Page 12 - Paragon Annual Report 2

10 | Strategic report | CFO statement
Since the end of April 2017, the group controls 77.5% of ASK S.A., a Paris Euronext publicly listed company. This was achieved by Paragon Group moving our ID Division into ASK S.A. In this process, the Paragon ID division which carried very little debt, was independently valued at €108 million (12 times its prior year EBITDA), generating an €88 million equity increase in ASK S.A. in addition to a €20 million bond issuance in favour of Paragon Group. ASK S.A. will be rebranded as Paragon ID in
order to reflect the current Paragon control over the Company, as well as the company’s future public strategy within the Identification & Traceability sector.
The Group also controls 81.3% of Service Point Solutions S.A., a company relisted in December 2016 on the Madrid stock exchange. Service Point Solutions S.A. now enjoys a clean balance sheet with €387m of deferred tax losses, making Service Point Solutions S.A. another Paragon Group premium platform for growth.
Sales
€ millions
Underlying EBITDA*
EBITDA
€ millions
€ millions
Laurent T Salmon
Chief Financial Officer
41 (Proforma 2017)
28
41 (Proforma 2017)
31
642 (Proforma 2017)
442
24
20
20
315
2014 2015 2016
2017
2014
2015 2016 2017
178,351
78,449 59,837 26,887 13,178
4,773
8,405
64
– (806) (894)
13,178
(3,853)
2014 2015 2016 2017
Consolidated income statement
SALES
Material costs Payroll
Other operating costs EBITDA*
Depreciation and amortisation
EBIT/Operating profit
Gain/(loss) on assets disposal
Share of equity accounted investments and dividend income
Net finance costs
Income tax (charge)/credit
Profit for the year
EBITDA*
Exceptional net (gains)/losses
Underlying EBITDA*
15
13
178
9
2014
6,769
2015
20,304
9,618
(1,996)
(468)
7,042
2016
68,139
20,133
7,908
(3,107)
1,397
20,133
10
2017
€000
€000
315,337
130,767
117,964
46,302
€000
400,439
171,678
140,489
€000
442,187
188,822
156,151
66,465
30,749
10,686
12,225
12,748
18,001
(126)
14
539
155
(4,544)
(1,525)
30,749
89
20,304
6,747
12,176
(4,923)
4,165
(3,029)
9,325
15,381
24,298
27,720
* EBIT,EBITDAandunderlyingEBIT/EBITDAaredefinedinNote2(s)onpage72
Paragon Group Limited – 05258175
400