Smart card firm sharpens the axe

12 April 2012

SMART card firm ID Data has warned staff to brace for job losses as it revealed plans to close one of its three factories. The company, which makes loyalty cards for Tesco and WH Smith, is hoping to save £1.5m a year through the shake-up, helping it break into profit by 2004.

Chief executive Peter Cox said all options were being reviewed and it was unclear how many jobs at the AIM-listed business would go. 'To become more cost effective we have to reduce the number of sites we have got. We are in the process of making that decision now,' he added.

ID Data can produce more than 60m magnetic-stripe and smart cards a year. It employs 269 staff at sites in Corby, Lewes and Coventry. A final decision on which plant will close is expected by September and Cox said capacity would be transferred to one of the other two plants.

The firm also posted pre-tax losses of £6.4m for the year ended March, from a £3.8m loss last time. It blamed weak demand for mobile phone SIM cards, the slow development of the smart card banking market and problems at telecoms equipment firm Marconi, a former top client. Sales rose just £200,000 to £17.9m despite continuing work with Tesco, the AA and Esso.

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