Regulated communication: Interim business progress report

Brussels - 13 November 2014 – Business growth levels seen during the first half of this year have continued into the third quarter. Within the Goods ID division, demand from postal operators and parcel delivery service providers are contributing to increased revenues in the Goods ID division. In particular, Swiss Post has commissioned Zetes to renew its mobile IT infrastructure and localize and maintain its estate.

Also in Goods ID, Zetes continues to promote its 6-solution specialization strategy and increasingly proposing business-specific solutions based on the MCL Mobility Platform™, thereby reducing investment costs and optimizing infrastructure availability for the customer. In this model, SaaS (software as a service) solutions spread revenue collection over the life of the proposed infrastructure for a fixed time period.

In People ID, a number of Build and Operate contracts are contributing to the division’s income. 2014 saw the start of new passport projects in Belgium and Gambia, in addition to existing contracts. A good product mix between Build and Operate and short-term contracts will enable the division to replicate the good results achieved during the first six months of this year in the second half. Zetes’ teams are working in Togo to prepare voter lists and are actively prospecting for new projects throughout the EMEA region.

In summary, 2014 marks a return of growth, both for the Goods ID division, where the standardization of solutions strategy is delivering its first returns in terms of earnings, and for the People ID division, where the combination of long and short-term contracts have created a secure revenue pipeline. With the majority of new Build and Operate contracts in People ID now up and running, investment levels during the second half can return to normal levels. During September and October, Zetes acquired an additional 56,233 of its own shares and now holds 257,709 (or 4.78%) (31 October 2014).

To conclude, for 2014 as a whole, Zetes reaffirms its earlier guidance for sales revenues and significantly better earnings per share than in 2013.

Financial calendar

  • Publication of annual results for 2014: 19 March 2015
  • Publication of the 2014 annual report: 27 April 2015
  • Annual general meeting: 27 May 2015
  • Half-year results 2015: 4 September 2015

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