AND's 2015 revenue and
profits boosted by investments in digital mapping
AND already locks in marked
increase of revenue in 2016
in millions of euros (except for figures
per share) |
2015 |
2014 |
Revenue |
6.0 |
4.8 |
Operating profit |
5.4 |
2.7 |
Net profit |
5.1 |
2.6 |
Net profit excluding reversal of
impairment loss |
3.2 |
2.6 |
Cash balance |
4.5 |
3.8 |
Proposed dividend per
share |
0.15 |
- |
Earnings per share |
1.36 |
0.69 |
Capelle aan
den IJssel, the Netherlands - 17 March 2016 - The revenues of AND
International Publishers NV increased by 24% in 2015, to €6.0
million. Net profit, excluding the reversal of part of the
impairment loss which was charged to income in 2011, rose to €3.2
million, compared with €2.6 million in the preceding year. Earnings
per share, including the reversal of the impairment loss, came in
at €1.36 compared with €0.69 in 2014. AND is profiting from ongoing
investments in its digital mapping, which have resulted in several
large orders. As a result of current contracts AND has already
locked in revenue which substantiates a marked growth rate of 2016
revenues compared with 2015. AND proposes shareholders to pay a
dividend of €0.15 per share with the intention to pay dividend on a
regular basis in the years ahead.
AND Chief
Executive Officer Hugo van der Linde: "Over the
past five years, AND has made targeted investments in the quality
and range of its digital maps, resulting in a high-quality product
and structural coverage of important regions like North America and
Europe. This strategy proved its worth, with major players in the
sector awarding us contracts that led to sales growth in 2015, and
we shall continue to grow in 2016. AND's robust financial position
means that the company can fund the investments from its own
resources while still intending to pay dividend to its shareholders
on a regular basis. AND as an independent player is spotted by
international companies because, as a flexible organisation, we are
able to respond to the innovative requirements and expectations
which customers have. Also the coming years we shall continue to
invest in our digital mapping so as to expand our coverage and
improve quality. To facilitate growth in the important American
market, we shall be opening an office in the United States this
year. This marks one more step in the growth of AND while
continuing to pursue our prudent financial
policy."
Course of
events 2015
In 2015, AND made further investments in the
development of a high-quality premium navigation map of North
America. The upgrade and enrichment programme for the US map was
completed in the third quarter of 2015, more than doubling the
coverage of AND's navigation maps. The first sample data was
offered to interested parties and, in October, AND secured its
initial contract to supply this map, to one of the leading
providers of worldwide planning solutions. This first customer
licensed AND's US map after extensive testing.
Development
of the high-quality premium map of Canada had reached an advanced
stage by the end of 2015 and the work was completed in January
2016.
In addition
to developing the high-quality premium navigation map of North
America, AND executed a number of customized services and concluded
various licensing agreements. In conjunction with existing customer
Barloworld Supply Chain Software, for instance, which has been part
of LLamasoft since November 2015, AND supplied a map in the
Barloworld format so that it can be used with Barloworld software
without any further processing, saving Barloworld time and
development costs. Barloworld software allows the most efficient
routes to be calculated, cutting costs as well as CO2
emissions.
On another
project, AND worked with Ordina and the Dutch Inspectorate of
Education to support the search function on the inspectorate's
website by providing accurate location details of schools. AND also
completed a successful pilot for the digital mapping of unpaved
roads on behalf of a supplier of advanced planning optimisation
solutions. In addition, AND undertook custom contracts which
involved accepting total confidentiality with respect to the
client, the work involved and the financials of the project and is
therefore unable to disclose any further details.
In the third
quarter AND has entered into a material agreement to license
certain mapping data to a U.S.-based company. The signed contract
contributes substantially to the revenue in 2015.
Early in
December, AND announced that it was engaged in exploratory talks
with multiple companies regarding
a possible offer for all shares.
These discussions were at an early stage and had been initiated as
a result of interest emanating from the marketplace. Given
the continuing and recent positive developments, AND has meanwhile
informed these companies that it is suspending these talks until
further notice.
Financial
position
Revenue was up from €4.8 million to €6.0
million. The contract signed in Q3 with an American player to use
AND digital maps contributed substantially to revenue in
2015.
Total
operating expenses in 2015 were up by €1.1 million, at €4.5 million
overall. Personnel expenses rose by €0.4 million compared with
2014, to €2.4 million. This increase stemmed from making greater
use of contract staff to work on a custom contract for a customer.
The capacity of in-house staff was also increased in connection
with the expansion investments for the navigation map of North
America.
Depreciation
and amortisation of property, plant and equipment and intangible
assets rose by €0.2 million to €0.7 million. The increase is caused
by the investments in the North American navigation map in 2014 and
2015.
The costs of
share-based compensation rose by €0.5 million to €0.6 million. The
increase is caused by the rise in the share price from €3.00 at
year-end 2014 to €8.35 at the end of 2015.
The costs
involved in the further development of the map of North America
have been capitalised and, for the whole of 2015, amounted to a
total of €1.4 million (2014: €1.3 million).
An
impairment test was performed on the carrying amount of the AND
database at balance sheet date. The outcome of this test resulted
in a reversal, totalling €2.5 million, of the impairment loss
recognised in 2011, based on the positive growth in revenue and
profits of recent years and the signing of an important licence
agreement in February 2016, which means that 2016 revenue will be a
minimum of €6.5 million. The earning capacity and value of the
database is therefore far greater than had been
recognised.
Net
operating expenses were down from €2.1 million in 2014 to €0.6
million in 2015. This decline is largely explained by the reversal
of the impairment loss of €2.5 million originally recognised in
2011.
The realised
net profit amounts to €5.1 million, compared with a profit of €2.6
million in 2014. Of this, an amount of €1.9 million results from
the €2.5 million reversal of the impairment loss recognised in
2011.
In 2015,
further investments were made in the construction of the navigation
map of North America. The total investment amounted to €1.5
million. This investment, together with the €2.5 million reversal
of the impairment loss recognised in 2011, caused the carrying
amount of the intangible assets to rise to €13.8 million as at
year-end 2015.
The net cash
flow for 2015 amounted to €0.7 million positive, increasing the
balance of cash and cash equivalents to €4.5 million as at year-end
2015.
As a result
of the realised results and the investments total assets in 2015
increased by €4.2 million to €20.2 million. As in 2014, AND had no
bank borrowings as at year-end 2015. Shareholders' equity as at
year-end 2015 amounted to approximately 89% of the balance sheet
total.
Dividend
Given the good results for 2015 and the
excellent start to 2016, AND will be putting a resolution before
the General Meeting of Shareholders to be held on 12 May 2016
proposing to pay a dividend of €0.15 per share in respect of the
2015 financial year, or 17% of the net profit excluding reversal of
the impairment loss. AND also has the intention to pay an annual
dividend on a regular basis whenever possible and having due regard
to the existing dividend policy. Since the company wishes in
principle to finance its growth as far as possible from its own
resources, calculation of the dividend takes account of various
factors such as growth potential, level of investment, cash
requirements, the capital position and the interests of
shareholders in the medium term.
Market
developments
The huge growth in smartphones with GPS,
tablets and wearables with the ability to fix their location has
created a mass-market for location-based apps that are available
through the various app stores. Apart from navigation apps, many
other apps also make use of location services, such as weather,
chat, photo and fitness apps. Many of these apps use the standard
APIs (Application Programming Interfaces) forming part of the SDKs
(Software Development Kits) of the mobile operating systems. The
existence of location services that are available free of charge
has resulted in businesses becoming vastly more aware of the
importance of location to their business processes. The map
underlying location services for business processes is being
customized much more frequent in order for those business processes
to be optimised. There is also a growing need for cloud-based
location services. With its LBS (Location Based Services) platform,
AND provides the ideal answer to this need. AND also continues to
see a growing demand for customized products and an increasing
readiness on the part of customers to pay for services rather than
map licences only. In the automotive market, AND envisages a
rapidly accelerating demand for location services in connection
with autonomous car and the connected car. The developments
surrounding autonomous cars only go to strengthen the strategic
importance of worldwide maps in this sector. AND is exploring the
potential for occupying a successful position in the automotive
market. Although the need for digital worldwide mapping and
location services continues to grow, the number of suppliers able
to provide global coverage is very limited. AND has already taken
an important step in response to that need by being able to offer
detailed mapping of North America in addition to its coverage of
Western Europe. AND shall continue to invest in our digital mapping
in the years ahead in order to expand the coverage even further and
improve quality.
Strategy
AND is the only independent player in the global map market
offering digital mapping for location-based services. This creates
good opportunities and AND will accordingly be improving and
expanding its existing maps even more effectively. AND will also be
focusing on increasing the added value which it offers by providing
its maps and data as customised services.
Outlook for
2016
2015 was a good year for AND and the company is positive about the
new opportunities presented by today's rapidly changing
technological possibilities and market developments. At the end of
February 2016, AND signed an important licence agreement with one
of Europe's largest Internet companies to use its digital mapping
and, as a consequence of this, the company has guaranteed revenue
of at least €6.5 million in 2016 at the time of publication of the
present financial statements, representing marked growth in revenue
compared with 2015.
Risks
For details of the various risks affecting
AND International Publishers NV and its subsidiaries, reference is
made to the company's 2015 annual report.
The General
Meeting of Shareholders will be held in Rotterdam, the Netherlands
on 12 May 2016. Detailed analysis of the results can be found in
the 2015 annual report. The annual report will be published in
Dutch on the website www.and.com during the course of the day on 17 March.
Rotterdam,
17 March 2016
CEO
H.F. van der Linde
2016 |
Financial calendar |
17 March |
Publication of 2015
results |
12 May |
Trading update |
12 May |
General Meeting of
Shareholders |
16 May |
Ex-dividend date |
17 May |
Record date for dividend
entitlement |
19 May |
Dividend made payable |
18 August |
Publication of half-year
results |
15 November |
Trading update |
Editorial note, not for publication
For further information, please contact Hugo van der Linde, Tel.
0031-10 885 12 00, or visit www.and.com.
The 2015 results included in this
press release have been audited.
This is an English translation
of the Dutch press release. In the event of any disparity between
the Dutch original and this translation, the Dutch text will
prevail.
The qualification regarding
revenue growth used in this press release is based on the
terminology from the scale of Mock.
For full press release including
financial statements click this link
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: AND International Publishers via
Globenewswire
HUG#1995309
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