GeoJunxion NV (ticker: GOJXN.AS) Formerly called AND International
Publishers NV (AND.AS) Financial & Business update Q1 (July –
September) 2021-22
Capelle aan den IJssel, The Netherlands, 11
November 2021, GeoJunxion reports 76% revenue growth, with strong
reduction in Net Loss and Cash outflow for the period July –
September 2021 versus the same period in 2020.
Please note that the current financial year will
cover a 12-month period from 1 July 2021 to 30 June 2022. The
previous financial year covered 18 months from 1 January 2020 to 30
June 2021 and was an eventful period, during which the Company went
through a significant transformation, which, in part, is still in
progress. Consequently, this is the first Financial and Business
update of the new financial year 2021-22, covering the first 3
months from 1 July to 30 September 2021.
Looking back at this first quarter, GeoJunxion’s
business continued to show resilience and good performance, in
spite of the fact that this quarter is traditionally slow due to
the summer holiday season, during which most of the companies
reduce their activities. Revenue grew by 76% compared to the same
quarter in 2020 and order intake showed growth of about 53%
compared to the same period last year.
We are continuously encouraged by the market
interest regarding our new premium location-aware products, in
particular the Eco and Safety Alert Zones, and Location
Intelligence Services, which have attracted the attention of public
and private companies within various industry sectors and resulted
in the increased strength of our pipeline. It is also worth noting
that order intake has continued its positive trend across all our
product lines and services, in particular for recurring multi-year
business opportunities.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATE
Strategy UpdateGeoJunxions’ strategy
focuses on creating “map agnostic” products: digital geo-located
content designed to be fully integrated into any commercial and
open-source maps, or to be utilised in developing smart solutions
for a large variety of use cases across different industries and
market sectors.
GeoJunxion 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
our efforts go into building value-added, dynamic content requiring
continuous and frequent updates to maintain and increase their
value. This means that most of our proof-of-concept and one-off
projects are useful for establishing a service or license contract,
converting the initial activities into a recurring, more
predictable and sustainable business model.
In most cases, GeoJunxion 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, contributing to a more sustainable world and reducing the
impact on the environment through intelligent solutions which
enable more environmentally conscious decisions.
Central to GeoJunxion’s strategy are:
- Cost efficient 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 DevelopmentsWhile COVID
restrictions have been relaxed during the mentioned quarter,
measures still influenced the general willingness to spend,
therefore companies remained cautious in their investments.
However, signs of improvement are confirmed in many industry
sectors, from large IT companies to public and private
organizations operating in the business of Smart Cities solutions,
green economy, Transports and Logistics, Automotive and Autonomous
driving sectors. The new GeoJunxion strategy which focuses on map
agnostic solutions fostering safety on the road and environmental
sustainability perfectly aligns with recent market
developments.
Business Development In the quarter from
July to September 2021, we maintained our focus on the High Alert
Zones data suite, with re-enforced attention on Eco and Safety
Alert Zones. The strongest traction from the market remained on the
Eco Alert Zones (EAZ), where we expanded our unique value
proposition of fully attributed, global, and authoritative coverage
of Low Emission Zones, Congestion areas and Limited Traffic zones.
Eco Alert Zones apply to passenger vehicles, light commercial
vehicles up to 3,5T and heavy vehicles above 3,5T. EAZ proved to be
the most requested data suite, both by existing customers and
prospects, leading to a strong pipeline of opportunities.
Safety Alert Zones (SAZ) also started attracting
active customers and new prospects. The first release of the
Accident-prone Areas focused on the Netherlands and Germany, with
tunnels and bridges, classified as potentially dangerous spots for
drivers under certain weather conditions. During Q2, we will launch
a new business campaign with the SAZ product, focusing on the
Insurance market, Transports and Logistics, Automotive and Smart
Cities management.
Our Outdoor Venue Plan and Location Intelligence
Services are also generating positive traction. We see increased
interest from municipalities, for the development of information
systems and bespoke suites of data related to Smart Cities
applications and services. Public and private companies are showing
interest in alternative mobility plans, real estate and, finally,
also travel, leisure and tourism, despite the still limited
capability of investment due to Covid restrictions.
Outdoor Venue Plan - use case for Automotive,
Municipalities and Smart City applications
Our series of webinars generated good numbers of
registrants and attendees and have proven to attract the interest
of new prospects and re-enforce the relationship with current
clients. Recordings of all webinars are available on our website in
the Resources section, at “Events and Webinars”.
Product DevelopmentProduct development
during the first quarter (July-September ‘21) was focused on the
release of the first set of data of our Safety Alert Zones and
related APIs to enable usage on web and mobile platforms as well as
on geographic information systems for spatial data analysis.
The first release of the Safety Alert Areas
included:
- Accident Prone-Areas in the Netherlands and Germany
- Tunnels and Bridges as potentially dangerous areas, based on
time and weather conditions in the Netherlands, Germany and
Italy
Safety Alert Zones - use case of Accident-Prone
(AP) Area for Automotive, Insurance and Transport and Logistics
We actively worked (and will continue doing so)
to improve our Eco Alert Zones, with specific attention to Heavy
Vehicles over 3.5 tons. This new authoritative and dynamic dataset
perfectly fits the GeoJunxion’s mission to foster safety and
sustainability through location-aware content, bringing increased
value to the existing Environmental Zones data suite.
Per 30 September 2021, GeoJunxion’s Eco Alert
Zones included about 2,000 areas, divided into three major
categories:
- Low Emission and Congestion Zones for passenger vehicles and
light commercial vehicles up to 3.5T
- Low Emission and Congestion Zones for Heavy Vehicles over
3.5T
- Traffic Limited Zones (ZTL) for all vehicles
These areas are monitored on a daily basis and,
in any case, updated as soon as any modification in the geometries
or attributes is announced by the official governmental authorities
responsible of their definition, implementation and
enforcement.
Eco Alert Zones – worldwide coverage at the end
of September 2021 (about 2.000 areas in 27 countries)
We continued working on a new premium product
with worldwide coverage referred to as Built-Up Areas (BUA), i.e.,
boundaries enclosing densely urbanized areas, characterized by a
higher population density than surrounding areas. A BUA
provides the geographic shape of cities, towns, and larger
villages.
We also started working on a dedicated Outdoor
Venue Plan project in the Travel & Tourism industry, with the
intention to deliver the final solution in the next quarter. We
believe this project can be the first to generate new revenue
opportunities when this industry regains speed during the course of
2022.
Order Intake / Bookings developmentsOrder
intake for the period July-September 2021 confirmed its positive
trend, with an increase of about 53% compared to the same period in
2020. Orders for premium location data and Location Intelligence
Services booked in the past quarters of the previous financial year
continue to materialize into revenue thanks to diligent internal
delivery procedures and full commitment of the entire team towards
product excellence and customer satisfaction.
FINANCIAL SUMMARY Q1 JULY - SEPTEMBER 2021
VERSUS JUL - SEP 2020
- Revenue for Q1 2021 grew strongly by 76% compared to the same
period in 2020.
- Increased Operational expenses reflects investment in headcount
for product and service delivery.
- Operating result improved €210K, or 63% to a loss of €125K,
compared to a loss of €335K in Q1 2020.
- Net result after tax improved by €198K, or 56% to a net loss of
€155K versus €353K in Q1 2020.
- Net cash-flow from operating and investing activities equals an
outflow of €62K, a significant improvement versus a cash outflow of
€350K in Q1 2020.
- Consolidated 30 September 2021 cash position equals €760K.
OUTLOOK FOR THE ACCOUNTING YEAR 2021-2022
Covid-19 and the related measures to contain its spread, continue
to hamper our business development and growth. This is the case for
our products directed towards the travel, leisure, and events
industry. Despite this headwind, we continue to experience strong
market interest in our new product portfolio, resulting in solid
Q1, July-September 2021 revenue growth, and a growing pipeline of
opportunities with major players in our industry. Based on the
orders in hand, and the strength of the pipeline of opportunities,
we expect 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.
ORGANIZATIONDuring the period July to
September 2021, there were no significant organizational changes to
be noted.
FINANCIAL POSITIONGeoJunxion 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 it
R&D and Operations teams. The December 2020 private
placement has provided the funding needed to enable GeoJunxion to
grow towards a cash generating and profitable organization.
The results reported for Q1 2021-’22 evidence this progress. The
cash available on hand is estimated to be sufficient to cover our
operational requirements for at least the next 12 months.
REPLACEMENT OF EXTERNAL AUDITORIt is
encouraging to see that the lack of availability of PIE/OOB
auditors is receiving attention at the legislative level.
GeoJunxion is not the only affected company, with 12 companies
quoted on Euronext Amsterdam stock exchange unable to present
audited financial statements. Recently, the Dutch Government
(Minister Hoekstra – Department of Finance), has taken the
initiative to propose a mandatory appointment of auditors to
resolve this issue. The Management Board welcomes and supports this
initiative and is hopeful that during the next accounting year
2021-2022, the auditor issue will be resolved, and we will be able
to present audited financial statements.
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 describes the
principal 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 Q1 (July – September)
2021 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 subsidiaries as
stated in the consolidated financial report, and that the Board
report as included in this Q1 (July-September) 2021 Interim
Financial 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
The voluntary liquidation of AND Data India Pvt,
LTD, continues to progress well: The liquidator has paid all debts,
obtained required certificates, closed the bank accounts, and filed
the liquidation request with the NCLT court in Mumbai. Upon
the NCLT’s approval, the liquidation is completed. The
timeline for its verdict is unclear, as there is a backlog in cases
to be processed resulting from Covid closures.
FORWARD-LOOKING STATEMENTS / IMPORTANT
NOTICEThis 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, 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, 11 November 2021,Ivo
Vleeschouwers – CEO / CFO GeoJunxion BV
- Press Release - Financial Update Q1 2021-22_Geojunxion
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