Computime Group, a company that has consistently set the standard for innovation and excellence in the IT space, has grown into a local market leader, driving digital transformation across industries and reshaping the way businesses leverage technology.
Today, as the company embarks on a pivotal step in its journey - its share offer to the public - Group CEO, Andrew Borg and Group CFO, Alistair Mangion, recount the strategic business decisions that have resulted in a successful 45-year story and what lies ahead as they enter this exciting new phase.
Could you provide insight on Computime (including history and track record) and the proposed share offer?
Computime has a 45-year-old track record of providing IT solutions to corporate clients in Malta and abroad. It has grown steadily and organically during this time and is now a key solutions provider in the IT Infrastructure, business software and fintech space, employing around 100 professionals. It is privately owned and at this juncture, the next key milestone is to ensure succession by the partial float of 37 per cent of the company’s ownership. With technology and fintech now being a utility in any relevant business operation, we keep providing first-rate solutions to the local business community; a community which includes a large percentage of financial institutions and other leading industries. The company is led by a very strong management team, strategically focusing on the steady growth of all our divisions in the infrastructure, business applications and our own products in the fintech arena.
What are the main products and services that Computime offers?
The three divisions of Computime consist of the Systems Integration, Business Software and Fintech divisions. The first relates to the design, implementation and support of the IT infrastructure needed for a corporate business to operate: networking, information security, systems, cloud and managed services. The Business Software division is driven by four business units: an ERP implementation team, a financial management solution team, asset management team and a custom software development team.
The third division relates to in-house developed fintech products: the BRSANALYTICS suite of regulatory reporting software, used by many of the financial institutions in Malta and ComplyRadar, which is an AML transaction monitoring solution used in the international market. Recently we have teamed up with one of the Big 4 firms in Malta to develop and market another product, BRS CESOP. All three software suites are well established and successful in their own right. We keep innovating with new products utilising leading technologies such as AI and machine learning.
What are the competitive strengths and key attractions of Computime’s business model, and what is the company’s strategy to achieve further growth?
The Group’s main strength lies in its extensive tech sector experience gained through almost 45 years of operation in the industry. Such strength comes in the form of long-standing partnerships with leading global operators, a highly skilled and experienced workforce, a loyal “blue-chip” customer base, and an experienced management team having decades of combined tech business experience. The business model itself benefits from a highly diversified portfolio of solutions and services, ranging from the provision of hardware and managed services to FinTech and ERP software. Another key element of the model is the substantial recurring revenue that has been built over time, currently amounting to around 66 per cent of total revenue. This recurring revenue adds to the stability of the profits and the cash flows, and effectively de-risks the business.
You mentioned that recurring revenue currently amounts to around 66 per cent of total revenue. Can you elaborate?
Traditionally IT depended on project work. As a result, revenue was very dependent on a steady stream of projects. This leads to many spikes and dips in revenue and stresses cashflow and profitability. At Computime, we have always been aware of this challenge so starting many years back, we consciously identified opportunities to increase our subscription, support and maintenance and stabilise the business. In practice this means that at the start of the financial year a large portion of our annual revenue is already contracted. Consequently, this allows for better business planning and smoother operations.
What role has innovation played in your previous successes, and how do you see it influencing your strategy post share offer?
Innovation has always been a key strength of the Group, whether this means coming up with new products, or upgrading operational processes, or engaging with new partners and/or alliances. Over the years, we have been particularly successful at coming up with our own IP software products.
This started in 2015 with the launch of ‘BRSANALYTICS’, our first internally developed software, followed by ‘ComplyRadar’ in 2019. A third product, ‘BRS CESOP’, of which the Group holds 50 per cent of the IP rights, was launched in 2024. Our FinTech division and the products we have developed within this space, collectively address the regulatory reporting requirements and anti-money laundering obligations of organisations operating in highly regulated sectors.
Internally, we have a structured R&D process which we developed over the years, involving key members of staff in the generation of ideas, the funnelling of these ideas into qualified opportunities and the commercialisation of the final products. Our most recent project is the creation of an AI-powered reporting tool that assists customers to easily query their business data using natural language. We see huge potential in this area and are committed to invest further.
Interested investors can access the prospectus on Computime's website.
Prospective investors are urged to read the prospectus before making an investment decision in order to fully understand the potential risks and rewards associated with the decision to invest in the shares forming part of the share offer. The approval of the prospectus by the MFSA should not be understood as an endorsement of the shares forming part of the offer or admitted to trading on a regulated market.
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