Novian enlarged its technological and business area expertise and operating geography
The Novian software services and IT infrastructure group had aggregated revenue of EUR 25.8 million in 2021, or 7.1% more than in 2020. The group’s EBITDA was EUR 1.7 million and compared to 2020 contracted 3.5%, while its operating profit was EUR 0.81 million and decreased 18.3%.
“Last year was a year of growth for the Novian group in terms of both geography and expertise, thanks not only to the complex projects carried out but also to the acquisition of the Elsis PRO software services company. We gave a lot of attention to activities in Estonia and Norway, and a modern digitization centre which is set to launch in the near future will further consolidate the group’s positions in Estonia,” Novian CEO Evaldas Rėkus said.
He said developments of the last few years – the pandemic and the war in Ukraine have also driven changes in the IT market – include growing data empowerment and rapid digitalization and process automation, while military operations have bolstered the need to ensure IT continuity.
“Amid these changes, we have kept our sights on our own goals too. We’ve strengthened our presence in the corporate sector, focused on long-term contracts and carried out technologically advanced projects,” the CEO said. The financial results, he noted, were influenced by heightened demand for IT specialists and wage-related costs.
Examining the 2021 results, Novian companies continued to get about 70% of revenue from the Lithuanian market, while Elsis PRO projects in European Union countries broadened the earnings geography. Altogether the group’s companies conducted projects in 34 countries, compared to 31 countries in 2020.
The Novian group’s revenue share from the corporate sector increased sharply in 2021, accounting for nearly half of total revenue (in 2020 it was 34%), while the public sector accounted for a third of revenue and the financial sector just below 20%.
Novian Technologies is fortifying digitization services
The Novian companies in the technology area had EUR 17.5 million of income, or 7.3% less than the previous year. The companies’ operating profit fell 8.3% to EUR 1 million. The group companies operating in the technologies area are Novian Technologies in Lithuania, Andmevara Services in Estonia and Andmevara SRL in Moldova.
“We are working with focus not just in Lithuania but also in priority markets. In Norway in recent years we have introduced IT infrastructure services and a modern digitization centre will begin operating in Estonia in the near future,” said Gytis Umantas, who heads both Novian Technologies and Andmevara Services.
Through the project of digitization centre Novian will further boost its potential to carry out complex, large-scale digitization projects, adapting digitized material for further use. “It’s made possible by software we have developed along with the group’s experience with immense document digitization projects at the National Archives of Estonia, Moldova’s cadastre and other archives,” Gytis Umantas said.
For Novian’s technology companies, 2021 brought important projects. High-performance computing (HPC) project was completed at Vilnius University, as well as a project at Kyrgyz Post. A project for critical IT infrastructure architecture design, equipment supply, installation and maintenance was conducted at Lithuanian Railways, and a project at the Bank of Lithuania involved the deployment, maintenance and development of an OpenShift platform.
Novian’s technology companies in 2021 earned their largest share of revenue in the corporate sector, at 48%. Another 26% of revenue was from the public sector and 23% was from the financial sector. Compared to 2020, the corporate sector revenue share grew the most it was up from 37%. In 2021, Novian’s technology companies earned 77% of revenue in Lithuania and another 5% each in Estonia and Rwanda. They conducted projects in 33 countries.
Software services companies enlarged their expertise
The Novian software services companies Novian Systems, Elsis PRO and Andmevara had EUR 7.4 million of revenue in 2021, while in 2020 revenue in this business area was EUR 4.5 million. These companies’ operating profit in 2021 was EUR 0.09 million, which is almost four times more than in 2020.
“Adding Elsis PRO to Novian’s software services companies enlarged the group’s expertise in aviation, space, transport and energy – technologically speaking, in the area of artificial intelligence, and geographically, in the European Union. This set of services strengthens Novian’s software development capabilities, enables us to grow not just by developing applied information systems and delivering quick process automation solutions, but also by combining modern technological possibilities,” said Evaldas Rėkus, who is the CEO of Novian Systems and a member of the board of Elsis PRO.
Highlights among the projects that Novian’s software services companies conducted in 2021 include upgrade of the ITIS_EU information system for exchange of VAT information among European Union (EU) countries, deployment of updates for a quality control at Stansefabrikken, development of Microsoft Power BI reports for the Baltic brand development company Vilandra, modernization of the EU Structural Funds Management and Monitoring Information System (SFMIS), and development of the Integrated Airspace Transport (Flight) Analysis and Management System (IOETAVS).
The Novian companies working in software services obtained 60% of their revenue in Lithuania in 2021, 22% in Austria, and 7% in Estonia. The largest share of revenue, 47%, was from the public sector, with 43% from the corporate sector and 8% from the financial sector. In 2020, by comparison, the corporate sector accounted for just 24% of total revenue, while the public sector accounted for 60%.
Zissor digitized Nordic publications
The Norwegian company Zissor, a provider of media monitoring software and digitization services, had revenue of EUR 886 000 in 2021, 24.6% more than in 2020. Zissor’s operating profit was EUR 103 000 and was 17% more than as in 2020.
As in 2020, the company earned its largest share of revenue in the UK, at 35% (compared to 58% in 2020). Meanwhile, 21% of revenue was earned in Sweden (versus 20% in 2020), 11% each in Finland and Norway, and 8% in Lithuania.
Notable among Zissor’s projects in 2021 were the digitization of the archive of the Norwegian newspaper Bladet Vesterålen, digitalization of the Danish newspaper Ingeniøren, and PDF-to-XML conversion of the Norwegian magazine Agenda 3:16. Digitization of the Hordaland Folkeblad newspaper and the Norwegian newspaper Lister was also carried out.
The Novian group operates in three business areas. Working in the technologies area are Novian Technologies in Lithuania as well as Andmevara Services OU of Estonia and Andmevara SRL of Moldova. Working in the software services area are Novian Systems and Elsis PRO in Lithuania and Andmevara AS in Estonia. Working in the media monitoring and digitization area is the Norwegian company Zissor.
Novian’s group results are calculated on the basis of audited results for 2021 for Novian Technologies, Novian Systems, Elsis PRO and Zissor, and unaudited results for the group’s other companies. The results of Elsis PRO for the full year 2021 are included in the financial statements. The Novian group of businesses 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
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