Safetech Innovations, the cybersecurity leader on the Romanian information security market, closed 2018 with a net profit of RON 1,100,000, a historical record for the company, double compared to result registered in 2017, of RON 529,000.
In terms of revenues, the company registered in 2018 a turnover of RON 7 million, a decrease compared to the result from 2017, of RON 8 million. The drop in the revenues was expected by the management and it was caused by the shift in the strategy as the company is now more selective in terms of projects it delivers to clients. During 2018, the company has heavily focused on restructuring its services and solutions offer, in order to be able to focus primarily on the more complex cybersecurity projects, which also have a higher profitability. The goal is for Safetech to reach in the coming years the overall profitability ratio of estimated 25 percent.
“We are extremely satisfied with our financial results for 2018 that our team was able to deliver despite the fact that the market conditions were not the most favorable. Taking into consideration our plans to attract new capital that will help us grow our business further, we are confident that the promising results and the significant increase in profit is a good sign to our potential shareholders and a proof that cybersecurity is an attractive sector when it comes to investments” said Victor Gânsac, CEO of Safetech Innovations.
In 2019, the company is considering raising fresh capital for development and is considering listing on the Bucharest Stock Exchange’s AeRO market. The capital raised will fuel investments in proprietary IT products and solutions in the area of cybersecurity. The company plans to launch its first proprietary product by the end of February 2019, following significant investments made throughout 2018.
For further optimizing the financial performance, starting from 2019, Safetech will reduce the sales of third-party IT solutions in order to focus exclusively on delivering proprietary cybersecurity services and products to its clients. On top of that, the company plans to increase its revenues coming from international markets. In 2018, approximately 10% of Safetech’s revenues came from international projects; the company intends to increase this number to 25% in the coming years, decreasing its dependency from the Romanian market.
In terms of the local market evolution, following the recent transposition of the Network and Information Security (NIS) Directive the on security of network and information systems into the Romanian legislation (Law 362/2018), the company is expecting further increases in its financial performance in 2019. NIS Directive represents the first, EU-wide rules on the security of information that apply to operators of essential services and digital service providers (DSPs). The “operators of essential services” referred to in the legislation include enterprises in the energy, transport, banking, financial market infrastructures, health, drinking water supply and distribution, and digital infrastructure sectors. Romanian companies from these industries will have to adapt to the new rules in place by the end of first half of 2019. The company has already registered an increased interest in its services, having closed January 2019 being the best first month ever registered by the company. The positive trend on which the cybersecurity market is currently at, is expected to continue in the coming period.
Established in 2011, Safetech Innovations is currently the only dedicated information security company on the Romanian market, specialized in the field of cybersecurity and implementation of cybersecurity solutions. Safetech Innovations’ services include data protection, identification of vulnerabilities and risks, implementation of cybersecurity solutions and measures, response to cybersecurity incidents as well as creation of organizational culture oriented towards safety. The company offers a ‘cybersecurity one stop shop’, able to assist organizations in increasing their cyber resilience and solving any cybersecurity problems that could arise.
The company has a large portfolio of clients, having worked with more than 20 key institutions from the financial and banking sector, local energy and utilities companies as well as international players such as ArcelorMittal. Safetech operates the sole Computer Emergency Response Team (CERT) in Romania, available to clients from both public and private sectors that offers continuous monitoring of cybersecurity threats and intervention in case of security incidents. STI CERT is accredited at the European level by Trusted Introducer and offers 24/7 monitoring system, alerting, incident management and forensic. Safetech is also the only Romanian company that is partner to NATO’s Industry Cyber Partnership.