eMAN will start working for the German Volkswagen

eMan has entered a framework contract with a German carmaker. For two years, the Prague software house will provide IT services, including the development of “smart” user applications. The framework contract is for 4.5 million euros.

Over a year of negotiations, culminating in a victory in the supplier “hackathon, ended up in a co-operation between the Czech developer and one of the largest automotive manufacturers in the world. Thanks to the total value of the contract of 4.5 million euros (approximately 114.5 million CZK), this is one of the largest contracts of the year for eMan. The Volkswagen Group has been part of the largest domestic car manufacturer, Škoda, for 30 years, however, the applications will be designed for the Volkswagen brand itself.

“All projects are exclusively for the Volkswagen brand. In the future, however, we do not rule out overlap between other brands owned by the group,” adds Jan Kučera from eMan, director of the company’s division, which covers the contract.

Car connectivity will be crucial

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 user and the car. This can mean remote control of the car, checking the amount of fuel or the condition of the batteries, etc.

“Vehicle connectivity has been a major topic for the industry in recent years. In practice, we extract data from various measuring devices in the car in real time, which allows the end user to immediately monitor its condition. For example, before going to work, when, for example, the end user remotely turns on the car heating,” comments Kučera.

Successful entry in the START market and positive annual evaluation of analysts

Last year, eMan passed a very important milestone, when it made an IPO, and thus entered the Prague Stock Exchange. The company subscribed 914 thousand shares in the START market with a total value of 46.6 million CZK. The success story was also reflected in a significant excess of demand over supply with 111 percent.

eMan successfully entered the START market of the Prague Stock Exchange on 31st August 2020, and since then the share price has climbed to the current 84 CZK (64% appreciation). 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 sets the target price of the eMan share for 2021 at 86 CZK with the recommendation to “hold”.