Safetech Innovations (BVB: SAFE), a Romanian cybersecurity company with offices in Bucharest, London, and Abu Dhabi, estimates at the consolidated level, a turnover of 58.1 million lei and a net profit of 13.9 million lei in 2023. The estimated consolidated results include the financial performance of the entity in Romania and the one in the UK, in which Safetech Innovations holds a 67% stake.
“In 2023, our main objectives are the consolidation of our business in Romania by increasing the number of new clients and the number of recurring contracts, as well as the development of the UK branch so that it already starts to produce results. In terms of investments, in 2023, we will focus on expanding our technical capabilities, developing our products, and introducing new solutions to the portfolio. At the same time, at the end of last year, we implemented a series of new internal procedures at the level of the business development department, and we expect that starting this year, we will accelerate the sales of cybersecurity services and solutions. Over the past year, we have seen a significant increase in requests for cybersecurity services from companies that are not required by law to implement such services. This is an excellent sign as more and more entities realize the importance of prevention in the case of potential cyberattacks. Therefore, we expect 2023 to be another busy year for us, with diverse activities that will produce beneficial results for the company and SAFE shareholders,” stated Victor Gansac, Chairman of the Board of Directors and CEO of Safetech Innovations.
At the individual level, Safetech Innovations targets total revenues of 51.8 million lei, a 44 million lei turnover, and a net profit of 12.6 million lei. Safetech Innovations’ targeted results at the individual level in 2023, compared to the estimated revenue and expense budget for 2022, represent a 10% increase in turnover and a 24% increase in net profit compared to the previous year’s estimate. The company’s management estimates that approximately 45% of the revenues generated at the individual level will come from cybersecurity services. In comparison, about 55% will represent revenues from implementing cybersecurity solutions.
As for the UK entity, the management estimates a 14.1 million lei turnover and a net profit of 1.4 million lei in 2023. The US entity, which will be established in Reston, Virginia, in the coming period, will not record significant revenues in 2023. Also, Safetech Innovations will not include in the consolidated results of the subsidiary in Abu Dhabi, United Arab Emirates, as the company holds a minority stake in that entity.
In 2023, the company plans to introduce new services and solutions, such as advanced cybersecurity testing. Also, in addition to continuing the development of its products, iSAM, ToR-SIM, and SafePic, Safetech Innovations targets the creation of a new company product, developed from its resources, and through which the company will support clients in the process of recovering the data lost following a cyberattack.
According to the expectations of the company’s management regarding the future of cybersecurity, the need for services in the field will continue its upward trend, considering that a new directive in this direction has already been adopted at the European level, NIS 2. This will replace the current directive on network security and IT systems. One of the significant changes is expanding the scope of the rules, which for Safetech Innovations means opening up an extended area of new potential clients.
Safetech Innovations is listed on the Main Market of the Bucharest Stock Exchange as of February 6, 2023, and is traded under the symbol SAFE. Safetech Innovations will report its preliminary financial results for 2022 on February 23, 2023.