eMan has entered into a framework agreement with the German car giant Volkswagen. For two years, the Prague software house will provide IT services, including the development of "smart" user applications. The contract is for 4.5 million euros.
eMan starts working for Volkswagen [PRESS RELEASE]
(Internal information)
After a year of discussions culminating with a victory in the supplier’s “hackathon”, the Czech developer eMan has hooked up with one of the largest automotive manufacturers in the world. With a contract value of 4.5 million euros, this is one of eMan’s largest contracts this year. eMan already services the Czech car manufacturer Škoda, part of the Volkswagen Group Group for 30 years.
“All projects will be exclusively for the Volkswagen brand. In the future, however, we do not rule out overlap between other brands owned by the group,” added Jan Kučera, eMan’s Division Director, whose department is responsible for the order.
Central will be car connectivity
The development of applications, mostly mobile, will fall primarily into the category of vehicle connectivity. In layman’s terms, the interconnection of information and communication technologies between the car and the user. This can mean remote control of the car, checking the amount of fuel, or the batteries, etc.
“Vehicle connectivity has been a big issue for many industries in recent years. Our job is to extract data from various measuring devices in the car, in real time, immediately allowing the driver to monitor conditions. For example, before going to work, remotely turning on the car heating,” Kučera commented.
Successful entry onto the START market and positive analysts’ annual evaluations
Last year, eMan passed an important milestone when it went public and entered the Prague Stock Exchange. The company subscribed for 914 thousand shares on the START market with a total value of 46.6 million CZK, and there was an excess of demand over supply of 111 percent.
eMan successfully entered the START market on the Prague Stock Exchange on August 31, 2020 and, since then, the share price has climbed 64%, to a current 84 CZK. eMan expects long-term growth of its revenues by 20% per year. In 2021, the company would like to achieve revenues of 210 million CZK, EBITDA of 21.5 million CZK and a net profit of 8.4 million CZK.
From 2022, the company could start paying a dividend of 40 percent of net profit, according to an analytical report from the consulting company STARTEEPO. Among other things, it set the target price of the eMan share for 2021 at 86 CZK with the recommendation “hold”.
