Paragon ID, a leading provider of identification solutions for e-ID, Transport & Smart Cities, Traceability & Brand Protection, and Payment, has published its consolidated accounts for the first half of the 2019/20 financial year. At the end of the 1st half of 2019/20, Paragon ID posted turnover of €56.3 million, an increase of +12%. During the period, Paragon ID acquired Thames Card Technology, strengthening its Payment activity, particularly in the smart card market in the United Kingdom. On a like-for-like basis, organic growth at constant exchange rates was +7%. By integrating the performance of Thames Card Technology, proforma1 organic growth was +8%.EBITDA amounted to €5.3 million in the 1st half of 2019/20, up +87% thanks to the strong growth in revenues and the increase in the Company's Payment activity. Application of the new IFRS 16 accounting standard, which requires reclassification of certain leasing costs to depreciation and amortization, had a positive impact of € 0.6 million on the half year EBITDA. The EBITDA margin for the 1st half year of 2019/20 amounts to 9.3% of sales (8.2% excluding IFRS 16 impact).After accounting for depreciation and amortization (€3.7 million) and for the non-cash expenses relating to share-based remuneration of warrants and free shares (€0.4 million), current operating income stood at €1.2 million in the 1st half of 2019/20, against €45 k a year earlier.Non-current income and expenses amounted to €(0.2) million (vs. €(0.3) million in the 1st half of 2018/19), including, in particular, fees related to the acquisition of Thames Card Technology. Operating profit amounted to €1.0 million (vs. €(0.3) million in the 1 st half of 2018/19). After taking into account a financial result of €(1.3) million, including €(0,4) million of interest charges related to convertible bonds that were converted into shares in February 2020, the net income of the company amounted to €0.6 million, as against €(1,5) million a year earlier.On the balance sheet, fixed assets amounted to €89.7 million at the end of December, an increase driven by the integration of Thames Card Technology since November 1 st, 2019 and by the implementation of the new IFRS 16 standard. Movement in trade receivables and inventories also reflects the integration of Thames Card Technology. On a like-for-like basis, trade receivables and inventories fell by €(2.3) million and €(0.7) million respectively over the six-month period, reflecting efforts in terms of debt collection and inventory optimization.Available cash was €4.8 million as of December 31st, 2019, down from June 30th, 2019 mainly due to the acquisition of Thames Card Technology using the Company's existing funds. Net equity in the business amounted to €28.0 million as at December 31st, 2019. Financial debts are down slightly, amounting to €15.5 million at the end of December compared to €16.3 million at the end of the 2018/19 financial year.
Paragon ID reports EBITDA increase of 87%
