Simtel Team posts a turnover of RON 9.7 million in the first quarter of 2022, up 57% compared to Q1 2021

Simtel Team, a Romanian engineering and technology company listed on the AeRO market of the Bucharest Stock Exchange, posts a turnover of 9.7 million lei in Q1 2022, an 57% increase compared to the same period last year and a net profit of 0.29 million lei, an 137% appreciation compared to the loss of 0.77 million lei recorded in Q1 2021.

The company targets operating revenues of over 100 million lei for this year.

“The first quarter of 2022 was a period of solid growth and performance for the Simtel Team. The context of European directives on environmental protection, rising energy prices, European energy security affected by the invasion of Ukraine by Russia, and rampant inflation have led more and more companies, from Romania and abroad, to implement renewable energy solutions. The growing demand for such solutions has also been felt in our business. ANT Power, the company we decided to invest in at the end of 2021, has fast and sound growth. As of this year, in addition to the forecast of energy production in photovoltaic parks, we also make a production forecast for wind farms with a very high degree of accuracy. Despite the tense geopolitical situation, we look to the future with confidence. The signed and ongoing contracts make us optimistic that by the end of the year, we will have successfully reached the BVC figures approved by the OGMS on April 8, 2022,” stated Iulian Nedea, co-founder and CEO of Simtel Team.

In Q1 2022, Simtel Team signed 14 new contracts to install photovoltaic power plants with an installed capacity of 17 MWh. The company’s client portfolio has expanded with 10 new clients, including CTPark, Automobile Bavaria, Avicola Focșani, and Proleasing Motors, and companies from various industries: tourism, agriculture (farms), factories, and logistics facilities. Simtel also has contracts signed with 63 clients totaling approximately 5 MWp and which have financing contracts approved by the government project Electric UP. Another 9 MWp are currently being implemented, contracts signed at the end of 2021, including the 2.2 MWp Fan Courier contract, Penny Market (REWE Group), and Kaufland. In addition, the company has a firm order for the construction of 100 photovoltaic power plants, each of 3kWp, for the mobile operator Telekom Romania, which adds to the other 300 already built by Simtel in 2021. Also, in the telecommunications industry, Simtel continues to build mobile base stations and, more recently, is installing such stations in Germany under a contract with a local integrator.

In the first quarter of 2022, the green energy division had the largest contribution to the turnover – 80%, in line with the share generated in Q1 2021 but with a significant increase in the absolute value of 2.9 million lei. Therefore, this division, which focuses primarily on energy efficiency solutions through the construction, maintenance, and operation of photovoltaic power plants for retailers, on their roofs or in large on-site photovoltaic parks, has contributed approximately 7.7 million lei to the turnover for Q1 2022, compared to 4.9 million lei in Q1 2021.

Telecommunications contributed 10% to the total turnover and generated revenues of approximately 1 million lei in Q1 2022, compared to 1.2 million lei in Q1 2021. The share of other business lines increased significantly, from 1 % to 10% of the total turnover, due to the success of the investment in the company ANT Power Energy SRL, through the activity of optimizing the energy production forecasts and the revenues of the renewable energy producers.

“The good results recorded in Q1 2022 were not easily achieved. The challenges for the global supply chain are growing from quarter to quarter. Thus, to avoid delays in supply and increase in inventory prices, we decided to purchase photovoltaic panels in advance and not supply ourselves only when we start certain projects. In addition, we looked for alternative sources of supply. We will continue to look for other suppliers to ensure that we can always offer our clients innovative energy solutions,” added Iulian Nedea.

In the context of the growing demands for alternative energy sources, on May 18, 2022, Simtel Team started the share capital increase operation. In the first stage, between 18 and 24 May 2022, Simtel shareholders have the opportunity to trade the preference rights, SMTLR01. Subsequently, between May 27 and June 25, 2022, SMRLR01 rights holders will be able to subscribe to newly issued shares. 10 preference rights are required to subscribe for a new share, rounding to the nearest lower natural number. The price per share in the first stage is 18.1994 lei/share. The unsubscribed shares will be offered at 18.2094 lei/share in the second stage of the operation.

The capital raised from this operation will support the company in expanding its business and projects with its partners, such as large discount networks and interior and exterior design retailers. The company’s management believes that the available opportunities combined with the visibility and recognition in the market, gained by listing on BVB but also thanks to the projects delivered so far to some of the strongest brands in the respective industries, will contribute to capturing a significant market share in the renewable energy sector.

In 2022, Simtel Team targets operating revenues of 103.7 million lei, EBITDA of 14.9 million lei, and a net profit of 11.6 million lei. The financial results will be increased with the support of the regional centers opened by the company in Cluj, Timișoara, and Bacău, through which Simtel will access more projects at the national level.

Simtel Team is listed on the AeRO market of the Bucharest Stock Exchange as of July 1, 2021. Currently, the company has a market capitalization of over 160 million lei.

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