Paragon ID reports revenue boost

30/01/20

Paragon ID, a provider of identification solutions for e-ID, Transport & Smart Cities, Traceability & Brand Protection, and Payment, has published its consolidated turnover for the 2nd quarter (from October 1st to December 31st, 2019) of the financial year 2019/20 (ending June 30th, 2020).

In the 2nd quarter of its 2019/20 financial year, Paragon ID recorded consolidated sales of €29.5 million, up +17% compared to the 2nd quarter of 2018/2019 (+18% at constant exchange rates).

Within the quarter, Paragon ID acquired Thames Card Technology, strengthening the Group's presence in the Payment services domain and in the UK smart card market in particular. On a like-for-like basis, quarterly growth stood at +6% (+7% at constant exchange rates).

Over the 1st half of 2019/20, Paragon ID's consolidated turnover amounted to €56.3 million, up +12% (+11% at constant exchange rates). On a like-for-like basis, organic growth was +7% (+7% at constant exchange rates).

Including the performance of Thames Card Technology, total organic growth was +8%, in line with Paragon ID's ambition, over time, to deliver double-digit organic growth.

 

Strong development of the Payment activity and growth in the United Kingdom

Paragon ID's new Payment activity recorded half-year revenues of €4.7 million (nil in the 1st half of 2018/19). These revenues comprise royalties generated from the licensing contracts of AmaTech's technologies and two months' turnover of Thames Card Technology, acquired on 1st November 2019.

Revenues from the group's historical markets (eID, Transport & Smart Cities and Traceability & Brand Protection) increased by +3% over the 1st half of the financial year, with particularly strong double-digit growth in Transport & Smart Cities.

By region, the half year was marked by strong development in the UK (30% of the revenues for the 1st half year), which benefited both from growth in historical activities and from the contribution of Thames Card Technology. EMEA (Europe Middle East & Africa) area represented 54% of the half year revenues, and USA 16%.

 

Clem Garvey, Paragon ID CEO, stated:
“Our performance in the 1st half of this financial year is fully in line with our strategic objectives. Strong performance in the Payment sector represents a significant opportunity for growth and initial indications are that Thames Card Technology will prove to have been an excellent acquisition for Paragon ID.
Organic growth at constant exchange rates of 7% in the 2nd quarter, despite small delays in a number of projects, underpin our confidence in achieving our annual objectives of solid growth with improving rates of profitability.”

Confirmation of the 2019/20 objectives: sustained growth and further improvement in profitability

The 2nd quarter was marked by sustained growth in the company's revenues, including the growing impact of the new Payment activity. Revenues from the licensing of AmaTech's technologies underpin an ongoing improvement in margin levels.

At the end of the 1st half of the 2019/20 financial year, Paragon ID is ahead of its objective to deliver sustained growth in revenues over the whole period, and to improve profitability.

In the medium term, the company aims to achieve a double-digit growth in revenues coupled with double-digit percentage EBITDA margins.

 

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