Sharp increase in profit and sales in 2007 expected
AND annual profit 2006 EUR 688,000 (2005: EUR 259,000)
Rotterdam, 23 April 2007 - AND International Publishers N.V. concluded the financial year 2006 with a positive result. The after-tax profit nearly trebled to EUR 688,000 on a slight increase in turnover. Earnings per share rose from EUR 0.09 to EUR 0.23 ('diluted' from 0.09 to 0.18). The positive result and a private issue saw shareholders' equity rise to over 75% of the balance sheet total.
The first concrete results of the ambitious investment programme launched at the end of 2005 became visible in 2006. Digital maps have for example being developed for Turkey, Bulgaria, Slovenia and Croatia. In addition AND now also has navigable data available for the Benelux.
Partly in view of the cost-efficient method of digitisation and the comparable quality (as established by an independent organisation) of the maps, AND should therefore be able to withstand the competition from existing players successfully.
The available cash flow was still negative over the past year and will remain so in 2007, even though trading conditions are expected to remain favourable in 2007. In this light it is important to note that the warrants issued in 2004 (and expiring this year) will in all probability be fully exercised in 2007. This will generate income of up to EUR 690,960. Only if the company decides to step up the development programme, additional financing will be required.
On the basis of the contracts concluded to date and the evident interest in the market for our new products, and barring unforeseen circumstances, we are expecting a sharp increase in profit and sales in 2007. The available cash flow is not expected to become positive until 2008 at the earliest.
The financial details in this press release have been taken from the 2006 financial statements, which have been given an unqualified report by DRV Accountants and Tax Advisers.
