paragon - Seeking sustainable growth

While Q319 results confirm the anticipated issues in Electromobility (Voltabox), with a more robust performance from the automotive segments (Electronics and Mechanics), there are signs that management is addressing the shortcomings. Indeed, some more positive elements are evident at this early stage, notably the trade receivables reduction as planned. A more prudent view of growth with stronger profitability and positive cash flow is indicated by initial FY20 guidance. The challenge now is to rebuild confidence in the investment, with a focus on reducing costs, improving operational performance and executing to plan.