AND realizes strong result in first half of 2012, expects the full year 2012 to be profitable
- Revenue for first half of 2012 € 3.4 million compared to € 1.2 million in first half of 2011
- Profit first half of 2012 € 1.9 million compared to € 2.0 million loss (excluding impairment of € 10.9 million) in first half of 2011
- Profit per share first half of 2012 € 0.51 compared to € 3.46 loss per share in first half of 2011
- Strong cash position of € 3.5 million at the end of June 2012
- Cost savings lead to substantial lower cost level in 2012
AND International Publishers NV has realized a sharp increase in revenue for the first half of 2012. Thanks to the increase in revenue and the implemented cost savings the loss suffered in 2011 turned into a profit of € 1.9 million in the first half of 2012. Earnings per share amounted to € 0.51. Based on the results for the first half of 2012 AND expects revenue throughout 2012 will increase to at least € 4.4 million. AND expects the full year 2012 to be profitable.
AND CEO Hugo van der Linde: "We are very pleased with the progress in the first half of 2012. Thanks to the concluded contract with the Russian Navitel the end of March, revenue increased by 177%. In addition, we reap the fruits of the reorganization achieved in 2011. Total operating expenses decreased by 35%, resulting in a net profit of € 1.9 million."
Course of events for the first half of 2012
At the end of March a contract has been signed with the Russian Navitel. The contract concerns the delivery and maintenance of navigation maps of Western Europe. The contract has contributed an important part to the revenue for the first half of 2012.
The strategic repositioning, initiated in 2011, has been completed in early April. The conversations with different parties and scenarios which have been evaluated do not offer added value to the shareholders.
Continuation of the current focus of only selling maps is too unilaterally to achieve future growth. However, AND expects growth opportunities by offering services in combination with its own maps and data. By offering maps as custom-made solutions to its customers the value of AND's products increases. The content and value of AND's maps further increases with data obtained within these projects. The enriched database obtained, combined with the often branch and industry specific customized solutions provides AND the leverage for further growth. For that reason, AND focusses on a strategy whereby its own maps in combination with services will be offered to the market.
At the shareholders meeting on May 15, 2012, Mr. H.F. van der Linde has been appointed as director of AND International Publishers NV. Since 2006, Hugo van der Linde works for AND and was responsible for the operational activities (as COO). Since October 1, 2011 he was appointed as director of AND Products BV.
Mr. M.P. Oldenhof has resigned as director by May 15, 2012. Maarten Oldenhof has been with AND for almost 10 years as director.
Besides the appointment of a new director, the shareholders have appointed Mr. M.S. Douma as a new member of the Supervisory Board. The Supervisory Board now consists of three members. Maarten Douma is working as Investment Director at the Indofin Group. The Indofin Group is an important shareholder and holds an interest in AND through Parkland NV.
Revenue increased from € 1.2 million to € 3.4 million, an increase of € 2.2 million. This increase is partly achieved by the signed contract in March with the Russian Navitel, which has contributed an important part to revenue.
Thanks to the reorganization total operating expenses (excluding impairment loss) have decreased by € 0.7 million in the first half of 2012 to a total of € 1.5 million.
The cash position is substantially reinforced. Net cash flow amounted € 2.4 million whereby the balance of cash and cash equivalents increased from € 1.1 million to € 3.5 million.
Shareholders' equity of € 9.8 million amounts 75% 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 still offers opportunities and AND will continue to improve and update its existing maps more effectively. In addition AND will increase its added value by offering its maps and data as customized services. Its enriched database, combined with the often branch and industry specific customized services provides AND the leverage for further growth.
Outlook for 2012
Based on the results for the first half of 2012 AND expects that the revenue for the full year 2012 will increase to at least € 4.4 million (2011: € 2.4 million). AND expects the full year 2012 to be profitable.
AND would point out that, despite the outlook for 2012, economic conditions, market developments and business models in the market for digital maps are still highly uncertain. Also, the new strategy towards providing customized solutions still needs to prove itself.
For a detailed description of the risk factors that apply to AND International Publishers NV and its subsidiaries, you are referred to page 13 of the annual report for 2011.
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)
Rotterdam, 8 August 2012
H.F. van der Linde