GeoJunxion publishes its 2022/23 Annual Accounts for the year
ending 30 June 2023, showing exceptionally positive results but
also first signs of slow down for the new financial year
Capelle aan den IJssel, The
Netherlands, 26 October 2023 - GeoJunxion
(GOJXN.AS) publishes its 2022/23 Annual Accounts for the
12-months accounting year ending 30 June 2023, showing 42% revenue
growth YoY with all its financial KPIs
positive.
We are pleased to present the GeoJunxion Annual
Report for the accounting year 2022-23. It covers the 12-months
period from 1 July 2022 to 30 June 2023. The comparative financials
for the prior accounting year 2021-22 covers the 12-months period
from 1 January 2021 to 30 June 2022.
A full copy of the Annual
Report is attached to this press release and can be
found on the company’s website www.geojunxion.com, under the
Investor Relations and Financial News sections, in PDF and iXBRL
tagged versions.
The 2022-23 accounting year was, once again, an
eventful period during which the company continued its
transformation and turnaround. For the fourth year in a row,
we realized a substantial top line growth, while keeping operating
expenses essentially flat, on a like for like basis. We closed with
Net Profit and achieved a remarkable Cash-Flow positive. In
additional all financial KPIs are positive. This is even more
remarkable, given the increasing concerns about the global economy
and the turmoil that crossed the Tech Industry during 2022, with
losses for all the Tech giants and extensive reduction in
forces.
A summary of the key financials is provided in
the table below:
DETAILED RESULTS
Revenue increased year-over-year by 42% to
€3.368.000 in 2022-23 compared to €2.371.000 in the same period in
2021-22. This relevant growth was in large part due to the
non-recurring services: the non-recurring part of the revenue
(services and data together) showed an increase of almost 63%
compared with the past accounting year. The recurring part was also
higher than last year, showing a global increase in revenues of
about 10%.
Costs for maps and data was slightly reduced
compared to the 12-months period of the prior year. These costs are
always related to content purchased to maintain and enrich the
database and to hosting cost for delivering our data solutions via
the cloud.
Personnel expenses increase just of 5,5% in
2022-23, compared to the same period in 2021-22 despite 42% higher
revenue. The main driver of such a small, but very profitable
increase, was the need to execute on a timely manner on a big
contract booked at the beginning of the financial year for a big
Tech Company.
The depreciation cost on tangible fixed assets
remained nearly flat year over year while amortization costs on
intangible assets slightly increased. This increase is due to
higher capitalized development costs, in continuous increase, and
the amortization of these assets. Capitalized development costs are
amortized over a period of 7 years, while in the past (2018), they
were amortized over a longer period (15 to 20 years). Note that the
book value of the database is subject to impairment testing.
This means that the book value is compared to the value in use for
the company.
Other operating expenses decreased of about 10%
compared to the same period in 2021-22. This is the result of
the continuous execution of a strict spending review, cost control
measures, integration of tools and simplification of the group
structure.
Total Operating Expenses showed an increase of
just 4% and Net Operating Expenses showed an increase of 1%, i.e.
essentially flat, compared with the previous 12-months period,
despite the significant increase in revenues. This confirms the
general positive mood in which the company has been capable to
continue operating in the last two accounting years, with the clear
goal of “delivering more with less”.
Operating Result finally became fully positive,
€400K, compared with the still negative result of €575K of the last
year, while the Net Loss of €840K of 2021-22 finally turned into a
Net Profit of €33K in 2022-23.
The net cash flow from operating activities in
2022-23 amounted to a positive cash inflow of €530.000 compared to
cash inflow of €131.000 in the same period in 2021-22. This is
primarily due to the significant improvement in the operating
result and more favorable invoicing and collection terms negotiated
with our customers and suppliers. Like in the past year, during the
accounting year 2022-23 there were no financing transactions.
As an independent player, GeoJunxion keeps its
focus on creating “map agnostic” products, i.e., designed to be
fully integrated into any commercial and open-source brand of maps
or utilized in developing smart solutions for a large variety of
use cases in different industries and market sectors.
GeoJunxion activities are directed towards
establishing long-term relationships with its customers, through
the creation of a recurring business model rather than one-off
projects or transactions. Although the relationship may start with
a proof-of-concept or a one-off project, most of our high value
datasets require frequent and continuous updates to maintain or
increase their value. As a result, the one-off project or
proof-of-concept is often only a first step, followed by a
recurring service or a license contract. As a result, converting
the initial, one-off project into a recurring, predictable and
sustainable revenue stream. In most cases, GeoJunxion also retains
the IP and ownership of the newly developed datasets which can then
be resold to other customers, thereby leveraging the initial
investment and converting it into a virtuous business
cycle. The GeoJunxion mission remains focused on improving
road safety and contributing to a more sustainable world, reducing
the environmental impact through intelligent solutions which enable
more environmentally conscious decisions. GeoJunxion has valued
diversity, integration and investment in social responsibility for
years. We are committed to offering our daily contribution towards
a better and more sustainable work environment.
FINANCIAL OUTLOOK
According to the ECB: “Growth will be sluggish
for the rest of 2023 in the face of tighter financing conditions
and weak foreign demand. As inflation falls, household income
recovers and foreign demand strengthens, the euro area economy
should grow by 0.7% in 2023, by 1.0% in 2024.” In the last 18-24
months, “the global economy has been severely impacted by a number
of issues, including the economic crisis, recession and widespread
layoffs, in the middle of historically unprecedent times.” In
particular, during 2022, “tech companies stumbled, making that year
the worst year that the tech industry had experienced since the
financial crisis of 2008, with global losses of trillions in market
value”. As consequence, several companies have been forced to cut
costs and reduce their labor force. While GeoJunxion was only just
marginally impacted during the last two financial years, a
“long-wave effect” of the economic downturn has impacted the
company at the start of financial year 2023-24, showing the first
signals of slow down. For this reason, the company expects a
challenging year in 2023-24: With a slow start on order intake,
revenue is under pressure and likely to decline year over year or
remain flat at best. However, we remain confident in the quality of
our products, their relevance in the market, the dedication and
diligence of our teams and the trust we have established with our
customers to overcome these short- and medium-term challenges and
continue executing on our long-term growth strategy.
DELISTING FROM EURONEXT
AMSTERDAM
In a communication issued to the markets on 11
October 2023, Euronext Amsterdam has announced a delay in the
delisting of GeoJunxion NV (GOJXN) from 6 November 2023 to 18
January 2024. The date of the delisting has been adjusted to
provide GeoJunxion and other companies in the same situation, more
time to conclude an agreement with an OOB licensed auditor.
GeoJunxion is currently not in negotiations with
any of the OOB licensed auditors in the Netherlands to enter into
an agreement for the audit of its 2023-2024 annual accounts. We are
however working on the completion of a transaction with some of the
lending providers to take the company private through a sale of the
sole operating entity GeoJunxion BV, and a subsequent liquidation
of the listed company GeoJunxion N.V. Upon the completion of such
transaction GeoJunxion NV, would no longer be a listed company, nor
would it require its’ annual accounts to be audited.
CONVERTIBLE LOAN
The announcement by Euronext in April 2023 of
the planned delisting of the company has constituted an event of
default, and as a result, the convertible loan has become due.
Since that date, we have received suspension of rights letters from
the lenders as a result of which the company was not required to
pay back the loan as a result of such event of default. As of 4
August 2023, the convertible loan has reached its contractual
maturity date. At this date, the contractual 25% cash payment agio
has been added to the principal amount. This is in addition to the
PIK (Payment in Kind) interests which have been added to the
principal loan amount on a quarterly basis throughout the duration
of the convertible loan. The new principal amount of the
convertible loan per 4 August 2023, is equal to EUR 1,771,000. This
increased principal amount has become interest bearing since that
date and PIK interests are added to the principal amount
monthly.
The company has agreed with one of the lending
providers to pay its portion of the outstanding amounts under the
convertible loan.
Following and subject to the completion of the
envisaged transaction with some of the lending providers to take
the company private through a sale of the operating entity and a
subsequent liquidation of the listed company, the remaining (bulk)
portion of the outstanding convertible loan will be converted into
equity. Pending completion (or until the transaction agreement
relating to such transaction is terminated in accordance with its
terms) the remaining lending providers have agreed to suspend their
enforcement rights and have also agreed to suspend the default
interest payable on the convertible loan since its maturity date.
This increased principal amount has become interest bearing since
that date at increased interest rates of 19%, of which 3% is paid
in cash and 16% is paid in kind (PIK). PIK interests are added to
the principal amount monthly and become interest bearing as of that
moment.
OTHER TOPICS
We advise and recommend to read the full Annual
Report 2022/23, attached to this Press Release, in order to get
complete and exhaustive information about the financial and
business results and any other relevant topics, such as the
convertible loan, the delisting process and more. In addition, we
draw your attention to the other press releases issued today, in
parallel to this one, about the transaction and the convocation of
the EGM.
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.
This includes 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 slowdown 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.
Signed by
The Management Board
The Supervisory Board
Attachment: GEOJUNXION ANNUAL REPORT
2022/23
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.
—END—
About
GeoJunxion
GeoJunxion is the crossroads where fundamental,
location-aware content connects with superior, customized
intelligence and highly focused innovations to empower exceptional
experiences. With an emphasis on safety and sustainability, we are
constantly expanding our portfolio to meet the demands of a diverse
and fast-evolving market. Building on decades of experience in
mapping, the company focuses on high value, dynamic content and
building environmentally conscious applications, which enrich
safety in everyday life. With location-aware content at our core,
we know where our strengths lie and have the know-how and
technology needed to offer unrivalled, intelligent products and
services.
GeoJunxion NV is listed on the regulated market
of Euronext Amsterdam, under the
symbol GOJXN.AS
GeoJunxion Press
Contact
Tel: +31 (0)10 885 1200
Email: info@geojunxion.com
- GOJXN_Annual Report Geojunxion 2022_2023
- 20231026 - Press Release - Annual Report 22-23 (ENG)
Geojunxion Nv (LSE:0DKK)
Historical Stock Chart
From Jul 2024 to Aug 2024
Geojunxion Nv (LSE:0DKK)
Historical Stock Chart
From Aug 2023 to Aug 2024