Record 3rd quarter results 2022/23

Double digit growth across the Company’s main activities as at 31 March 2023

Transport & Smart Cities (36% of revenues in the first nine months of the financial year 2022/23) continues to post strong growth with revenues increasing by more than +58% vs prior year and increasing from one quarter to the next (€15.7m in Q1, €16.3m in Q2 and €18,5m in Q3). This growth is largely due to the continuing return of commuters to urban transport systems, the success of the acquisition of EDM Technology in the United States and the impact of inflationary price increases passed-on to customers. The company’s digital mobile ticketing and Account-Based-Ticketing offers continue to evolve and to generate new sources of recurring revenues, albeit at rates which are lower than originally anticipated.

In Track & Trace and Brand Protection (34% of revenues in the nine months to 31 March 2023), growth over prior year reached +49%. Activity continued to be particularly strong in the aviation sector. However, growth in the strategically important area of RTLS (Real-Time-Locating-Systems) was delayed by unavailability of electronic components in this period and the volume of RFID inlays sold into the Retail sector remains at around 50% of that anticipated, due to the uncertain economic environment.

The Payment activity (18% of revenues in the first nine months of 2022/23) posted growth of +20% over the nine months, coming from the traditional gift, loyalty and payment cards, from sales of specialist RFID components and from royalties for Amatech’s unique technologies in contactless metal payment cards. Sales of Paragon ID’s own-manufactured metal cards have now begun but currently provide only a small contribution to revenue.

In e-ID (12% of revenues for the first nine months of 2022/23), growth accelerated strongly in the third quarter of the financial year with significant shipments of polycarbonate-based passport data-pages and identity cards. Growth over the nine-month period was +179%. As previously announced, these deliveries arise from major orders for polycarbonate products which should result in tens of millions in new revenues over the next two financial years.

Targeted growth for year to 30 June 2023 revised to more than €185m, representing an annual growth rate of over +40%

The excellent performances to date in Mass Transit & Smart Cities, Track & Trace and Brand Protection and Payment, combined with the ramp-up of production of the polycarbonate e-ID products, position the Company to end the financial year 2022/23 well ahead of its annual plan. At current trading rhythms, Paragon ID should complete the financial year with total consolidated revenues in excess of €185m, some +40% higher than the €130,8m posted last year.