue of that type,” Evaldas
Rėkus says. The corporate sector’s share of revenue has grown from
33% in 2019 to 44% in the first half of this year and the financial
sector’s has risen from 17% to 23%, while the share of revenue from
the public sector has shrunk from 44% to 28%.
“At the start of the year we continued to refine the
group’s operating areas with a focus on integrated services and
gave a lot of attention to the joint activities of the merged
companies Novian Systems and Acena,” the CEO says. Considering the
market’s needs for digitalization, he says, the Novian group offers
relevant software, business analytics and process automation
solutions as well as critical IT infrastructure managed services,
and is implementing digitalization projects of diverse scale.
Novian is unique in the region in its ability to conduct
large-scale digitization projects and adapt digitized material for
further use. Currently Novian Technologies, together with the other
Novian group companies Andmevara Services OU and Zissor, is
implementing projects to digitize documents and upload them to
relevant systems in Lithuania, Estonia and Moldova. The geography
of the group’s activities in the first half of the year included
over 30 countries. As in the first half of last year, the share of
revenue earned aboard was 32%.
Novian Technologies completed important projects in
Lithuania and Kyrgyzstan
Novian Technologies, the main Novian company working in the
technologies area, had revenue of EUR 7.2 million in the first half
of 2021, or 8.5% less than in the same period last year. The
company’s operating profit was unchanged at EUR 0.48 million. Also
operating in the group’s technologies area are Andmevara Services
OU of Estonia and Andmevara SRL of Moldova.
“The first half of this year is notable for the number of large
projects completed and new ones started. One of the most
interesting is at Lithuanian Railways, where we will upgrade and
maintain extremely critical hyperconverged IT infrastructure. We
also see a growing need on the market for digitization services and
many organizations that are keen to extend the lifetime of computer
hardware. We are building significant international partnerships.
And we have resumed travel and work for clients in Africa and other
foreign countries – business processes are gradually returning to
their earlier, pre-pandemic course,” Novian Technologies CEO Gytis
Umantas says.
Worth noting among this year’s most important projects are the
completed installation of a high-performance computing cluster at
Vilnius University’s Faculty of Mathematics and Informatics, the
completed first phase of a GovCloud installation project, and
modernization of the Kyrgyz postal system. Together with Andmevara
Services OU and Zissor, digitization of documents is underway at
Vilniaus Vandenys and Vilniaus Šilumos Tinklai. Work to digitize
tens of millions of pages for the National Archives of Estonia and
the Cadastral Archive of Moldova is also ongoing.
Novian’s technologies area companies have earned the largest
portion of their revenue this year from the corporate sector, at
50%, which is up from 36% in 2019. The share of their revenue from
the financial sector has risen to 25% from 20%, while the public
sector’s share of revenue has fallen to 21% from 39%.
Lithuania accounted for 69% of revenue in this business area,
while in the first half of 2020 the level was 70%. Projects have
been carried out in 32 countries this year. The technologies
companies are focusing heavily on critical IT infrastructure, cloud
computing, modern digital workspaces, and other technological
solutions.
Novian Systems to modernize the central public
procurement information system
Novian Systems, Novian’s main company in the software services
area, had revenue of EUR 1.5 million in the first half of this
year, or 3.6% less than in the same period last year. Its operating
loss for the period, at EUR 70,000, was up from EUR 19,000 in the
first half of 2020 (following the merger of Novian Systems and
Acena at the end of 2020, operating results reflect their
aggregated figures.). Andmevara AS of Estonia also operates in the
Novian group’s software services area.
“We are pleased to be contributing to projects of such
importance to Lithuania as the creation of the modern public
procurement information system Saulė, for which we will use the
latest solutions. We are also seeing increased demand for rapidly
built solutions based on cutting-edge technologies,” says Paulius
Vaitkevičius, the Head of Business Development at Novian Systems.
He notes that the group’s companies in this area also offer data
analytics, robotics, and artificial intelligence solutions.
The Novian companies working in the programming area have
conducted projects in 8 countries this year. Of their revenue, 76%
was earned in Lithuania, up from 72% in the first half of last
year. While the public sector was the source of most revenue again
this year, since 2019 its revenue share has fallen from 64% to 56%.
The corporate sector’s share of revenue is little changed at 24%,
while the financial sector’s share has grown from 4% to 16% and the
academic sector’s share has decreased from 6% to 2%.
Projects of special note in the reporting period include
development of the ESKIS Taxpayer Electronic Education, Consulting
and Information Service as well as the implementation of automation
solutions for a municipal waste collection system at Visagino
Būstas and for handling milk collection waybills at the Pienas LT
agricultural cooperative.
Zissor continued the digitization of
publications
The Norwegian company Zissor, a provider of media monitoring
software and digitization services, had revenue of EUR 484,000 in
the first half of the year (65.2% more than in the first half of
2020), while its operating profit was EUR 102,000, or 7.8 times the
amount in the same period last year. The company earned the largest
part of its revenue, 44%, in the UK, with 18% in Sweden and 13% in
Norway, and also conducted projects in Germany and elsewhere.
Noteworthy among Zissor’s projects is the digitization of the
archives of the Norwegian newspaper Vesterålen, in which Zissor
digitized the newspaper’s entire archive of 200,000 pages for the
years 1921-2010. Additionally, in collaboration with Visiolink,
work is underway to digitize German newspapers – the project
involves converting PDF pages to articles and pictures and
generating XML codes. Zissor is also digitizing the Danish
newspaper Ingeniøren.
The Novian group’s companies operate in the Baltic countries,
Norway and Moldova. The Novian group of businesses is owned by INVL
Technology, a company that invests in IT businesses.
The person authorized to provide additional information:
Kazimieras Tonkūnas INVL Technology Managing Partner E-mail
k.tonkunas@invltechnology.lt
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