Transition Technologies: anti-crisis plans work
Transition Technologies Capital Group achieved operating revenue of over PLN 200 million in the first half of 2020, which is a 25% increase year to year.
This week, the company published its results for the first two quarters. And although the ambitious plan of 35% growth was difficult to implement due to the pandemic, the results are optimistic, and the goal set in January to earn PLN 500 million is still within reach. Thanks to an appropriate revenue structure, focus on selected sectors (energy, gas, medical IT and industry) and products relatively less affected by COVID-19 problems, the Group can still implement ambitious development plans, as the CEO of TT, professor Konrad Świrski says:
Another very good semester with a strong upward trend is behind us. We managed to get rather smoothly through the market turmoil caused by the coronavirus, and we have been preparing anti-crisis plans for some time, which worked. The IT sector seems to be relatively resistant to the impact of the pandemic. In the longer term we anticipate changes in the way of doing business, that will strengthen the role of IT companies.
The company’s revenues come mainly from solutions in the areas of optimization of industrial processes (especially the Internet of Things, Virtual Reality / Augmented Reality, Product Lifecycle Management) and advanced wholesale trade opportunities in the energy, gas, chemical, and petrochemical sectors. More and more orders also come from the dynamically developing healthcare sector. Transition Technologies is also very active in modern outsourcing (model of managed services) on foreign markets and in the Polish public sector, it was mentioned.
In the first half of 2020, all these areas were not so exposed to the COVID-19 problem, which translated into another record increase in the Group’s turnover. We even want to use the current market situation to expand our international structure. We employ experienced foreign managers who are responsible for the company’s development in Western European countries, and in the coming weeks we will open another subsidiary in Munich. Of course, we see a lot of uncertainty in the markets and many conflicting economic signals, suggesting that the return of the world economy to its normal course will take much longer and the post-COVID-19 boom is only in 2021 — added the president.
The company plans to use the current time to develop new product lines and additionally take advantage of the opportunity to change customers’ business models (widespread acceptance of remote work, cooperation with key IT partners, the enhanced role of cybersecurity). Changes in the global economy show that the role of the European industry (reindustrialization based on high automation of processes) and “Nearshoring” — closer cooperation in this area with European IT companies — will be an additional growth impulse for the Group. Transition Technologies wants to be one of the European leaders in the field of IT services for modern industry, new energy, and new medicine. There are also plans to look for complementary companies for the merger and acquisition processes.
We still have a strong market position, long-term orders, we are more and more recognizable on European and world markets, we find new niches, we adapt the available technologies to new applications in our own comprehensive implementations. We want to maintain the upward trend at the level of 25% YOY and we are still counting on reaching the level of PLN 450–500 million in revenues throughout 2020 — summed up prof. Świrski.
Transition Technologies is a Polish capital group that brings together IT companies, providing advanced and modern solutions for the energy, gas, industry, and bioinformatics markets. The Group provides comprehensive outsourcing of IT services and software products.
Transition Technologies MS S.A.