Polaris IT Group focuses on the development of hardware and software based on AI

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Polaris IT Group focuses on the development of hardware and software based on AI

Business profile

Polaris IT Group SA is a representative of the IT sector and a public company listed on the NewConnect alternative market (ticker: PIT), run by the Warsaw Stock Exchange.

The company is an IT service provider and consulting company in the field of information technology. It offers individually designed and innovative solutions in the field of security technology, artificial intelligence, biometric identification and image recognition and analysis, streaming and online education, as well as healthcare.

In July 2020, the Polaris IT Group SA Capital Group was established when Polaris IT Group SA acquired 100% of shares in the share capital of IAI (Industrial Artificial Intelligence Kft.), which holds 100% of shares in another Hungarian entity ISRV Zrt. At present, IAI does not conduct activities generating any sales revenue, while ISRV is the company conducting operating activities on the largest scale within the Polaris IT Group SA Capital Group.

The main business lines of the Polaris IT Group SA Capital Group are artificial intelligence and the development of computer hardware and software.

The majority shareholder of Polaris IT Group SA is the British company Bit Pyrite Ltd, controlled by the President of the Management Board, Gábor Kósa, with its registered office in London, holding a majority stake of 66.24% of shares, while currently 33, 76% of the company’s shares remains  as a free float.

IT services and technology market

It should be mentioned that the Polaris IT Group SA Capital Group has many years of business contacts in China and East Asia, where it purchases personalized notebooks, tablets, servers and sensor devices – most often directly from manufacturers. At the same time, the premium partner status of Asian entities also allows to provide own customers with personalized and individually configured IT devices, equipped with pre-installed software and priority manufacturer support.

The above-mentioned purchasing opportunities and trade relations, together with own development possibilities, should lead in the future to bigger potential of the Polaris IT Group SA Capital Group to generate revenues, thus meeting the visible expectations and market demand in ​​IT services and technologies.

Financial results and valuation ratios

The Polaris IT Group SA Capital Group ended 2022 with revenues of nearly PLN 45 million and a net profit of approximately PLN 3 million. Only at the unit level Polaris IT Group SA generated sales revenues of approximately PLN 7 million at the end of last year, compared to previous almost PLN 4 million, which means an increase of about 75% year on year.

As the Management Board of Polaris IT Group SA emphasizes in the last periodic report Polaris IT Group SA is constantly working on preparing large projects that started after 2022 and which, as the company hopes, will generate a significant increase in consolidated financial results already this year and such a situation will be affected by, for example, contracts with the public sector, which the hungarian subsidiary iSRV Zrt. is applying for as part of its participation in consortia of companies.

The current stock market capitalization of Polaris IT Group SA is slightly over PLN 47.5 million with relatively low and attractive, in relation to other entities from the IT industry, valuation ratios P/BV (0.80) and P/E (16.00).

Operational and strategic goals

At the operational level the Polaris IT Group SA Capital Group is focused on continuing its current activities in the area of ​​software systems development, development of encryption solutions and hardware, development of research on artificial intelligence, trade in hardware and software, trade in hardware and software related to the healthcare market and the provision of services related to with this hardware and software, as well as developing own online learning solutions.

At the same time, the Polaris IT Group SA Capital Group is also actively looking towards new business areas, where it sees the opportunity to use its own skills in software development using technologies based on blockchain and AI solutions. One of them is logistics, where it intends to develop IT and logistics algorithms for freight transport. The second is the energy sector, where it plans to contribute to the implementation of effective control of high-performance energy storage devices – on industrial scale.

The strategic goal of Polaris IT Group SA remains to satisfy every unique need in the IT area using innovative solutions based on artificial intelligence and comprehensive development of hardware and software. To reach this goal the company is constantly expanding its activities with projects based on its own products and services, manufactured by the hungarian subsidiary company iSRV Zrt.

In the longer term one of the key strategic visions is the expansion of the Polaris IT Group SA Capital Group by further entities from the industry that will complement its business profile and strengthen its market position, especially based on specialist competences and knowledge or new business development opportunities.

The posted content is for informational and educational purposes only and is always an expression of the personal views of its author. They do not constitute, either in whole or in part, “recommendations” within the meaning of the polish Regulation of the Minister of Finance of October 19, 2005, on information constituting recommendations regarding financial instruments or their issuers (Journal of Laws of 2005 No. 206, item 1715). The author is not responsible for any investment decisions made based on the published content.