The Novian Software and IT Infrastructure Services Group's total revenues for 2023 are €40.3 million, up 21.9% compared to 2022. The Group's EBITDA last year was €1.2 million, down 18.5% year-on-year. Operating profit for 2023 is €140,000, down 72.2% compared to 2022.
“As the demand for digitalization grows, we strive to create value for our customers by meeting their needs, providing them with advanced programming and IT infrastructure solutions and seeking ways to effectively apply innovations, including AI. We are pleased that our steady efforts in this direction are contributing to our business growth both at home and abroad,” said Thomas Vitkus, CEO of Novian Group.
He added that one of Novian's key strengths is its experience developing modern technological solutions for fast and efficient digitalization, upgrading IT infrastructure using container platforms instead of monolithic information systems and deploying new applications and information systems using microservices. “We see a growing demand for such solutions and are building expertise and teams in these areas,” he said.
Looking at its strategic business areas, Novian Group's software development revenues increased by 11.6% last year compared to 2022, from €8.2 million to €9.1 million. Of the Group's strategic areas, the one that saw the largest increase last year (3.3 times) was High Performance Computing (HPC) and Cloud Computing Platforms, with revenues increasing from €1.3 million to €4.3 million.
In the area of Digitalization, revenues are expected to increase by 6.5% to 1.6 million euros in 2023. Among recurring services, IT maintenance projects dominated. Revenues in this area fell by 6.7% last year, from 5.1 million euros to 4.7 million euros.
During the reporting period, Novian Group companies earned EUR 29 million, or 72%, of their revenues in Lithuania. This amount is 15.3% higher than in 2022. Revenues earned in other countries amounted to EUR 11.3 million, 42.9% higher than in the same period last year. Last year, the Group was active in a total of 37 countries.
Enhanced IT Infrastructure Management Services
“Last year was outstanding for Novian Technologies in terms of innovation and geographic expansion. In the first half of the year, we added Rwanda-based Norwegian Registers Development Rwanda to our Technology business line to strengthen our position in Africa. We will also become one of the founder companies of the Lithuanian Quantum Technologies Association in the second half of 2023, contributing to the growth of this innovative technology,” said Gitis Umantas, CEO of Novian Technologies.
He said the company is also focusing on improving the quality of its critical IT infrastructure management services. “We are pleased that our internal restructuring has enabled us to better serve our customers' needs, as shown by the new contracts we signed earlier this year,” the manager said. These services include IT infrastructure maintenance and management, computerized workplace management, service restoration according to service level agreements, and proactive incident management and resolution.
Highlighted among the implemented projects was the introduction of a container management platform solution that provided the Bank of Lithuania, the Register Centre and the Lithuanian Committee for the Development of the Information Society with the tools to run modern applications.
HPC solutions have been implemented to benefit 16 countries in the Southern African Development Community (SADC). The project will enable SADC member states to predict weather faster and more accurately and better prepare for the challenges that come from climate change. An HPC project is also underway in Bangladesh.
In the field of digitization, a project in Moldova stood out for its scale: the country's Public Service Agency will digitize more than 40 million pages. A digitization project has also been started in Sint Maarten, where a digitization center will be set up to digitize around 4 million pages. Novian companies have also carried out digitization projects in Sweden, Norway, Italy, France, Switzerland, Germany and India.
Software developed for public sector, aviation and defense projects
“In the field of software services, we continue to actively pursue the development of national information systems. We have extensive experience in tax and healthcare projects in particular and are also working on projects in the field of defence. Furthermore, we are also strengthening our software services: we not only develop customised information systems but also offer dedicated teams of programmers depending on the project and organisational requirements, for example for embedded software development. Our experts are currently working on various projects in Western Europe,” says Thomas Vitkus.
“A highlight of Novian Pro's project portfolio is the contract awarded to the Brazilian Air Force Airspace Control Agency (DECEA), part of the Ministry of Defense, to develop a system to manage the work schedules of Brazilian air traffic controllers,” noted Novian Pro CEO Limvydas Jančauskas. The company also started new projects as a consortium member of the European Defense Fund program.
Novian Pro also introduced innovation as a service (IaaS) last year to enable organizations to develop AI and other innovations without setting up a separate division. The software services company, which Novian acquired in 2021, was renamed Novian Pro, completing its integration into the group.
Nevertheless, profitability in the Software Services segment was hurt by a significant increase in project costs for services to modernize Lithuania's central public procurement information system. This meant a project loss (negative impact of EUR 660,000 in 2023), resulting in Novian Systems' EBITDA of negative EUR 300,000 last year compared to positive EUR 65,000 in 2022. Normalized EBITDA excluding that loss was EUR 400,000 in 2023. Following the termination by the parties, the company is seeking a resolution of the situation through court or negotiations.
Novian Group consists of Novian Technologies, Novian Systems and Novian Pro in Lithuania, Novian Eesti in Estonia, Andmevara in Moldova, Zissor in Norway and Norway Registers Development Rwanda in Rwanda. The calculation of Novian Group's financial performance for 2023 is based on the audited results of Novian Technologies, Novian Systems, Novian Pro and Zissor and the unaudited results of the other companies in the group. Novian Group is owned by INVL Technology, a company that invests in IT businesses.
Persons authorized to provide additional information:
Managing Partner, INVL Technology
Kazimieras Tonkunas
Email: k.tonkunas@invltechnology.lt
