Report on the first six months of 2014
AND realizes a higher revenue and profit in first half of 2014 and is on schedule with the creation of its navigation maps of United States and Canada
- Revenue for first half of 2014 € 3.3 million compared to € 3.2 million in first half of 2013
- Profit first half of 2014 € 2.1 million compared to € 1.8 million in first half of 2013
- Profit per share first half of 2014 € 0.56 compared to € 0.49 per share in first half of 2013
- Dividend paid of € 0.10 per share in May 2014
Rotterdam, 19 August 2014 – AND International Publishers NV realized a higher revenue and profit compared to the first half of 2013. AND realized a revenue of € 3.3 million and a profit of € 2.1 million in the first half of 2014. Earnings per share amounted to € 0.56. Based on the results in the first half of 2014 AND expects revenue and profit in 2014 will be at the same level of 2013 or higher.
AND CEO Hugo van der Linde: “We are excited with the results of the first half of 2014, showing a healthy revenue and profitability. In addition we invest heavily in doubling the coverage of our navigation maps, which progresses as scheduled.”
Course of events for the first half of 2014
Early 2014 AND signed the first contracts within the track and trace market. AND has developed the AND Trip Registration Platform which is based on the AND LBS Platform. This track and trace solutions module consists of a mapping API and accurate (reverse) geocoding based on the AND proprietary maps.
At the Mobile World Congress in February AND brought its mapping and location services to Ubuntu with an easy to use mobile application. AND developed a map viewer with the proprietary AND navigation maps of Europe to start showing the capabilities of AND for Ubuntu on phones.
End of April AND signed an important agreement with ALK Technologies Inc. from Princeton to create a high quality navigation map of the United States and Canada. This agreement will contribute substantially to our revenue and results in 2014 and 2015.
This established navigation company has contributed its own navigation map of the United States and Canada, which is already extensively used within various navigation applications, systems and logistic solutions. AND is entitled to deliver the map to third parties.
Together with its current Western European navigation map AND will double its coverage of navigation maps. With this increase in coverage AND expects to further attract global customers.
The upgrade and enrichments program is planned to run until mid-2015, however parts of the improved maps will become commercially available before the fourth quarter in 2014. The upgrade program is on schedule.
Based on the agreement for the creation of high quality navigation maps of the United States and Canada, and the positive result for 2013, the Executive Board and Supervisory Board of AND International Publishers NV approved the payment of € 372,714 from its reserves. This payment corresponds to € 0.10 per share.
Revenue increased from € 3.2 million to € 3.3 million. Revenue from the contract for the creation of the navigation map of the United States and Canada contributed an important part to the revenue in the first half of 2014.
Total operating expenses increased from € 1.4 million to € 1.5 million. Internal costs spent to the development of the map of the United States and Canada have been capitalized and amounted to € 0.3 million in the first half of 2014. Combined with higher costs for amortization net operating expenses amounted to € 1.1 million compared to € 1.4 million in 2013.
In the first half of 2014 AND invested in the map of the United States and Canada. The total investment amounts to € 3.7 million. Therefore the intangible fixed assets have increased to € 9.7 million.
Net cash flow amounted € 1.5 million negative resulting in a total balance of cash and cash equivalents of € 4.0 million.
Shareholders’ equity of € 12.5 million amounts 76% of total assets. As in previous years AND has no bank debts.
AND is the only independent company in the global map market for digital maps for location based services. This offers opportunities and AND will continue to improve and extend its existing maps more effectively. In addition AND will increase its added value by offering its maps and data as customized services.
Outlook for 2014
The economic conditions, market developments and business models in the market for digital maps are still highly uncertain. The results will depend among others on the strength of economic recovery, the developments in the market for navigation and location-based services. Also AND is still highly dependent on large customers and orders. Based on the results in the first half of 2014 AND expects revenue and profit in 2014 will be at least at the same level of 2013 or higher.
For a detailed description of the risk factors that apply to AND International Publishers NV and its subsidiaries, you are referred to page 12 and 13 of the annual report for 2013.
Declaration from the Board of Directors
The Board of Directors hereby declares that, to the best of their knowledge:
- the consolidated, interim financial report, which have been prepared on the basis of IAS 34, Interim financial reporting, give a true and fair view of the assets, liabilities, financial position and the result of AND International Publishers NV and the companies included in the consolidation as a whole; and
- the half year report from the Board of Directors includes a fair review of the information required pursuant to section 5:25d, subsection 8 and 9 of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht)