INVL Technology: A Financial Overview and Future Prospects

INVL Technology, a prominent player in the Baltic investment landscape, has recently released its financial results for the third quarter of 2024. This article delves into the company’s performance, investment strategies, and future outlook, providing a comprehensive understanding of its current standing and potential growth.

Financial Performance as of September 30, 2024

As of September 30, 2024, INVL Technology reported a robust equity and net asset value (NAV) of EUR 44.44 million, translating to a per-share value of EUR 3.71. This marks a 2.1% increase in equity and a 2.8% rise in NAV compared to the beginning of the year, where figures stood at EUR 43.53 million and EUR 3.61 per share, respectively. This upward trend reflects the company’s strategic investments and operational efficiencies.

The company’s investments into managed companies have also seen significant growth, amounting to EUR 44.83 million by the end of September 2024, up from EUR 34.20 million in the same period last year. This increase underscores INVL Technology’s commitment to expanding its portfolio and enhancing its market presence.

Profitability and Revenue Growth

INVL Technology achieved a net profit of EUR 1.11 million in the first nine months of 2024, a remarkable turnaround from the net loss of EUR 538,000 recorded in the same period of 2023. This shift not only highlights the company’s recovery but also its ability to adapt and thrive in a competitive environment.

The aggregated revenues of INVL Technology’s portfolio companies reached EUR 47.60 million from January to September 2024, representing a 12.5% increase year-on-year. The gross profit for these companies also saw a commendable rise of 14.5%, totaling EUR 13.22 million, while their aggregated EBITDA surged 2.2 times to EUR 3.45 million. These figures indicate a strong operational performance across the board.

Portfolio Companies and Their Contributions

INVL Technology’s portfolio includes several key players in the IT sector, notably NRD Cyber Security, NRD Companies, and Novian. Each of these companies has demonstrated impressive growth metrics:

• NRD Cyber Security: This cybersecurity firm reported a 26.74% increase in consolidated revenue, reaching EUR 5.853 million. Its gross profit rose by 14.9% to EUR 3 million, and EBITDA increased by 28.9% to EUR 941,000, showcasing its strong market position and demand for cybersecurity solutions.

• NRD Companies: Despite facing a 17.9% decline in consolidated revenue to EUR 6.88 million, NRD Companies managed to increase its gross profit by 9.3% to EUR 3.3 million. The company’s focus on innovation and efficiency is evident, even in challenging market conditions.

• Novian: This Baltic IT company reported a significant revenue increase of 18.6%, totaling EUR 31.54 million. Its gross profit grew by 24.2% to EUR 6.12 million, and EBITDA skyrocketed 6.7 times to EUR 1.799 million, reflecting its successful expansion and operational improvements.

Strategic Initiatives and Future Outlook

Kazimieras Tonkūnas, INVL Technology’s managing partner, emphasizes the company’s strategic direction, particularly its plans to attract international and regional investors through the sale of its portfolio businesses. In March 2024, INVL Technology signed an agreement with Corum Group International to facilitate this process, indicating a proactive approach to maximizing shareholder value.

Looking ahead, the company is optimistic about its performance for the remainder of 2024. With a solid foundation and a growing portfolio, INVL Technology is well-positioned to capitalize on emerging opportunities in the IT sector, particularly in areas like cybersecurity and artificial intelligence.

Conclusion

INVL Technology’s financial results for the first nine months of 2024 reflect a strong recovery and growth trajectory. With a diversified portfolio and strategic initiatives aimed at enhancing shareholder value, the company is poised for continued success in the dynamic IT landscape. As it navigates the challenges and opportunities ahead, INVL Technology remains a key player to watch in the Baltic investment arena.