Change main feature of 2023, more expected in 2024 – Harvest Technology Chairman Keith Busuttil

Chairman Keith Busuttil has summed up 2023 as another year of “considerable change” for Harvest Technology plc, with further developments set to take place this year.

His comments came as part of the Malta-based technology group’s Annual Report and consolidated financial statements for the financial year ended 31st December 2023, published on Thursday. Harvest Technology delivers systems and software engineering, security solutions and services, e-commerce platforms, electronic payments solutions, and a number of other services.

In the report, Harvest Technology stated that it generated €14.6 million in revenue, a significant drop from 2022’s €16.3 million. While the group managed to decrease its cost of sales by 15.4 per cent to €8.5 million, pre-tax profit still took a substantial hit, dropping by a steep 60.3 per cent in 2023, amounting to €819,910 (2022: €2.1 million). Total assets as at the end of 2023 amounted to €20.6 million, contracting slightly from the €21.2 million reported in the previous year.

This decline in performance is largely a result of delays in certain contracts that were expected to be awarded in 2023, yet were then eventually awarded in 2024. Additionally, the group also incurred a €534,473 provision charge for an unsuccessful project by its subsidiary Apco Limited, after a sub-contractor failed to deliver contractual obligations.

Taking these factors into account, Mr Busuttil acknowledged that in 2023, Harvest Technology continued to develop its businesses despite a number of challenges on all fronts.

He affirmed that the group faced difficulties due to macroeconomic headwinds and the delays of key contracts, yet the year was also a memorable one after subsidiary Apcopay Limited launched Synthesis, a payment orchestration platform.

“During the year, the Board embarked on a restructuring plan to focus more management resources and responsibilities at the subsidiary level. These changes were necessary to expand the range and quality of our services, but also to ensure successful completion of new projects and business development,” he said.

Mr Busuttil added that this approach allowed Harvest Technology’s Board of Directors to “get closer” to the operations of the subsidiaries as they “continued to develop new growth initiatives.”

He also expressed his satisfaction at the strong growth momentum that Apcopay and its newly-launched Synthesis experienced during the year. Mr Busuttil also acknowledged that Apco Limited experienced “another year of transition as it evolves and broadens its product offering,” while PTL continued to focus on expanding its service offering both locally and internationally.

“In conclusion, 2023 was another year of considerable change and we expect further changes in 2024 as we continue to position the business to develop new growth opportunities in an ever-changing technology landscape,” he remarked, before thanking the Board of Directors for its “continuous contribution and support” throughout the year.

In the Annual Report, the Board of Directors also announced that it has resolved to distribute a final net dividend of €113,906, equivalent to €0.005 per share. All shareholders included in the shareholders’ register of the company as at 26th April 2024 shall be entitled to receive their respective share, with payment set to be made on or around 10th May 2024.