Simtel Team posts net profit of RON 6.1 million, up 55% compared to 2020

Simtel Team (BVB: SMTL), a Romanian engineering and technology company listed on the AeRO market of the Bucharest Stock Exchange, posts operating revenue of 58.7 million in 2021, an increase of 40% compared to 2020 and a net profit of 6.1 million lei, +55% compared to the previous year. The financial results for 2021 are audited. 

“2021 was marked by multiple milestones for us, including the listing on the AeRO market of the Bucharest Stock Exchange, and in terms of financial results, it was the best year in the history of Simtel. In the context of rising energy prices, the activity in renewable energy has undoubtedly been our key priority, managing to win significant new projects over the past year. In 2022, we plan to continue to grow our business, both organically and through acquisitions. Our long-term vision is to create a strong mix of energy and telecommunications service integrators with robotic hardware and software platforms. For 2022, we estimate revenues of 103.7 million lei, an increase of 76% compared to 2021, and a net profit of 11.6 million lei, +87% compared to 2021. We expect green energy to contribute with 90.4 million lei in total revenues, while telecommunications will bring 9.1 million lei,” stated Iulian Nedea, co-founder and CEO of Simtel Team. 

In terms of financial results for 2021, most of the revenue came from the green energy business line, 69%, in line with the share generated in 2020. Telecommunications contributed 29% to the total turnover, an increase of 1 pp compared to 2020. Therefore, the green energy division contributed approximately 40.4 million lei to the turnover for 2021, compared to 28.9 million lei in 2020. The telecommunications activity brought in 2021 revenues of approximately 17 million lei, compared to 11.8 million lei in 2020. The company’s other activities had a low contribution to total revenues, amid the decision of Simtel Team to focus on the two main lines of business where it is best known in the market and has the best positioning compared to the competition. Consequently, in 2021, the other activities contributed 1.2 million lei to the turnover, a figure similar to 2020. 

Simtel Team’s activity in the field of renewable energy in 2021 is confirmed by the company’s involvement in several important projects to develop this sector. Simtel Team installed two photovoltaic power plants on two Kaufland Romania stores in Bucharest and Focșani. It implemented for IKEA a photovoltaic project on the Pallady store in Bucharest. In 2021, the company also built more than 20 photovoltaic power plants for Penny Market stores in Romania and continued to implement photovoltaic plants for Dedeman stores as the sole supplier. During the past year, the company signed significant contracts for future projects in renewable energy with clients such as REWE Romania and Fan Courier. 

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Also, in the field of renewable energy, in 2021, Simtel teams built over 300 photovoltaic plants, each 3.3 kWp for Telekom Romania at mobile base stations, and implemented photovoltaic plants at Vodafone Romania data centers. The company also designed, supplied, and implemented a network of 35 charging stations for electric cars in Dedeman stores. In addition, Simtel Team has carried out one of the few photovoltaic projects built on the open field in Romania in the last seven years, at Ștefănești Argeș for RadicStar, with an installed capacity of 1MWp on an area of approximately 2 ha. 

In telecommunications, Simtel Team continued its partnership with Telekom Romania and built 428 km of fiber optic infrastructure and 25 telecommunications towers within the Ronet 2 project to cover areas without communications infrastructure. During this period, in March 2022, the company is involved in Germany in a project to build a 5G network for a local operator. 

In 2022, the Simtel Team will continue to invest in the company’s business development. In addition to the existing business lines, namely EPC for renewable energy, telecommunications, industrial automation, the company plans to consolidate the business lines launched in 2021, respectively charging stations for electric cars and the distribution of equipment and components used in the construction of photovoltaic plants. Simtel Team will also complete its expertise portfolio with electricity production by building at least one photovoltaic power plant that will remain the property of Simtel this year, but also with energy forecasting and trading services on behalf of customers, following the acquisition of the 51% stake in the ANT Power company, announced at the end of last year. 

In the second quarter and the beginning of the third quarter of this year, the company will carry out a share capital increase operation. The raised capital will be used for carrying out all signed or ongoing projects that will bring substantial increases in the company’s turnover. In addition to the share capital increase, Simtel Team is involved in discussions with several banks to finance various development projects, but at the same time is evaluating the possibility of issuing bonds on the capital market. 

Simtel Team is listed on the AeRO market of the Bucharest Stock Exchange as of July 1st, 2021. The company has a market capitalization of over 140 million lei. As of October 11th, 2021, SMTL shares are included in the BET-AeRO index developed by the Bucharest Stock Exchange for the AeRO market.