- Pro forma growth of +9% for the People Identification activities
- A start to the financial year in line with the market plan
Paragon ID (ASK - Euronext Paris - FR0011980077), the European leader for identification solutions, particularly for Transport & Smart Cities, e-ID, and Traceability & Brand Protection, has published its consolidated turnover for the first quarter of the financial year 2017/2018 (from July 1st to September 30th 2017), which represents the first fully complete and consolidated quarter following the acquisition of the Paragon Group's Identification Division by ASK (legally considered a "reverse acquisition" of ASK by the Paragon Group's Identification Division).
The first quarter (Q1) of 2016/17 turnover derives from the consolidated financial data of the Paragon Group's Identification Division. Prior to the completion of the merger, Paragon Group reorganized its division by aggregating all of its "Identification" subsidiaries (five in total) under a lead holding company, Paragon France SAS, on February 28th, 2017. The reorganisation of the Paragon Group's Identification Division resulted in the new subsidiaries of Paragon France SAS being consolidated from March 1st 2017. Consequently, the consolidated Q1 results for 2016/17 did not yet include these different subsidiaries.
The first quarter pro forma results for 2016/2017 were established as if the merger had taken place as of July 1st, 2016. The published turnover for Q1 2016/17 consisted only of the former ASK business.
|€M – IFRS standard – Non-audited data||2017/18 |
In the first quarter of the 2017/18 financial year, Paragon ID (ASK) recorded a consolidated turnover of €27.4 million, compared to €11.2 million a year earlier, an increase of 145 %. As stated, the consolidated turnover for the first quarter of 2016/17 did not include all the subsidiaries of the Paragon Group's Identification Division (effective date of March 1st, 2017) or the ASK contribution (consolidated since May 1st, 2017). On a pro-forma basis, the growth for Q1 2017/2018 is +4%.
- Activity per business line
The People ID business, which includes the e-ID, Transport & Smart Cities, and Gaming activities, recorded sales of € 20.3 million for the quarter, up by 9% on a pro forma basis.
More particularly, the e-ID activity achieved a strong pro forma growth of + 25% over the period, driven by the development of Passports, particularly with the development of new countries in Europe and the increase in volumes linked to the political commitment of some countries wishing to open up the borders to their citizens. In the United States, the company recorded an increase in driving license volumes in new US states.
The Transport & Smart Cities activity went up by 4% on a pro forma basis, with strong growth in RFID tickets. The company benefits from the renewal of contracts in London, Ile-de-France, and more recently the Régie des transports de Marseille. The historic presence in Central America has also had a positive impact. In the United Kingdom, the Smart Cities activity benefited from the first contributions from the Burall InfoSmart acquisition made during the summer.
Finally, in the Gaming activity, the contract with Hasbro - a global play and entertainment company - for the supply of NFC cards at the heart of its DROPMIX music game, also contributed to the quarter's growth. The game, which launched a few weeks ago, is proving very popular.
The Product ID business, which combines the activities of Product Traceability & Brand Protection, recorded a turnover of €7.1 million, down by -8% on a proforma basis. This decline is primarily related to the transfer of a non-strategic business to another Paragon Group's entity, a transfer which was made prior to the Identification division's merger with ASK. The continued strong development of the RFID Tags market leads the business to strengthen its commercial and marketing investments in this area.
Julien Zuccarelli, Paragon ID (ASK) CEO, declares:
This first quarter 2017/18, the first one following the strategic merger of Paragon Group identification activities with ASK, is perfectly in line with our expectations. As we are implementing our industrial reorganisation, we are already seeing, through our results, the first positive signs of this merger: commercial synergies are in place and have been very well received by our customers. We are in line with our ambitions for 2017/18, which will be closed at the end of June 2018. "
- Next meeting
|Shareholders' meeting||13th December 2017|
About Paragon ID1
Paragon ID1 (ASK) has been created following the merger, at the end of April, between ASK and the Identification division of Paragon Group. Paragon ID1 (ASK) is a leader in identification solutions in the e-ID, transport & smart cities and traceability & brand protection sectors.
Paragon ID1 (ASK) is a leader in identification solutions, in particular in the e-ID, Transport & Smart Cities and Traceability & Brand Protection sectors. Using the latest technologies such as RFID and NFC, Paragon ID smart cards, tickets, labels and tags to worldwide clients in diverse markets including public transport, manufacturing, logistics, gaming and retail.
Paragon ID1 (ASK) employs more than 600 staff, with manufacturing sites close to its global customers.
ISIN code: FR0011980077 - Ticker: ASK - Number of issued shares: 58 286 819
More Information at ASK-Contactless.com
1 The company ASK intends to change its name to Paragon ID. This new name will be put to the vote during the next shareholders meeting on December 13th.