GeoJunxion NV (ticker: GOJXN.AS) Formerly called AND International
Publishers NV (AND.AS) - Financial & Business update Q3
(Jan-Mar) and YTD (Jul-Mar) 2021/22
Capelle aan
den
IJssel,
The Netherlands, 28
April
2022,
GeoJunxion
reports positive cash
flow for the quarter and year to date,
strong revenue growth and
consistent improvements in the development of new data products and
services towards safety on the road and environmental
sustainability.
The current financial year covers the 12 months
period from 1 July 2021 to 30 June 2022. The third quarter of this
financial year covers the period from 1 January to 31 March 2022,
corresponding to Q3 of the financial year 2021/22. The first nine
months cover the period from 1 July 2021 to 31 March 2022.
In the third quarter, GeoJunxion’s business
continued to show resilience and good performances. Revenue
grew by 76% compared to
the same quarter of the previous financial year and
order intake
showed growth of
about 81% again
compared to the same period of last year. For the first nine months
of 2021/22 (from June to March) the growth on the order
intake is of about 57%
compared with the same period of the previous year and
revenue grew by a
very encouraging
63% for the same period. It’s
also worth remarking that the cash flow was
positive for both the quarter and the accounting year to
date, showing clear evidence of the on-going turnaround.
The main driver for the growth realized in the
current accounting year is coming from the Location Intelligence
Services. These have attracted the attention of public and private
companies in various industry sectors and resulted in the increased
strength of our backlog and opportunity pipeline. It is also worth
noticing that order intake continues the positive trend in the
diversification across all our product lines and services. We also
see a transition from one-off to recurring multi-year business
opportunities.
FINANCIAL
HIGHLIGHTS
Q3
(JANUARY - MARCH)
2022 and
YTD (JULY 2021
– MARCH
2022) VERSUS THE SAME
PERIODS IN THE FINANCIAL YEAR
2020/21
- Positive Cash Flow
for Q3 2021/22 (+€228K). Positive Cash Flow for the 9 Months in
2021/22 (+€79K).
-
76% Revenue growth for Q3 2021/22
compared to the same period in 2020/21. 9 months growth
+63%.
- Flat Operational
expenses (OPEX) for Q3 2021/22 compared to the same period in
2020/21. 9 months OPEX up by 1% YoY.
- 57% improvement in
Operating result for Q3 2021/22. 67% improvement
for the 9 months of 2021/22
- EBITDA was
positive again in Q3 by €32 K. For the 9 months
+€270 K
- Consolidated 31 March 2022
cash-position equals €902 K.
OUTLOOK FOR THE ACCOUNTING YEAR
2021-2022
While Covid-19 is still hampering various
businesses and a new threat is raising from the conflict in Ukraine
we continue experiencing strong interest in our product portfolio.
Based on the orders in hand, we confirm our expectation of revenue
growth for the accounting year 2021/22, in the range of 40 to 50%
compared to the 12-month period from July 2020 to June 2021. This
means our revenue is expected to come in between €2.350 K and
€2.550 K for the accounting year ending per 30 June 2022.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATE
Strategy Update
GeoJunxion’s strategy remains focused on
creating “map agnostic” data products: digital geo-localized
content, designed to be fully integrated into or overlaid on any
commercial or open-source maps, or to be utilised in developing
smart solutions for a large variety of use cases, in different
industries and market sectors.
GeoJunxion’s activities are directed towards
establishing long-term relationships with our customers, through
the creation of recurring business models rather than one-off
opportunities. Although the relationship with clients frequently
starts with a proof-of-concept or a custom one-off project, most of
the Company’s efforts go into building value-added, dynamic
content, requiring continuous and frequent updates to maintain and
increase their value over time. This means that most of our
proof-of-concept and one-off projects are a launch-pad for
establishing a service or license contract, converting the initial
activities into a recurring, more predictable and sustainable
business model.
When executing projects, GeoJunxion typically
also retains the Intellectual Property and ownership of the newly
developed datasets and solutions, which can be subsequently resold
to other customers. Thereby, leveraging the initial investment and
creating a virtuous business cycle.
Our mission remains focused on improving road
safety and contributing to a more sustainable world, reducing the
impact on the environment through intelligent solutions enabling
more environmentally conscious decisions.
Central to GeoJunxion’s strategy are:
- Cost effective sourcing,
production, ingestion, and aggregation of geodata.
- Flexible licensing models at
competitive pricing.
- Direct delivery of dynamic,
up-to-date content via APIs.
- Highly customised solutions and
content creation.
Market Developments
Despite the general situation improved
significantly, COVID 19 still impacted the mentioned quarter. Most
of the companies remained cautious in their investments delaying
some scheduled activities. While clear signs of improvement were
raising in some industry sectors, the new coming threat of the
conflict in Ukraine has brought other concerns and forced existing
and potential customers to pay even more attention in their
expenditures. At the time of publishing this report, we had no
material business exposure to the recent events in Ukraine. There
are no active customers, or deliveries due to be received from
Ukraine or Russia. GeoJunxion’s pipeline of opportunities has
limited exposure towards both countries. GeoJunxion is however
exposed to raising inflation rates, as any other Company, due to
increased energy and other raw material prices, which may impact
the salary & benefit expenses over time.
In the Automotive and Autonomous driving
sectors, GeoJunxion has issued a number of interesting proposals
during this quarter. Some have turned into closed orders.
Significant efforts have been put in expanding
the existing relations with big Global Tech Companies. We continue
to deliver unique data content to be utilized as geo-fences in a
wide variety of use cases.
Business Development
In the quarter from January to March 2022,
GeoJunxion continued to maintain its attention on the High Alert
Zones data suite. In this quarter the focus has been not only on
the Eco Alert Zones, which
continued to be developed and updated, but also on new algorithms
which enabled the development of a new set of specialized
Safety Alert Zones: the
School Safety Zones, which were launched at the
beginning of April.
In addition to this new dataset, the
Location Intelligence
Services have played a primary role in the
business development of the period. In fact, in February, we closed
contracts for additional three tailor-made Location Intelligence
Services with two large global Tech Companies. All the activities
are planned to be completed within the mid of Q4 2021/22. Two of
these contracts are Proofs of Concept, perfectly aligned with
GeoJunxion’s strategy, focused on safety on the road and
environmental sustainability. All these activities, in the near
future, may lead to very interesting contracts extensions and
additional opportunities.
At the same time, we completed the renewal of an
important annual service agreement with a public administration.
This confirms the Company’s attitude to serve and satisfy existing
customers at the largest possible extent, while generating
recurring income.Our Outdoor Venue Plan and
Location Intelligence Services continue receiving interest from
existing and prospect customers. This interest comes from local
Municipalities, engaged in their path to the digitalization of
their services, but also from private organizations with the goal
to improve their customers’ experience.
Business development during the quarter has been
primarily focused on the acquisition of a new significant
Location Intelligence contract with an important
Navigation and Infotainment Systems supplier in
the Automotive industry. The verbal agreement was
received, and contract details clarified during this extremely busy
Q3 2021/22. The formal contract has been signed in the very first
days of April. We embrace this opportunity as a long-term
partnership with clear technical and commercial objectives in
common with our client and partner and with the intent to establish
a solid and fruitful relationship for the years to come.
Product Development
Product development during the third quarter of
the fiscal year 2021/22 (January-March ‘22) was focused on the
creation of the School Safety
Zones.
School Safety Zones – the cover of the Product
Datasheet
This dynamic dataset perfectly fits GeoJunxion’s
mission to foster safety and sustainability through location-aware
content. This creates added value to B2B clients operating in the
Automotive, Transport & Logistics, Real Estate, Utilities &
Services markets, as well as public organizations.
The formal product launch was done in the first
days of April, but the development has been entirely completed
during the past quarter. Three countries have been fully deployed:
The Netherlands, Germany, and Italy. Many other countries are
scheduled in the product roadmap, starting with Belgium and
France.
School Safety Zones – over one hundred thousand
school zones in three countries
The School Safety Zones are
smart polygons/areas created around the location
of Schools and Kindergartens. The zones consider various
parameters: the infrastructures in proximity of the schools
utilized to commute to and from the school, such as zebra crossing,
dangerous intersections, walking and bicycle paths, bus stops and
metro stations. In addition, the opening and closing times and the
holidays for each type of school. This data has been stored in the
metadata to create a dynamic dataset, capable to inform when the
areas are more crowded with vulnerable pedestrians. At the end of
the quarter, we deployed over one hundred thousand school zones,
and we expect at least to double them by the end of the summer.
School Safety Zones – an example of areas
developed utilizing GeoJunxion’s proprietary algorithms
The development of the School Safety
Zones is also relevant due to the proprietary algorithms
and mathematical methods used to create the areas. These are fully
customizable, enabling us to build new types of smart polygons
around other potentially dangerous areas, such as Hospitals,
Playgrounds, Stadiums crowded event areas and many more.
ORDER INTAKE
The order intake for the
quarter January-March 2022 showed an increase of
+81% compare with the same period of the previous
year. When we consider the nine months of the current financial
year, from June 2021 till March 2022, the growth in the order
intake is about
+57%, compared
with the same period of the previous year.
REVENUE
The Q3 2021/22 revenue increased by
+76% compared to the same quarter
last year. Revenue increased, with +63% in the
period June ‘21 - March ’22. GeoJunxion tracks its revenue by
product type and by the nature of the underlying contract
(recurring versus non-recurring). The main revenue growth has been
realized in non-recurring services, but also the recurring revenue
from licenses, royalties and recurring services had an increase.
The recurring service revenue primarily includes the updating
services of our Eco Alert Zones product. The non-recurring service
revenue includes the tailor-made collection of data sets and
creation of geo-located content.
ORGANIZATION
During the past quarter, the Operations and
R&D have been strengthened by recruiting new hires. This was
necessary to serve new and existing customers, but also to develop
new IP, content, and services in a more efficient manner. We
strongly believe in automation and efficiency in delivering quality
products. For this reason, we intend to invest more in advanced
research in fields like image detection, deep-learning and, more in
general, in artificial intelligence applied to our business.
FINANCIAL POSITION
GeoJunxion progresses in turning its business
around from a digital map supplier focused on one-off large deals,
to a premium location content and location intelligence service
provider with a subscription based, recurring “data as a service”
revenue model. During the quarter GeoJunxion has continued to
invest in product development, in strengthening its R&D and
Operations teams. The results reported for Q3 and the first nine
months of the 2021/22 financial year are the evidence of this
progress. Based on our current outlook, the available cash on hand
is estimated to be sufficient to cover our operational requirements
for at least the next 12 months.
APPOINTMENT OF EXTERNAL
AUDITOR – Status update
GeoJunxion is one of 9 actively trading
companies, quoted on Euronext Amsterdam stock exchange, that have
been unable to present audited financial statements, because of
unavailability of a PIE/OOB licensed auditor. The proposed
legislation regarding the future of the Dutch Accountancy Sector
(voorstel voor de Wet toekomst accountancy sector), includes a
proposed process whereby the NBA (Nederlandse Beroepsorganisatie
van Accountants), at the request of the company, can assign a
PIE/OOB licensed auditor and determine a reasonable fee for the
auditing activities. The Management Board welcomes and supports
this initiative and hopes that this proposal obtains the necessary
support to be converted into legislation in a timely
way.
RISK MANAGEMENT
Risk management is an integral managerial task.
Our risk management and control procedures take into consideration
the size of the company and the character of the business to
identify the most significant risks which the company is exposed
to. The risks identified are discussed on a periodical basis and
mitigated or fully resolved, where possible. Such a system cannot
provide absolute certainty that objectives will be realized.
Neither can it guarantee prevention of potential cases of material
mistakes, damage, fraud, or breaches of statutory laws.
The 2020-21 annual report, as published in
October 2021, describes the primary strategic, operational, and
financial risks. The risks and uncertainties described in the
annual report are relevant and are deemed incorporated and repeated
by reference in this report. There were no cases of material
damage, fraud or breaches of law detected since issuing the Annual
Accounts.
On the Social aspect, we continue to pay
particular attention on preventive actions to limit exposure of our
people to Covid-19, encouraging and supporting smart working from
home, and establishing clear rules for those that need to be
physically present in our offices. Our people are our key assets,
and we do whatever we can to keep them safe and healthy.
BOARD OF MANAGEMENT STATEMENT
The Board of Management hereby declares that, to
the best of its knowledge, the summarized Q3 (January – March 2022)
and the nine months period (July 2021– March 2022) interim
consolidated financial statements, drawn up in accordance with IAS
34 “Interim financial reporting”, represents a faithful rendering
of the assets, liabilities, financial position, profit and cash
flow of GeoJunxion NV and its subsidiary as stated in the
consolidated financial statements, and that the Board report, as
included in this Interim Financial statements, represents a
faithful rendering of the information required in relation to item
5:25d subs 8 and 9 of the Dutch Financial Supervision Act.
GROUP STRUCTURE SIMPLIFICATION
The GeoJunxion group structure was significantly
simplified in the past quarters:
- The AND Data India Private Ltd
entity liquidation process was completed, with the approval of the
NCLT court in Mumbai in November.
- The two Dutch dormant entities: AND
Publishers B.V. and AND Holding B.V. were liquidated. The
registration of both entities at the Chamber of Commerce (KVK) were
removed, and the final tax declarations were completed.
After this simplification, the group contains
only 2 entities: GeoJunxion N.V. and its 100% subsidiary GeoJunxion
B.V.
FORWARD-LOOKING STATEMENTS / IMPORTANT
NOTICE
This document contains certain forward-looking
statements with respect to the financial position and results of
GeoJunxion. We have based these forward-looking statements on our
current expectations and projections about future events, including
assumptions regarding our present and future business strategies,
operations, and the environment in which we will operate in the
future. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements, and you
should not place undue reliance on them.
Many of these risks and uncertainties relate to
factors that are beyond the company’s ability to control or
estimate precisely, such as timing of placement of orders of our
customers, exchange-rate and interest-rate fluctuations, labor and
other cost inflation, changes in tax rates, regulatory and legal
changes, the rate of technological change, the competitive
landscape, political developments in countries in which the company
operates and the risk of a downturn in the market.
The forward-looking statements contained herein
speak only as of the date they are made. We do not assume any
obligation to update any public information or forward-looking
statement in this document to reflect events or circumstances after
the date of this document, except as may be required by applicable
laws.
Capelle aan den IJssel, 28 April 2022,
Ivo Vleeschouwers – CEO / CFO
Francesco Altamura - CBO
This is a public announcement by GeoJunxion N.V., pursuant to
article 17, paragraph 1 of the European Market Abuse Regulation
(596/2014). This public announcement does not constitute an offer,
or solicitation of an offer, to buy or offer securities in
GeoJunxion N.V.
- Press Release - Financial Update Q3 2021-22_Geojunxion NV
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