ID Data to go under administration
The company has run out of funding and has failed to raise cash from investors.ID Data has been threatened with a winding up order by the Inland Revenue aftera missed tax payment. ID Data owes about GBP 1 million (EUR 1.3 million) in backtaxes.
In August, ID Data announced it was seeking to raise between GBP 2 and 3 million(EUR 2.6 to 3.9 million), via the issue of debt, equity or a combination of thetwo, in order to meet its short term working capital and debt fundingrequirements and fund future expansion. In the interim period the Companyfunding is being supported by an additional GBP 1 million secured credit lineprovided by the Company's CEO, Peter Cox, who owns 10% of ID Data, togetherwith credit from a non trade creditor.
In recent months, ID Data has been frustrated in its efforts to raise money frominvestors because of difficult stock market conditions and has instead focused onexploring a sale of its operating businesses. It said a number of internationalcompanies had expressed an interest in acquiring the business of ID Data Ltd andits CardBASE subsidiary.
The supplier has begun to seek buyers and many international businesses haveexpressed an interest in purchasing ID Data already. Earlier this year the groupmanaged to sell its credEcard pre-paid card unit to Contis Group for GBP 2.2million (EUR 2.8 million) (cf. Smart Insights #08-14).
Trading in the company's shares have been suspended since 25 September afterthe vendor failed to complete the audit of its accounts for the year ended 31March 2008 in time.
"We are continuing our discussions with current investors by offering the marketa series of investment options. We are also hopeful of attracting new investorsand completing our funding during October 2008, whilst reviewing all options",said Peter Cox, group CEO and chairman, ID Data and CEO of ID Data Limited.The company, which also provides British Post Office benefit cards, is a front-runner to win a contract for the British Government's ID cards scheme (cf. SI #08-42). ID Data, founded in 1988, is one of the well known card suppliers in Europeand is the largest supplier of smart cards to Government departments in the UK.
Thanks to an aggressive acquisition policy over the last few years, the ID DataGroup now includes:
- ID Data Limited, manufacturer of card products and associated services to
the government, financial, security and retails sectors,
- CardBASE, solutions provider for multi-application smart card management
and electronic purse systems on a global platform,
- Aris ID, based in Poland this joint venture between Argo cards, Ortis and ID
Data is to initially service the developing Eastern Europe markets and providegreater capacity for ID Data's card manufacture,
- Tti Card Technology, a joint venture by ID Data (43%), Toshiba Corporation
(43%) and Toppan Printing Company (14%) providing development, supportand market solutions for all smart card schemes,
- Digital Locksmiths, which provides consultancy, technical support and
development services for smartcard related projects, the ID Data Group plcowns a 50% stake in Digital Locksmith.