BMIT Technologies Group recorded €7.7 million in profit before tax in 2023, a year which saw increased investment aimed at diversifying the group’s operations. The pre-tax profit figure is 8.2 per cent lower than 2022 (€8.3 million).

The results were published in the group’s Annual Report for the year ended 31st December 2023, released on Monday.

BMIT Technologies Group is made up of BMIT Technologies plc, BM IT Limited, BM Support Services Limited, and Bellnet Limited. It provides customers with data centre and hosting services, public, private and hybrid cloud services, as well as managed IT services. During 2023, it acquired the 278 sites that make up GO plc’s passive telecoms assets, necessary for the telecoms company to function, for a total figure of €46.6 million. BMIT is now responsible for maintaining the cell towers and providing GO with hosting and co-location services for an initial 30-year period.

The cell towers were in operation for the final month of 2023, and resulted in revenue of €328,000, and when excluding pre-acquisition costs and deducting borrowing costs and amortisation charges, amounted to a net loss of €351,000. Despite this, BMIT stated that the first month of operations is “not reflective of the expected performance,” with profitability expected to improve.

In total, BMIT’s revenue for 2023 amounted to €28.7 million, 11.2 per cent higher than 2022 (€25.8 million). This was largely a result of a record year in terms of revenue for data centre, cloud and managed services, which went up by €2.5 million to €28.3 million (2022: €25.8 million). Cloud services remained the main driver for revenue growth, going up by 38 per cent from the previous year.

Cost of sales and administrative expenses, including depreciation and amortisation charges, but excluding finance costs, increased by €3.5 million to €20.7 million (2022: €17.2 million). These costs include a €556,000 expense for the cell towers. BMIT stated that the increase in administrative expenses is primarily attributed to sustained investment in infrastructure, systems, processes, and people.

Finance costs for 2023 grew by 38.8 per cent to €347,000 (2022: €250,000), mainly due to interest charges tied to loans to finance the consideration for the transfer of assets for the cell towers.

The aforementioned investment in its towers operations left a substantial impact on BMIT’s assets and liabilities, with total assets going up from 2022’s €25.5 million to €80.7 million in 2023. Loans from banks and other parties to finance the transaction propelled borrowings to up by €45 million.

BMIT closed the year with a cash balance of €3.8 million (2022: €6.3 million), and during 2023, €1.6 million were paid as part of the consideration for the towers operations, while a €5 million net dividend was also paid.

The Board of Directors have recommended that at the forthcoming Annual General Meeting, the shareholders approve the payment of a net dividend of €0.02456 per share, amounting to a total net dividend of €5 million, paid by way of scrip.

Commenting on the performance, recently-appointed BMIT Chairman Nikhil Patil said that during 2023, the group experienced a “significant transformation.”

BMIT Technologies Chairman Nikhil Patil

“We live in a fast-paced world driven by technological change and an ever-fluid business landscape. As a business we face several challenges, and it is our ability to proactively address them that sets us apart. This commitment has been a key factor in presenting another positive financial year for BMIT Technologies,” he affirmed.

Mr Patil remarked that the past year was pivotal for the group, as the acquisition of the cell towers from GO “ensures stable revenues and margins for BMIT in the foreseeable future,” while new business opportunities in this space are also being explored.

“Amidst this transformation, I am pleased to report that our core business continues to perform well, even though considerable changes remain,” Mr Patil said.

He proceeded to thank the Board of Directors, the management team, and the group’s employees, before concluding with: “The year under review has been one of considerable change, positioning our company for sustained success in the evolving business landscape. I am confident in our ability to confront challenges head-on, leveraging our strengths and embracing opportunities as we continue to create long-term value for our shareholders.”

For his part, CEO Christian Sammut clarified that BMIT’s operations are set against the backdrop of a small market in Malta, and hence the dynamics of its client base, market size, and the technology landscape “demand continuous adaptation.”

BMIT Technologies CEO Christian Sammut

He said that its core business, focused on colocation, data centre services, cloud, and managed IT services remains “pivotal” to its revenue stream. “However, understanding that the demand for some of these services is evolving and in cases limited, we embarked on a transformation journey to secure our future in a competitive market,” Ing Sammut remarked.

“Technology itself presents a challenge, requiring us to stay one step ahead, adopting and adapting to new products and services, and, if necessary, adjusting existing technologies and services to meet our customers’ needs,” he added.

Looking ahead, Ing Sammut said that BMIT’s vision is to be a “leading digital infrastructure and manage services provider offering hybrid solutions to an enhanced customer base.”

“Through strategic investments in our digital infrastructure and product diversification, we have overcome challenges and positioned ourselves for sustained progress in the ever-changing landscape of the tech industry,” Ing Sammut concluded.