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Romania's Safetech doubles profit in 2018, mulls bourse listing

Romania's Safetech doubles profit in 2018, mulls bourse listing CEO Safetech Innovations

BUCHAREST (Romania), February 7 (SeeNews) - Romanian cybersecurity company Safetech Innovations said on Thursday it is planning to list on the AeRO segment of the Bucharest Stock Exchange (BVB) this year, after doubling its profit in 2018.

Safetech Innovations closed 2018 with a net profit of 1.1 million lei ($264,300/231,900 euro), a historical record for the company, it said in a press release.

The company posted a turnover of 7 million lei in 2018, down from 8 million lei in the previous year.

The drop in the revenues was expected by the management and was due to a change in the strategy of the company, which is now more selective in terms of the projects it delivers to clients, Safetech said.

Safetech added that it aims to achieve an overall profitability ratio of 25% in the coming years.

For 2019, the company is considering raising fresh capital for development and is considering listing on the BVB's AeRO market. The raised capital will be invested 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, following significant investments made throughout 2018.

To further optimise the financial performance, starting this year, 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. Also, the company plans to increase its revenues coming from international markets by 25%, decreasing its dependency from the Romanian market. In 2018, approximately 10% of Safetech’s revenues came from international projects.

Established in 2011, Safetech Innovations is an information security company specialised in the field of cybersecurity. Its services include data protection, identification of vulnerabilities and risks, implementation of cybersecurity solutions and measures, response to cybersecurity incidents as well as creation of organisational culture oriented towards safety. The company has 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. Also, 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.

(1 euro=4.7427 lei)