AND International Publishers NV (ticker: AND.AS) publishes its half
year results and trading update
Capelle aan den IJssel, the Netherlands, 12 August 2020:
AND International Publishers NV (ticker: AND.AS)
is pleased to share today its half year
results and trading update
TRADING UPDATE AND HALF YEAR 2020
RESULTS
AND grows topline by 22% and reduces net
loss by 19% in Covid-19 impacted economic
environment.Covid-19 and the related measures taken to
prevent the spread of the Corona virus have proved to be a
significant challenge for the global economy. The AND team and our
underlying business have shown resilience: revenue has increased by
22% compared to the same period in 2019. 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 felt most in the data sales segment,
where it was difficult to connect with key decision makers and win
new customers.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATEThe year began with a good sales pipeline, but the
anti-pandemic measures initiated by the government in March
generally had a significant impact on company decision-making
processes. However, as our IT systems and operations are well set
up for remote working, we could react quickly to the health risks
and maintain operational continuity. We also leveraged our
knowledge of distributed working to ensure the tasks carried out
for us by our Indian production partner were not negatively
impacted by lockdown measures.
Our strategy to limit investment in the
automotive industry (such as HD Maps) was reinforced by the intense
retrenchment this industry has undergone since the start of the
pandemic. As announced at our AGM and consistent with our new focus
on providing subscription-based location-aware content and
services, we are now concentrating our activities on
Location-Aware Services, Data Sales and Premium Content creation
and sales. To catch up with a slow Q1, we pushed hard on our
enterprise activities, direct marketing and new product launches.
Our marketing automation reached out to over 60,000 contacts in key
markets which are now being qualified through several campaigns.
These targeted activities produced several good, short-term
opportunities in service sales, generating revenue and creating the
basis for some new premium products to be launched in August
2020.
We are on track with product releases such as
GeoCoder, MapTiler, GeoBoundaries - new API suites which will help
us attract the interest of developers and tech companies. We
continue to improve our operations by overcoming legacy processes.
Due to the pandemic and well-established competition, our direct
API sales have not materialized in the reporting period.
The TalkingMaps® project, which generates
monthly updated authoritative speed limits in cooperation with
several provinces in the Netherlands, is now entering its next
phase when we will add lane marking recognition features.
We are starting to see traction from our premium
products built around safety & sustainability: in the first
half of this year, a project with a large tech company led to the
development of our new Eco Alert Zones.
Looking forward, we are continuing to focus on
the above mentioned three pillars - a strategy which enables us to
sustain a strong momentum with our existing client base whilst
creating new opportunities in other verticals and markets.
FINANCIAL SUMMARY HALF YEAR 2020
RESULTS
- Revenues over the first half year are up by 22% to €704 K;
- Operating result improved by 33% to a loss of €656 K, compared
to a loss of €981 K in 1H 2019;
- Net result after tax improved by 19% to a net-loss of €598
K;
- Net cash-flow from operating and investing activities equals an
outflow of €640 K Euro, an improvement of €88 K versus last
year;
- Consolidated cash-position equals €1,031 K (June 30, 2019:
€1,466 K).
OUTLOOK FOR THE FULL YEAR 2020
For the full year 2020, AND expects to generate a revenue in the
range of €1,550 K to €1,900 K, which represents a year over year
growth in the range of 46% to 79% compared to 2019 revenue. This is
expected to result in an operating loss in the range of €1,400 K to
€1,100 K, a net loss in the range of €1,100 K to €900 K and a cash
outflow in the range of €1,250 K to €950 K.
KEY FIGURES
FINANCIAL POSITIONAND is
turning its business around from being an automotive map supplier
focused on one off large deals, to a location-aware content and
service provider with a subscription based “data as a service
model”. This transition requires investment in product development
and in sales and marketing. The convertible loan closed in February
2020 has provided the funding to kickstart and implement this
process. However, additional funding will be required in the second
half of 2020 to enable AND to grow with its new business model into
a cash generating and profitable organization.
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.
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.
While we have taken mitigating actions and the gradual lifting of
lockdown measures is showing 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 half-year
report as of 30 June 2020, 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 half-yearly 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 SIMPLIFICATIONIn order to simplify the structure
of the group, speed up the monthly closing process and reduce
costs, the decision has been taken to dissolve dormant
subsidiaries. Dissolution requests have been filed with authorities
for the AND International Publishers PLC (UK) and AND North America
LLC (USA) in July. The closing of AND Data India Pvt, LTD, was
delayed due to Covid-19 related lockdowns in India, but is on track
to complete in Q4 2020.
For more information contact:
Thierry Jaccoud - Chief Executive Officer
Ivo Vleeschouwers - Chief Finance Officer
Tel +31 (0)10 885 1200
Ends
About AND AND 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 location-aware products and services.
- 1H 2020 reporting_AND Intl Publishers NV_Final_20200811