Safetech Innovations, a Romanian cybersecurity company listed on the AeRO market of the Bucharest Stock Exchange, post total operating revenues of 28.3 million lei in the first nine months of 2022, a 49% increase compared to last year and a net profit of 5.3 million lei, a 134% increase.
In the first nine months of the year, the turnover amounted to 20.8 million lei, a 58% appreciation, mainly due to the upsurge in the cybersecurity service contracts.
“The first nine months of 2022 saw activity characterized by increasing demand for our cybersecurity services. We recorded an increase in both the number of recurring contracts and new clients, managing to add four new clients to our portfolio in the third quarter alone. The net profit margin improved significantly in the first nine months, from 17% in 2021 to 25% this year. The result is satisfactory because in 2019, our margin was below 12%, and we promised investors that we would increase it to 20% by expanding the service portfolio. We are pleased to have delivered on this promise to investors by maturing our business and setting achievable goals that benefit all Safetech shareholders. At the same time, we are happy to share with all SAFE shareholders profits that the company generated by putting to use the capital raised from the market, proving that even growth companies can pay dividends as long as they have a solid business model and a good cash flow,” stated Victor Gansac, Chairman of the Board of Directors and CEO of Safetech Innovations.
In terms of the company’s international activity, the UK entity is currently operational, employing three people in addition to the general manager, Anca Stancu. The activity of the UK company will focus in the coming period on the sale of Safetech services and solutions in the UK and the USA. As for the entity in the United Arab Emirates, this will be operational in the following period, with all the necessary documents being submitted to the relevant authorities. As for the US entity, the company estimates that by the end of the year, it will be established, and from 2023 the it will become operational.
Regarding the transfer of Safetech Innovations to the Main Market of the Bucharest Stock Exchange, the company published the financial statements for 2019-2021, prepared according to IFRS standards and audited last week. Currently, Safetech is in the stages of finalizing the Prospectus and submitting it to the FSA.
“We are delighted to be getting closer to delivering on another promise to our shareholders – the transfer to the Main Market. Our objective is to ring the bell at the Bucharest Stock Exchange to mark this transfer before the publication of the preliminary financial results for 2022, namely by the end of February 2023. We want to already include in that report the financial statements that will be in accordance with IFRS,” added Victor Gansac.
In addition to the transfer to the Main Market activity, during this period, the company is in the busiest quarter of the year, one in which the most revenues are generated and which has a significant impact on the bottom line. This could also be seen last year when, in the fourth quarter of 2021, Safetech generated 43% of its annual revenue and 63% of its net profit.
Safetech Innovations is listed on the AeRO market as of January 29, 2021, and is traded under the symbol SAFE. Currently, the company has a market capitalization of over 180 million lei.