Disposal of subsidiary and trading update

    RNS Number : 7384K
  ID Data Group PLC
  24 December 2008
   


    24 December 2008

    ID Data Group plc
    ("ID Data" or the "Company")

    Disposal of subsidiary and trading update

    ID Data Group plc (AIM: IDD), the smart card and card solutions group, today announces that it has signed an agreement to sell the
intellectual property, equipment and business of its Irish trading subsidiary CardBASE Technologies Ltd ("CardBASE") for EUR2.25 million in
cash to Sagem Securite, a subsidiary of the SAFRAN Group of France.  The transaction is expected to complete on or before 16 January 2009.

    ID Data has previously announced that it has been seeking funds from investors and, in parallel, pursuing the possible sale of its
operating businesses in order to meet its short term working capital and debt funding requirements. The sale of the business and assets of
CardBASE will assist the group in meeting its financial obligations (including the non-group liabilities of CardBASE itself which it is
estimated will be approximately EUR0.65 million at completion) whilst the Administrators of ID Data Limited seek to complete the sale of its
business and assets.  A number of international companies have expressed an interest in acquiring the business of ID Data Limited, but to
date no agreement has been reached regarding a disposal and, in current market conditions, there can be no certainty as to whether a
disposal will be successfully completed.

    As reported previously, the Company has made significant progress towards profitability over the last year and ID Data Limited is
currently successfully delivering one of the world's largest Multos card implementations on behalf of Buypass of Norway with trading during
the period of administration being EBITDA positive to date.

    Peter Cox, ID Data's Group CEO said:

    "The disposal of CardBASE will assist the Group in the short term to meet its obligations, but the current economic climate has meant
that the disposal of ID Data Limited has taken longer than anticipated due to the general nervousness of buyers who are finding their core
business activities under pressure and thus are reluctant to embark on new ventures.

    As ID Data's CEO and a substantial shareholder, I am now concerned that, in the absence of a successful sale of ID Data Limited, the
shareholders of ID Data Group plc could be facing a significant fall in value of shareholder funds.

    Your Board is looking at possible opportunities for the assets left under our control, being significant tax losses in the parent
company and in CardBASE in Ireland. These tax losses may well add value back to the group in time and could be very attractive to a company
in a similar sector seeking a listing where the losses might be utilised.

    Following completion of the disposal of the business and assets of CardBASE, we will move forward to finalising the accounts for the
Group for the periods ended 31 March 2008 and 30 September 2008.  These accounts will demonstrate the progress made by the Group towards
delivering the expected upturn in business and resultant bottom line improvement prior to its inability to raise new shareholder funds in
the current credit crunch environment.

    The Board will keep you informed as to progress on the potential disposal of ID Data Limited and the overall financial position of the
group."

    Trading in the Company's shares on AIM remains suspended.


    -Ends-

    For further information, please contact:

    ID Data Group plc
    Peter Cox, Chief Executive
    [e-mail] 
    Tel: [phone]

    Smith & Williamson Corporate Finance Limited
    Azhic Basirov / David Jones
    Tel: [phone]

    Media Enquiries
    Abchurch
    Chris Lane / Joanne Shears
    [e-mail]
    Tel: [phone]



    About ID Data

    ID Data is a fully accredited Visa and MasterCard card producer and card processor with its high security bank card capabilities based
in Petersfield, England. The Company has won major acclaim for its deliverables in the touch and go payments sector, plus is one of the few
"Multos" issuing partners in the world, where it can develop and deliver multi application technology using the Multos platform.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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