News from INVL Technology managed companies: Novian’s revenue rose 21.9% in 2023 to more than EUR 40 million

    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  [e-mail]
 

Attachment

• Novian 2023 results