Financial & Business update Q2 (October ’22 – December ‘22) and
first half of F.Y. 2022-23 (July ‘22 – December ‘22)
GeoJunxion NV
(ticker:
GOJXN.AS)
Financial &
Business update
Q2 (October
’22 – December
‘22) and first
half of F.Y.
2022-23
(July ‘22
– December
‘22)
Key Facts:
- 63%
revenue growth for the first half of F.Y. 2022/23 and 25%
growth in Q2 2022/23 compared to the same period in 2021/22;
-
8% reduction in
Net Operational Expenses (OPEX) for the first half
of F.Y. 2022/23;
- EBITDA and
EBIT positive in first
half of F.Y. 2022/23 by, respectively, €1.263 K and €603 K;
- Net Profit after tax of
€474 K in the first half
of F.Y. 2022/23, compared to a Net Loss of €342 K in 1H
2021/22;
- Positive Cash Flow of
€499 K in the first half of F.Y. 2022/23,
compared to a cash outflow of €148 K in 1H 2021/22.
- GeoJunxion is very pleased to
increase the outlook for the accounting year
2022-’23: We now expect our topline to grow by 30 to
35% compared to last year.
Capelle aan
den
IJssel,
The Netherlands, 23
February
2023,
For the first half of the
accounting year 2022/23,
GeoJunxion announces 63%
revenue growth (vs
1H 2021-22),
a net profit after
taxes of €474
K and positive cash flow
of €499 K.
GeoJunxion CEO Ivo Vleeschouwers: "We are very
excited with the progress realized in the first half of the
financial year. We had an exceptional order intake and revenue
generation for Location Intelligence Services compared to the same
period of the last accounting year. We managed to generate this
additional revenue without adding costs. In addition, we converted
the entire net profit into additional cash on our account!”
The current fiscal year covers the 12 months
period from 1 July 2022 to 30 June 2023. The first half (1H) covers
the period from 1 July 2022 to 31 December 2022 and Q2 covers the 3
months period from October 2022 to December 2022.
In 1H 2022-23, GeoJunxion’s business showed an
extraordinarily strong performance: Revenue
grew sharply
(+63%) compared
to the same period of the previous fiscal year.
Order intake
was extremely positive
during the course of the first half of the
year: almost 4 times higher than the same period of the
last year. In Q2 order intake was 10% higher than last year.
Operational expenses have been reduced by 10% YoY. The operating
result, the result before tax and the Net Profit all turned to
positive numbers. The cash flow for the Q2 was also positive by
€866 K, resulting in an overall positive cash flow of €499 K for
the 1H 2022-23. This strong recovery was expected and resulted from
collecting the open customer invoices during Q2.
FINANCIAL
HIGHLIGHTS Q2
(October ‘22 – December
‘22) and
1H
2022/23 (July
‘22– December
‘22) vs
same period in
2021/22
- 63% revenue growth
for the 1H 2022/23 (25% growth in Q2 2022-23) compared to the same
period in 2021/22;
-
8% reduction in
Net Operational Expenses (OPEX) for the 1H 2022/23
(6% in Q2 2022-’23);
- EBITDA and
EBIT positive in 1H
2022/23 by respectively €1.263 K and €603 K;
- Net Profit after tax of
€474 K in 1H 2022/23, compared to a Net Loss of €342 K in
1H 2021/22;
- Positive Cash Flow of €499
K in 1H 2022/23, compared to a cash outflow of €148 K in
1H 2021/22.
OUTLOOK FOR THE ACCOUNTING YEAR
2022-2023
GeoJunxion is very pleased to increase
the outlook for the accounting year 2022-’23: We now
expect our topline to grow by 30 to
35% compared to last year. This is improved from our
previous target of 25 to 30% growth. This expectation is built
primarily on orders already booked and, to a lesser extent, on our
very promising pipeline of opportunities from existing and new
customers. With this improved topline, EBITDA, EBIT and Cash flow
are expected to be positive and net earnings are moving close to
the break-even point.
OPERATIONAL HIGHLIGHTS AND STRATEGY
UPDATE
Strategy Update
GeoJunxion’s strategy remains focused on
creating “map agnostic” data products: digital geo-localized
content, designed to be fully integrated into or overlaid on any
commercial or open-source maps, or to be utilised in developing
smart solutions for a large variety of use cases, in different
industries and market sectors.
This strategy has proven itself, as it delivered
year-over-year growth of +40% during the last 36 months. We will
therefore continue to diligently execute on this strategy and
expand the scope of our existing product portfolio.
In the second semester of the financial year,
great attention and dedication will continue to be paid for the
existing clients (Global Tech Companies) in executing custom
Location Intelligence services and extending the scope of those
project.
GeoJunxion’s 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
the Company’s efforts go into building value-added, dynamic
content, requiring continuous and frequent updates to maintain and
increase their value over time. This means that most of our
proof-of-concept and one-off projects are a launch-pad for
establishing a service or license contract, converting the initial
activities into a recurring, more predictable and sustainable
business model.
When executing projects, GeoJunxion typically
retains the Intellectual Property and ownership of the newly
developed datasets and solutions, for licensing to other customers.
Thereby, leveraging the initial investment and creating a virtuous
business cycle.
Our mission remains focused on improving road
safety and contributing to a more sustainable world, reducing the
impact on the environment, through intelligent solutions enabling
more environmentally conscious decisions.
Central to GeoJunxion’s strategy are:
- Cost effective research, 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 Developments
While clear signs of improvement were showing in
some industry sectors, the conflict in Ukraine and its direct and
indirect consequences continues to bring serious concerns in the
market. Existing and prospect clients strictly monitor their
expenditures and continue to be prudent in contracting
projects.
GeoJunxion has no direct business exposure to
the events in Ukraine or Russia. We have no active customers, or
deliveries due to, or to be received from Ukraine or Russia.
GeoJunxion is however exposed to rising inflation rates, resulting
from increased energy and other raw material prices. This is
impacting salary & benefit expenses of our staff, costs for
office rent and other services.
At the same time, we see that demand for
location-aware content is still increasing in various industries
and markets, despite the concerns on the health of the global
economy. While many big Companies are executing significant
reductions in force, to cut costs, GeoJunxion remains positive and
is actively re-enforcing the team with key profiles necessary to
consolidate the current results and pave the way for continued
growth.
The largest market opportunity for GeoJunxion
remains, by far, with big Tech Companies, making extensive use of
geo-localized data for their business and end-user solutions. In
this market segment, we are dedicating a sizable portion of our
resources on project execution. We booked and executed sizable
projects in Q1 and received project extensions and booked new
opportunities also in the second quarter. There are additional new
and interesting opportunities in the pipeline for the remaining
part of the fiscal year.
In the automotive industry we see growing
opportunities derived from adoption of advanced driver-assistance
systems, such as ISA (Intelligent Speed Assistance). We can also
experience a growing demand for more cost-effective mapping
solutions which have the most up-to-date and relevant data content.
Premium data content towards safety on the road and environmental
sustainability remains our major interest and focus for product
development.
GeoJunxion also remains active in identifying
opportunities in more traditional markets, such as Transport &
Logistics, Real Estate, Geo-Marketing, Business Analysis, Travel
& Tourism, as well as with the Public Administration. For the
next months, GeoJunxion is also re-enforcing the efforts for the
Outdoor Venue Plans, our last mile customized maps, where other
global map providers do not offer concrete
solutions.Business Development
In 1H (July to December) 2022-23, the Location
Intelligence Services have played a fundamental role in our
business development. In Q1 we started and partly completed the
execution of a newly won big project, which has been extended in
scope during Q2 2022/23. In Q2 we have been also awarded for new
Location Intelligence projects. These new contracts, which are in
execution, will continue to convert into revenue during the third
quarter of this Financial Year.
During Q2, our Sales and Business development
teams attended more events in person, meeting with partners and
clients face to face, to promote GeoJunxion’s brand, its products
and services.
Product Development
Custom project executionWe
continue to put significant efforts in the development of custom
location intelligence projects for a global Tech Company. The first
project, announced in August ’22, has been extended in scope, and
therefore prolonged into Q2. In the second quarter, other custom
projects for global Tech Companies have been added to our workload.
Their execution is in progress and is expected to be completed
during the Q3 of F.Y. 2022/23.
Automotive
product developmentOn the R&D
side, most of the product development was focused on the execution
and refinement of the data for an important Infotainment System
Manufacturer. This project, announced in April 2022, is close to
the completion of the first phase: the completion of a market ready
product, including field tests and quality controls.
Eco Alert
Zones and School Safety
ZonesSmart Geofences are key products in the GeoJunxion’s
portfolio. Eco Alert Zones and School Safety Zones have been kept
up to date during the course of last quarter. They are increasing
in number, geographical coverage and also in the type of areas. New
School Streets have been analyzed and encoded. Having confirmed
specific market interest for such geofences, we have decided to
launch an innovative proof of concept project with the intent to
develop deep learning methods in the field of satellite imagery,
analysis and object recognition, applied to this specific use case.
This activity will continue for the entire year 2023.
ORDER INTAKE
Order intake confirmed the positive trend:
following an exceptionally good Q1 2022/23, with an increase of
more than 6 times compared with the same period of last year, Q2
order intake was 10% better than last year. The value of orders
booked in this very remarkable first
semester
F.Y.
2022/23, was 4 times
bigger than 1H 2021/22.
REVENUE
In Q2 2022/23, revenue increased by
+25%. Growth was
realised in all our product lines, with recurring revenue growing
by 45% and non-recurring service revenue growing by 17%. It is very
encouraging to see the recurring products now showing the highest
growth percentage.
For 1H 2022/23, revenue increased by
+63%. Also, during the entire
first semester, the growth has been realized in all our product
lines, with recurring revenue growing by 22% and non-recurring
service revenue growing by 87%.
GeoJunxion tracks its revenue by product type
and by the nature of the underlying contract (recurring versus
non-recurring). The main revenue growth has been realized in
non-recurring location services, but also the recurring revenue
from licenses and royalties showed an increase. The recurring
service revenue showed a reduction, primarily due to the timing of
the project execution. This will be caught up during Q2 2022-23.
Recurring service revenue includes the updating services of our Eco
Alert Zones product and other data products. The non-recurring
service revenue includes tailored research and collection of data
sets and creation of geo-located content.
OPERATING RESULT
The Q2 2022-23 operating result shows a profit
€153 K, compared to a loss of €60K during the same quarter last
year. There are three main drivers for this year-over-year
improvement:
- 25% increase in revenue to €846K
(€679K, PY).
- 6% decrease in net operational
expenses. This is remarkable considering the inflationary pressures
and the 25% increase in revenue.
- Higher Capitalized development
costs +€33K (+27%) due to ongoing investments in new products and
coverage extension of existing products.
The 1H 2022-23 operating result shows an
operating profit €797 K, compared to a loss of €185 K during the
same period last year. The main drivers for such a positive result
are similar to those mentioned for the quarterly improvement:
- 63% increase in revenue to €2.213 K
(€1.354 K, PY).
- 8% decrease in net operational
expenses. This is remarkable considering the inflationary pressures
and the 63% increase in revenue.
- Higher Capitalized development
costs +€96K (+39%) due to ongoing investments in new products and
coverage extension of existing products.
ORGANIZATION
GeoJunxion has achieved Level 2 certification on
Social Entrepreneurship: the Prestatieladder Socialer Ondernemen.
This independent assessment showed that GeoJunxion offers
high-quality employment to people who have difficulty accessing the
labor market and collaborating with like-minded organizations. With
this certification, GeoJunxion provides an above-average
contribution in the field of social entrepreneurship in a
sustainable way.
In the second quarter, we increased the efforts
to identify the right profile as IT Administrator. We succeeded in
this search at the end of December and the new employee started his
new adventure with GeoJunxion early January 2023.
FINANCIAL POSITION
GeoJunxion continues to make great progress in
turning its business around from a digital map supplier to a
premium location content and location intelligence service provider
with a subscription based, recurring “data as a service” revenue
model. The results reported for the 1st Half of 2022-23, with
growing revenue and a net profit for the period, are evidence of
this progress. Based on our current outlook, the available cash on
hand is estimated to be sufficient to cover our operational
requirements for at least the next 12 months.
APPOINTMENT OF EXTERNAL
AUDITOR
In the past few months, we have had extensive
discussions with OOB/PIE licensed auditing companies. In spite of
improved financial results, positive cash flows generated, improved
governance & internal control processes, none of the auditing
companies contacted was willing to provide a quotation for
performing the audit work. The main reasons given by the auditing
firms are the lack of internal staff capacity to execute the work
and the limited size of the company and its market
capitalization.
With the end of the 24-months period given by Euronext Amsterdam
approaching, we are actively reaching out to other companies in a
comparable situation to formulate a joint position. At the same
time, we continue to investigate alternative resolutions such as
for example: the NBA route and alternative stock markets. Our
thinking is however not limited to these 2 options. We are
exploring all other options, in order to make the best decision if
and when we are faced with this situation.
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 2021-22 annual report, as published on 27
October 2022, describes the primary 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, combined with making the best use of our office space in
Capelle aan den IJssel to facilitate personal contact and create an
optimal work environment. Our people are our key assets, and we do
our utmost to keep them satisfied, safe and healthy.
BOARD OF MANAGEMENT STATEMENT
The Board of Management hereby declares that, to
the best of its knowledge, the summarized Q2 and 1st Half (July –
December) 2022-’23 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
subsidiary as stated in the consolidated financial statements, and
that the Board Report, as included in this Interim Financial
statements, 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
The GeoJunxion group contains 2 entities:
GeoJunxion N.V., (the holding entity, quoted on Euronext Amsterdam)
and its 100% operating subsidiary GeoJunxion B.V.
FORWARD-LOOKING STATEMENTS / IMPORTANT
NOTICE
This 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, labor and
other cost inflation, 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, 23 February 2023,Ivo
Vleeschouwers – CEO / CFO Francesco Altamura - CBO
This is a public announcement by GeoJunxion N.V., pursuant to
article 17, paragraph 1 of the European Market Abuse Regulation
(596/2014). This public announcement does not constitute an offer,
or solicitation of an offer, to buy or offer securities in
GeoJunxion N.V.
- 230223 Press Release Financial Results Q2 and HY 2022-23
GeoJunxion NV_EN
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