Paragon ID, a leading provider of identification solutions for e-ID, Transport & Smart Cities, Traceability & Brand Protection, and Payment, publishes its consolidated revenues for the third quarter of the financial year 2019/2020 (year-ending 30th June 2020).Paragon ID's consolidated revenues in the third quarter of the 2019/2020 financial year totalled €29,0 M, growing +6% over the same quarter in 2018/19 (+7% at constant exchange rates).Organic growth in the third quarter was negative by -9%.The month of March was marked by a significant reduction in sales as Covid-19 started to impact on its Mass Transit and Track & Trace customers. As indicated at time of communication of the half-yearly results, the effective suspension of travel in many major urban areas resulted in reduced ticketing orders and requests to suspend deliveries.At the end of the first nine months of the financial year 2019/2020, Paragon ID's consolidated revenues totaled €85,3 M, representing a growth rate of +10% (also +10% at constant exchange rates). Year-to-date organic growth at constant exchange rates remains positive at +1%.Continuing development of Paragon ID's Payment activity and impact on the geographical split of the businessParagon ID's Payment activity now represents 12% of its revenues, due to the acquisition of Thames Card Technology in November 2019 and to the increasing contribution of licensing revenues realised with the AmaTech technology. For the first nine months of the current financial year, revenues from Payment totalled more than €10,1 M. In the same period in the prior year, revenues from Payment represented less than 1% of Paragon ID's total turnover.The historical activities of Paragon ID, notably Transport & Smart Cities and Track & Trace) are those which have been most penalised by the events of mid-March, resulting in negative cumulative growth year-to-date of -3% (from +3% cumulative growth at the end of the first half).Geographically, it is noteworthy that revenues realised in the UK now represent almost one-third (32%) of the total turnover of Paragon ID for the first nine months of the year, benefiting from the contribution of Thames Card Technology. Last year, the UK represented 26% of Paragon ID's business.EMEA (Europe Middle East & Africa) now accounts for 53% of sales (vs. 62% last year).Paragon ID's activities in the US continue to post encouraging numbers, despite the seriousness of the Covid-19 epidemic. The US factory continues to produce at 100% of its capacity. Revenues achieved in the US accounted for 15% of turnover (vs. 12% last year).Clem Garvey, CEO of Paragon ID commented:"I am very proud of the way the Paragon ID teams have managed the current situation.From the very first indications of impending danger, all possible measures were taken to protect the health of our employees. This was our first priority – protecting lives.Our second priority has been to protect the livelihoods of our employees and of all stakeholders in Paragon ID. At time of writing, we have managed to keep all five of our factories open, continuing to serve our customers and our local economies. While many of our clients have closed their doors, many others in the food industry, in the pharmaceutical and medical sectors, in Mass Transit and in e-ID rely on us to continue to function. We have not been found failing in our commitment to them and in our commitment to maintaining the economic activity in the countries in which we operate.We are grateful and recognisant of the significant support provided by governmental programmes to support enterprise at this difficult time and we have taken advantage of these to ensure that the economic impact of the Covid-19 crisis on our employees has been minimised during this period of reduced activity.The commitment shown by our teams to the company, to our clients and to each other inspire me with confidence that Paragon ID can successfully negotiate this very difficult period."
Paragon ID reports contraction due to Covid-19
