Paragon ID Showing Resilience In H1 2020/21

  • Half-year turnover down -28% (down -37% at constant exchange rates and scope), heavily impacted by the pandemic.

  • EBITDA percentage margin largely preserved at 8.6% (9.3% in prior year) through cost cutting and optimization of industrial capacity.

Paragon ID (Euronext Paris - FR0013318813 - PID), leading provider of identification solutions for Transport & Smart Cities, e-ID, Traceability, Brand Protection and Payment, publishes its consolidated accounts for the first half (July 1, 2020 - December 31, 2020) of the 2020/21 financial year which will end on June 30, 2021. These consolidated half-yearly accounts, approved by the Board of Directors on March 26, 2021, were subject to a limited review by the statutory auditors.

Airweb, in which Paragon ID holds 80% of the capital since November 2020, has been consolidated since November 1, 2020. Thames Technology has been consolidated since November 1, 2019.

In €M – IFRS standards H1 2020/21
(6 months)
H1 2019/20
(6 months)
Turnover 40.7 56.3
EBITDA1 3.5 5.3
EBITDAMargin 8.6% 9.3%
Expenses related to share-based payments -0.2 -0.4
Amortization and depreciation charges -4.1 -3.7
Current operating income / loss -0.7 1.2
Non-current income and expenses -1.7 -0.2
Operating income / loss -2.5 1.0
Financial result / loss -0.6 -1.3
Other and taxes 0,4 -0,3
Net result / loss -2.7 -0.6

1 Current operating income before (i) depreciation and amortization, and (ii) calculated charges related to share-based payments

In the 1st half of 2020/21, Paragon ID recorded consolidated sales of €40.7 million, down 28% compared to the 1st half of 2019/20 (-37% at constant exchange rates and scope).

Historical activities impacted by the health crisis, sustained development of the Payment division

The Transport and Smart Cities and e-ID activities, directly linked to the flow of people and goods, continued to be impacted by the Covid 19 health crisis. The Traceability & Brand Protection activity was more resilient in the 1st half of the year, driven by good momentum in the health/pharmaceutical and industrial labelling sectors. Finally, the Payment division continued its sustained development, driven by the manufacture of contactless payment cards and strong demand for metal cards using AmaTech's licensed technologies.

 

EBITDA1 margin of 8.6% in the 1st half of 2020/21 despite the impact of the health crisis

Over the past twelve months, Paragon ID has worked strenuously to adapt its cost structure to limit the impact of the decline in revenues on its profitability. Where possible, costs which had previously been fixed have been made variable, specifically through agreements with employee representatives in France on part-time working. Elsewhere, headcount has been reduced, resulting in overall Full Time Equivalent headcount declining by a third, from 750 to 500.

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