ASK (Paragon ID) : Consolidated turnover 2016/17: EUR 63,1 M with a yearly growth of +28% (AcT)

• Proforma turnover 2016/17 : €111 M at constant exchange rates (€108 M at current exchange rates)

Paragon ID (ASK - Euronext Paris - FR0011980077), European leader of identification solutions, in particular in Transport & Smart Cities, e-ID and Traceability & Brand Protection, announces its annual turnover for the financial year 2016/17 ending 30 June 2017.

The merger between ASK and the Identification & Traceability division of Paragon Group Ltd. which created the new Paragon ID¹(ASK) group, constitutes a reverse takeover in line with IFRS 3 “Business Combinations”, thus and in line with the accounting standard following the transaction, the legal Acquirer, ASK, will be treated as the acquired entity from an accounting standpoint. Consequently, the consolidated figures 2015/16 presented are issued from the historical financial information of the Identification & Traceability division of the Paragon Group Ltd. The consolidated figures 2016/17 represent the financial information of the Identification & Traceability division of the Paragon Group Ltd. as well as ASK, consolidated since the 1^st of May 2017 (2 months of activity consolidated). The 2016/17 pro forma figures were established as if the merger had occurred on the 1^st of July 2016.

For the 2016/17 financial year, Paragon ID1 (ASK) reported a consolidated turnover - consisting of the 12 months of activities of the Identification & Traceability Division of Paragon Group Ltd. and two months of activities of ASK - of € 63.1 million, an increase of 28%.

On a pro forma basis, as if the merger between ASK and the Identification & Traceability Division had taken place prior to the start of the financial year 2016/17 allowing for consolidation over the full period, annual revenues amounts to €108 M and €111 M at constant exchange rates.

• Proforma activity per business unit

The e-ID Business Unit, which came entirely from the former ASK business, totaled € 13.3 M pro forma sales in 2016/17, representing 12% of the total activity of the new company. The adoption of contactless technologies within identity documents, the increasing challenges around the security and safety of individuals and the growing requirements coming from new countries are the main drivers for Paragon ID1 (ASK)'s growth strategy in this activity.

The Transport & Smart Cities Business Unit accounted for €64.0 million of pro forma sales in 2016/17, representing 59% of the new business. This activity has confirmed the company's footprint on the European market over the last few months with the renewal of several public transport contracts for the cities of London, Île-de-France region as well as Marseille, for which Paragon ID¹ (ASK) secured a 5-year contract for the supply of RFID tickets. In the United Kingdom, the Smart Cities activity is starting to benefit from the recent acquisition of Burall InfoSmart. Paragon ID1 (ASK) is also seeing significant growth in the United States. The company has established its presence in the major cities, including the renewal of the Los Angeles, Jacksonville and Vancouver contracts, and strengthened its relationship with key integrators in the transportation sector.

The Traceability & Brand Protection Business Unit generated pro forma sales of €30.8 M in 2016/17, accounting for 29% of Paragon ID1 (ASK)'s turnover. The robust industrial activity in France fosters the development of the Logistics and Distribution sectors, areas where solutions and services offered by the new company around product traceability and protection against fraud are increasingly required.

Finally, it should be noted that within the three Business Units, the Services provided (Personalization, Data Management, Mobile Solutions, etc.) and the development of Secure solutions (Embedded Security Applications) have significantly grown and account for 10% of Paragon ID1 (ASK)'s pro forma revenues in 2016/17.

• Goals

It was announced back in Spring that the objective in bringing the two entities together was to build a leader of identification solutions. Paragon ID1 (ASK)'s teams continue to be strongly focused on this goal. By combining the know-how of ASK with that of Paragon Group, Paragon ID1 (ASK) relies on a unique technology platform and on a global industrial base.

With its unique secure contactless technology, Paragon ID1 (ASK) offers a wide range of secure RFID solutions, embedded in all types of media (Passports, ID Documents, Smart Tickets & Labels, Smart Cards, Smartphones). These products are completed with a range of associated services that areincreasingly more secure and advanced, allowing clients to safely migrate to the digital world. 

Serving customers with a growing global reach, Paragon ID1 (ASK) has the geographical spread required to be close to them. With more than 600 employees worldwide, Paragon ID1 (ASK) has a solid industrial base, with manufacturing and service centres in the US, the UK, China, Romania and France. The company plans to grow further in key areas including continental Europe, the UK and the US.

The company has strong development ambitions, both through organic growth with a double digit growth plan for contactless activities (tags NFC, RFID) and external growth, built on Paragon Group's proven experience of successful acquisitions and integrations. These goals are materialized through the following financial objectives to 2021:

• A target of €250M turnover
• An EBITDA of more than 10%

Julien Zuccarelli, Managing Director at Paragon ID¹ (ASK), comments:

" The merger of the identification and traceability activities of Paragon Group and ASK - official since the end of April - has had little impact on the results of the fiscal year ending June 30, 2017. The new company is now implementing synergies at an operational level and we will start seeing the first positive results soon. Our industrial reorganisation is underway as announced early September and our R&D unit is being strengthened. Our new organisation will provide the foundation for an industrial efficiency which is essential for our teams to achieve profitable growth.

Our range of products and services on the contactless technology market is unique. Paragon ID (ASK) confirms its ambition to become a leader of identification solutions, serving clients in e-ID, Smart Cities and Traceability markets, to achieve by 2021 the target of €250M turnover and a double-digit EBITDA."

• Next publication

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Source : Actusnews