ID Data costs, losses and turnover on the rise
02 December 2004 | 3379 views | 0
UK smart card systems vendor ID Data is reporting an 86% rise in first half sales but says operating losses increased to £1.9 million after losses from acquisitions and discontinued operations.
AIM-listed ID Data says the rise in turnover from £5.4 million to £10.2 million reflects the acquisition of Mids & Horsey Ltd in March 2004 and subsequent contract wins during the period.
The increase in business coincided with the closure of the firm's Lewes plant and moving work to sites in Corby and Petersfield. The company incurred some £800,000 in higher payroll and outsourcing charges due to disruption throughout the period, but says under normal circumstances the increase in sales would have shown improvement in the operating result.
The company's net debt increased from £3.3 million to £5.9 million during the period.
ID Data also recorded an exceptional loss of £633,000 with closure of its OneEighty Software business - which supplied Java-based systems - in October.
But banking and financial sector sales are up 135% for the six months ending 30 September 2004, helped by major contract wins with Citibank and GE Capital. The firm also securd an extension to its existing Post Office Account Card contract to 2011.
The vendor says retail card sales grew 154% in the period, helped by contracts for loyalty and gift cards. The firm also secured loyalty card contract renewals with Tesco and Nectar.
The firm acquired Dublin's CardBase Technologies in June this year in a share deal worth EUR3.42 million, delivering technology in card management, e-purse applications and public key infrastructure (PKI) solutions.
Michael Blackburn, chairman of ID Datam says: "The introduction of Chip and PIN smart cards in banking is having a positive effect on our revenues and reinforces the decision to purchase CardBase Technologies Limited."
Looking ahead, the firm reports a visible sales pipeline to March 2005 of £4.8 million and also sees an opportunity for increased business from the UK Government's plans to introduce a national ID card scheme.