AND International Publishers NV (ticker: AND.AS) Releases September
YTD 2020 consolidated results and trading update
Capelle aan den IJssel, the Netherlands, 29 October 2020
– AND grows September 2020 YTD topline by 33% and reduces net loss
by 23% YOY, in difficult Covid-19 impacted economic
environment.
Covid-19 and the related measures taken both in
the spring and during September and October to prevent the spread
of the virus have proven to be a significant challenge for the
global economy. The AND team and our underlying business have
however shown very strong resilience: revenue has increased by 33%
during the first 9 months of 2020 compared to the same period last
year . This is mainly due to our success in winning and delivering
new service projects, and moderately growing our existing recurring
business. The direct impact of the lockdown was mostly felt within
the data sales segment, where it was and to some extend still is
difficult to connect with key decision makers and win new
customers.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATEIn the third quarter 2020, we focused on improving our
processes, developed new products, continued to deliver outstanding
service quality and extended our sales team in the Netherlands,
Germany and the USA. Thanks to improved internal processes, we
pulled the mid-year reporting forward by one month and improved our
visibility for the full year. These improvements enabled us to give
guidance on revenue, profit & loss and enabled us to provide
quarterly updates to our stakeholders.
During the summer months, our research and
development team has focused on developing new products to enhance
our portfolio within premium location-aware content and expand our
service offering in more location content APIs.
On September 2nd, we launched our Eco Alert
Zones. This is a whole new category of products for AND. We offer
highly curated and dynamic data on worldwide congestion and low
emission zones for passenger cars. This daily updated dataset is
offered as a annual subscription and will contribute to our goal of
increasing recurring revenue. The product was already been embraced
by a large global tech company which has access to a large customer
base of of mobile users.
On September 16th, we launched our new turnkey
solution for outdoor venue owners Ii.e our Outdoor Venue Plan. This
service makes use of our 25 years of experience in creating digital
maps and location enabled smart web services such as the MapTiler.
Some of our partners are already using this service and helping us
to finetune its functionality further for campsites, holiday parks
or industrial areas across the world.
In Q3, demand for our data research and
aggregation services showed a strong increase. Therefore we needed
to add resources to the team in the Netherlands. In close
cooperation with our production partner in India, we delivered
world class and uniquely qualified content on congestion Zones,
ferry lines and trails in Europe. These projects will continue to
generate revenue in Q4.
In Q3, we also attracted new experienced talent
to our Sales team in the Netherlands. This extension enabled us to
deepen our market knowledge and and increase our speed to market
which resulted in a stronger pipeline as demonstrated by . the
addition of new customers with multi-year subscription contracts
for our map tiler service.
On October 15th, we launched the rebranding of
AND to GeoJunxion. This new brand underlines our new strategic
direction and will help us to further articulate our new product
development as well as support our e-commerce platform for
developers.
As our growth is mainly driven by B2B business
development, the restrictions in visiting prospects and customers,
hamper our ability to win new customers and increase market
share.
FINANCIAL SUMMARY SEPTEMBER 2020 YEAR TO DATE
RESULTS
- Revenue September 2020 YTD is up by 33% to €1.087 K;
- Operating result improved by 38% to a loss of €991 K, compared
to a loss of €1.592 K in Sep’19 YTD;
- Net result after tax improved by 23% to a net-loss of €951 K
versus €1.212 K in Sep’19 YTD;
- Net cash-flow from operating and investing activities equals an
outflow of €991 K Euro, an improvement of €221 K versus the same
period last year;
- Consolidated cash-position equals €682 K (Sep 30, 2019: €982
K).
KEY FIGURES
OUTLOOK FOR THE FULL YEAR 2020 The
increasing number of Covid-19 infections in many countries in
Europe is again causing uncertainty resulting in an economic
slowdown . The partial lockdown in many of our target markets such
as the Netherlands, Germany and the USA is unfavorably impacting
our high end outlook. In spite of this adverse impact, AND is
pleased to confirm the lower end of the revenue guidance provided
in August. For the full year 2020, we expect to generate a revenue
within the range of €1,550 K to €1,700 K, which represents a YOY
growth in the range of 46% to 60% compared to 2019 . This is
expected to result in an operating loss in the range of €1,450 K to
€1,300 K, a net loss in the range of €1,200 K to €1,100 K and a
cash outflow in the range of €1,400K to €1,300 K. The high end of
the revenue range has reduced as a result of slower decision making
processes particularly within our data sales prospects. Our revenue
mix shows an increase in the service revenue, which requires
additional resources to meet this demand. Service projects also
have a longer cycle to convert into cash, which explains the higher
cash outflow guidance.
FINANCIAL POSITIONAND is making
significant progress in turning its business around from an
automotive map supplier focused on one off large deals to a
location-aware content service provider. This transition requires
investment in product development and sales and marketing. The
convertible loan closed in February 2020 has provided the required
funding to develop an interesting set of new products. Additional
funding is required to enable AND to grow with its new business
model into a cash generating and profitable organization. AND
expects to complete the funding in Q4 2020.
REPLACEMENT OF EXTERNAL AUDITORWe
continue to explore the options to replace our previous
OOB-licensed auditor, Grant Thornton. However, to date no available
alternative auditor has yet been identified. To allow more time in
resolving this issue, AND has decided to call an Extraordinary
General Shareholders Meeting in December. Part of the agenda will
be a request to shareholders to approve the extension of the
accounting year until 30 June 2021. For the full agenda, please
refer to a separate press release. issued on 29 October 2020
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 in order to identify the most significant
risks which the company is exposed to. The risks identified are
discussed on a periodical basis and mitigated 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 2019 annual report describes the principal
strategic, operational and financial risks. The risks and
uncertainties described in the annual report are still 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 in the first half year. However, the Covid-19 outbreak and
the associated pandemic controls have had a disruptive effect on
the economy and an adverse effect on our business. Most noticeably
in our data sales business and associated revenues. In spite of the
fact that we have taken mitigating actions and we can see signs of
economic recovery, there is no guarantee that the pandemic and its
associated control measures will not have a further negative impact
on our business, financial position and results.
BOARD OF MANAGEMENT STATEMENTThe Board of
Management hereby declares that, to the best of its knowledge, the
summarized consolidated September 2020 YTD 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 AND International
Publishers NV and its subsidiaries as stated in the consolidated
financial report, and that the Board report as included in this
September 2020 YTD report 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
During Q3 2020 the dissolution of AND
International Publishers PLC (UK) and AND North America LLC (USA)
was completed. The voluntary liquidation of AND Data India Pvt,
LTD, has made significant progress: the legal steps to appoint a
liquidator have been completed; the GST (Indian VAT) receivable has
been refunded; the liquidator is progressing through the step plan.
As a result of ongoing Covid-19 related lockdowns and
unavailability of Indian government institutions, it remains
difficult to predict the exact completion date. We expect the
repatriation of a significant portion of the funds during Q4 2020
and the completion of the voluntary liquidation in subsequent
months.
Ends
About ANDAND and its brand GeoJunxion is an
innovative location-aware content and service provider. Our focus
is to create and deliver market leading, relevant, innovative and
tailored content which fosters a safer and more sustainable world.
Using smart technology, we constantly enrich and update our global
database and offer an end-to-end portfolio of subscription based
location-aware products and services.
For more information, please contact the Management
Board
Thierry Jaccoud – Chief Executive Officer Ivo Vleeschouwers –
Chief Finance Officer
- 2020-10-29 Sep YTD 2020 reporting_AND Intl Publishers NV