Q2_2025_ENG

Inlägget Interim report April to June 2025 dök först upp på Investor relations TagMaster.

Q2 2024 Eng

Inlägget Interim report January to June 2024 dök först upp på Investor relations TagMaster.

Press release Sweden, Stockholm, July 14,  2023

Record results for TagMaster

April-June 2023

• Net sales increased during the second quarter by 11,6 % to 98,2 MSEK (87,9). The organic and currency adjusted growth amounted to 6,2 %.
• Adjusted EBITDA increased during the second quarter by 95,4 % and amounted to 15,7 MSEK (8,0) corresponding to an adjusted EBITDA margin by 15,9 % (9,1).
• Operating profit was 7,7 MSEK (0,9), corresponding to an operating margin of 7,9 % (1,0).
• Profit/loss for the quarter was 6,3 MSEK (-0,7).
• Result per share basic and diluted was 0,43 SEK (-0,05).
• Cash flow from operating activities for the period was 5,4 MSEK (11,3).

January-June 2023

• Net sales increased during the first half year by 15,0 % to 192,6 MSEK (167,5). The organic and currency adjusted growth amounted to 9,0 %.
• Adjusted EBITDA increased during the first half year by 232,5 % and amounted to 23,5 MSEK (7,1) corresponding to an adjusted EBITDA margin by 12,2 % (4,2).
• Operating profit/loss was 7,8 MSEK (-7,0), corresponding to an operating margin of 4,0 % (-4,2).
• Profit/loss for the period was 6,6 MSEK (-9,3).
• Result per share basic and diluted was 0,45 SEK (-0,64).
• Cash flow from operating activities for the period was 21,0 MSEK (8,7). 

Comments by the CEO

The second quarter of the year offered a very positive development for TagMaster with increasing demand for our solutions in combination with reduced cost pressure. The group’s sales increased both in Europe and in the US with an average increase of almost 12 percent compared to the second quarter of 2022, while we increased the gross margin to 71.6 percent. All in all, this means that we delivered a record result during the quarter.

During the quarter, we have seen a continued improvement in the delivery situation for critical components and semiconductors, which continued to improve our delivery capability. However, we also had costs for purchases on the spot market during the second quarter, which is explained by the fact that previously ordered components were delivered during the quarter. Although we were still affected by some cost increases we managed to increase our gross margin by just over 1.2 percentage points to 71.6 percent during the quarter, due to price adjustments towards customers, internal efficiency and a favorable product mix. The move of our production for the US market from Mexico to Oakland, California, was completed during the quarter. That means we meet the Buy America requirements of the 2021 Infrastructure Investment and Jobs Act, which gives us an advantage in the US market.

During the quarter, we continued to invest in the group’s joint sales organization and further integrated our operations. By building ONE TagMaster, we simplify and speed up processes with the aim of being able to better scale our commercial offers within our various sales units. Concretely, it is about integrating our CRM systems and our marketing, developing our sales efforts and spending more time with our prospects and customers both digitally and physically.

After completing the efficiency program, our latest acquisition, Citilog, showed continued growth in the quarter with good profitability. During the quarter, Citilog launched an update to its automatic incident management system for tunnels, bridges and highways, with additional modules for pedestrian recognition, among other things. The system is based on AI and Deep learning.

During the period, we have continued to invest in technology leadership within our focus areas and develop more complete solutions that give our offer increased competitiveness. The focus is increasingly directed towards solutions that contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role. We also see that our investment in energy-saving sensor systems, where most of our solutions can be powered by solar energy and batteries, as well as the simplicity of the sensor systems, configuration via tablet or mobile, creates more business opportunities.

The group’s turnover during the second quarter amounted to SEK 98.2 million, which is an increase of 11.6 percent compared to the same period in 2022. The quarter’s organic turnover change, with adjustment for exchange rate effects of SEK 4.7 million, amounted to SEK 5.5 million corresponding to an increase of 6.2 percent. The Traffic Solutions business amounted to SEK 83 million, which is an increase of approximately 5 percent compared to the corresponding quarter in 2022. During the quarter, Traffic Solutions accounted for 84 percent of sales, while Rail Solutions accounted for 16 percent.

The gross margin landed at 71.6 percent with an adjusted EBITDA result of SEK 15.6 million, which corresponds to an adjusted EBITDA margin of 15.9 percent. Cash flow from current operations amounted to SEK 5.4 million and the group’s solvency ratio was 63.9 percent at the end of the period.

Our stock has increased sequentially during the quarter by approximately 18 percent as a result of the investment in maintaining a high level of service towards our customers and to manage imbalances in the delivery supply chain. Accounts receivable have increased sequentially during the quarter by approximately 9 percent but are at the same level as the same period in 2022. The work to reduce working capital has continued focus.

Today, TagMaster is well positioned in a market with long-term good conditions for growth and good profitability, and we are determined to continue to make TagMaster a stronger and more resilient company while aiming for a higher growth curve. The fact that we work to improve the traffic environment in cities and metropolitan areas around the world puts us in a very good position considering the massive investment packages that have been launched in Europe and the USA and which are largely focused on green investments.

Jonas Svensson

CEO

Reporting

During the business year 2023 TagMaster will report at the following dates:

October 31, 2023:                            Interim report third quarter 2023

February 2, 2024:                             Earnings release 2023

This report and previous reports and press releases are found at the company home page https://www.tagmaster.com.

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. CET on July 14, 2023.

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has subsidiaries in England, France and US and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA.

Eng_Q2_2023

Inlägget Interim report January to June 2023 dök först upp på Investor relations TagMaster.

Press release Sweden, Stockholm, July 14,  2023

Record results for TagMaster

April-June 2023

• Net sales increased during the second quarter by 11,6 % to 98,2 MSEK (87,9). The organic and currency adjusted growth amounted to 6,2 %.
• Adjusted EBITDA increased during the second quarter by 95,4 % and amounted to 15,7 MSEK (8,0) corresponding to an adjusted EBITDA margin by 15,9 % (9,1).
• Operating profit was 7,7 MSEK (0,9), corresponding to an operating margin of 7,9 % (1,0).
• Profit/loss for the quarter was 6,3 MSEK (-0,7).
• Result per share basic and diluted was 0,43 SEK (-0,05).
• Cash flow from operating activities for the period was 5,4 MSEK (11,3).

January-June 2023

• Net sales increased during the first half year by 15,0 % to 192,6 MSEK (167,5). The organic and currency adjusted growth amounted to 9,0 %.
• Adjusted EBITDA increased during the first half year by 232,5 % and amounted to 23,5 MSEK (7,1) corresponding to an adjusted EBITDA margin by 12,2 % (4,2).
• Operating profit/loss was 7,8 MSEK (-7,0), corresponding to an operating margin of 4,0 % (-4,2).
• Profit/loss for the period was 6,6 MSEK (-9,3).
• Result per share basic and diluted was 0,45 SEK (-0,64).
• Cash flow from operating activities for the period was 21,0 MSEK (8,7). 

Comments by the CEO

The second quarter of the year offered a very positive development for TagMaster with increasing demand for our solutions in combination with reduced cost pressure. The group’s sales increased both in Europe and in the US with an average increase of almost 12 percent compared to the second quarter of 2022, while we increased the gross margin to 71.6 percent. All in all, this means that we delivered a record result during the quarter.

During the quarter, we have seen a continued improvement in the delivery situation for critical components and semiconductors, which continued to improve our delivery capability. However, we also had costs for purchases on the spot market during the second quarter, which is explained by the fact that previously ordered components were delivered during the quarter. Although we were still affected by some cost increases we managed to increase our gross margin by just over 1.2 percentage points to 71.6 percent during the quarter, due to price adjustments towards customers, internal efficiency and a favorable product mix. The move of our production for the US market from Mexico to Oakland, California, was completed during the quarter. That means we meet the Buy America requirements of the 2021 Infrastructure Investment and Jobs Act, which gives us an advantage in the US market.

During the quarter, we continued to invest in the group’s joint sales organization and further integrated our operations. By building ONE TagMaster, we simplify and speed up processes with the aim of being able to better scale our commercial offers within our various sales units. Concretely, it is about integrating our CRM systems and our marketing, developing our sales efforts and spending more time with our prospects and customers both digitally and physically.

After completing the efficiency program, our latest acquisition, Citilog, showed continued growth in the quarter with good profitability. During the quarter, Citilog launched an update to its automatic incident management system for tunnels, bridges and highways, with additional modules for pedestrian recognition, among other things. The system is based on AI and Deep learning.

During the period, we have continued to invest in technology leadership within our focus areas and develop more complete solutions that give our offer increased competitiveness. The focus is increasingly directed towards solutions that contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role. We also see that our investment in energy-saving sensor systems, where most of our solutions can be powered by solar energy and batteries, as well as the simplicity of the sensor systems, configuration via tablet or mobile, creates more business opportunities.

The group’s turnover during the second quarter amounted to SEK 98.2 million, which is an increase of 11.6 percent compared to the same period in 2022. The quarter’s organic turnover change, with adjustment for exchange rate effects of SEK 4.7 million, amounted to SEK 5.5 million corresponding to an increase of 6.2 percent. The Traffic Solutions business amounted to SEK 83 million, which is an increase of approximately 5 percent compared to the corresponding quarter in 2022. During the quarter, Traffic Solutions accounted for 84 percent of sales, while Rail Solutions accounted for 16 percent.

The gross margin landed at 71.6 percent with an adjusted EBITDA result of SEK 15.6 million, which corresponds to an adjusted EBITDA margin of 15.9 percent. Cash flow from current operations amounted to SEK 5.4 million and the group’s solvency ratio was 63.9 percent at the end of the period.

Our stock has increased sequentially during the quarter by approximately 18 percent as a result of the investment in maintaining a high level of service towards our customers and to manage imbalances in the delivery supply chain. Accounts receivable have increased sequentially during the quarter by approximately 9 percent but are at the same level as the same period in 2022. The work to reduce working capital has continued focus.

Today, TagMaster is well positioned in a market with long-term good conditions for growth and good profitability, and we are determined to continue to make TagMaster a stronger and more resilient company while aiming for a higher growth curve. The fact that we work to improve the traffic environment in cities and metropolitan areas around the world puts us in a very good position considering the massive investment packages that have been launched in Europe and the USA and which are largely focused on green investments.

Jonas Svensson

CEO

Reporting

During the business year 2023 TagMaster will report at the following dates:

October 31, 2023:                            Interim report third quarter 2023

February 2, 2024:                             Earnings release 2023

This report and previous reports and press releases are found at the company home page https://www.tagmaster.com.

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.00 a.m. CET on July 14, 2023.

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has subsidiaries in England, France and US and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA.

SV_Q2_2023

Eng_Q2_2023

Inlägget Interim report January to June 2023 dök först upp på Investor relations TagMaster.

Press release, Sweden, Stockholm, July 15, 2022

Stable demand and improved gross margin despite continued disruptions in the supply chain

Second quarter 2022

• Net sales decreased during the second quarter by 1,1% to 87,9 MSEK (88,9). Currency translations had a positive effect of 5,4 MSEK on net sales.
• Adjusted EBITDA decreased during the second quarter by 24,8,5% to 8,0 MSEK (10,7), corresponding to an adjusted EBITDA margin by 9,1 % (12,0)
• Operating profit was 0,9 MSEK (4,8) which correspond to operating margin of 1,0% (5,3)
• Profit for the quarter was -0,7 MSEK (4,0)
• Result per share was -0,05 (0,27) SEK
• Cash flow from operating activities for the period was 11,3 MSEK (14,4) 

First half year 2022

• Net sales increased during the first half year by 2,5% to 167,5 MSEK (163,3). Currency translations had a positive effect of 11,1 MSEK on net sales.
• Adjusted EBITDA decreased during the first half year by 65,5% to 7,1 MSEK (20,5), corresponding to an adjusted EBITDA margin by 4,2% (12,6)
• Operating profit/loss was -7,0 MSEK (9,6) which correspond to operating margin of -4,2% (5,9)
• Profit for the period was -9,3 MSEK (8,4)
• Result per share was -0,64 (0,58) SEK
• Cash flow from operating activities for the period was 8,7 MSEK (17,8) 

Comments by the CEO

Despite major global challenges, we managed to improve our already good gross margin during the second quarter, which is significantly higher than it was during the second quarter last year. Demand for our solutions is stable and in US for example revenues increased by over 6 percent in local currency corresponding to 24 percent in SEK compared with the same period last year. Like so many other technology companies, we were affected by a continued shortage of components. We were also affected by a deficiency of capacity at our main European supplier. We have been able to handle these imbalances in a good way through great flexibility and with price increases towards our customers.

During the quarter, we were affected by cost increases for both electronic components and input goods. We have therefore continued to increase our purchases via the spot market to be able to keep our commitments to our customers. With price increases to customers and internal efficiency, we managed to reach a gross margin that is significantly higher compared to the second quarter of 2021. Given the challenging purchasing situation and deficiency of capacity in our outsourced production, we are very pleased that we continue to have such a good gross margin. This shows that our offer can withstand price increases without losing attractiveness.

We estimate that the loss in sales of delayed deliveries due to component shortages and capacity shortages corresponded to approximately 5 percent of sales during the quarter, which is slightly less than in previous quarters. We are prepared for continued challenges the coming quarters and we will continue to work with price compensation for the cost increases we suffer.

During the period, we continued to invest in technology leadership in our areas and developed more complete solutions that give our offering increased competitiveness and bring us up in the value chain. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role.

During the quarter, our work to achieve profitability in our latest acquisition Citilog was intensified and we reached break-even during the quarter, which is a good step forward. Citilog’s strategy is to focus on the areas where the company is a world leader such as Incident Management and the business model is adjusted towards less risk. We continue the work and assess that profitability at the same level as the other TagMaster Group will be reached at the beginning of next year.

Rail Solutions’ sales has been hesitant for most of the quarter, but during the latter part of the quarter we have seen an increased level of activity and increased intake of orders.

The Group’s sales during the second quarter amounted to SEK 87.9 million, which is a decrease of 1.1 percent compared with the same period in 2021. Our Traffic Solutions business amounted to SEK 78.2 million, which is an increase of 13 percent compared to the corresponding period 2021. During the quarter, Traffic Solutions accounted for 89 percent of sales, while Rail Solutions accounted for 11 percent.

The quarter shows a gross margin of 70.4 percent with an adjusted EBITDA result of SEK 8.0 million, which corresponds to an adjusted EBITDA margin of 9.1 percent. Cash flow from operating activities amounted to SEK 11.3 million and the Group’s solvency ratio was 55 percent at the end of the period. Efforts to reduce working capital have had continued focus and accounts receivable have decreased compared with the corresponding quarter in 2021. Our stock increased during the quarter by approximately 12 percent due to our effort to always maintain a high level of service to our customers and to be able to deliver as well in times of severe delivery disruptions.

Today, TagMaster is well positioned in a market with long-term good conditions for growth and good profitability, and we are determined to continue to make TagMaster a stronger and more resilient company while reaching a higher growth curve. The fact that we work to improve the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are being launched in Europe and the USA and which are largely focused on green investments.

The strategy and value-creating potential have not changed due to the short-term limitations in the supply chain and our investments in growth through innovation, commercial focus and acquisitions mean that we have a positive view of the company’s development for the coming years.

Jonas Svensson

CEO

Reporting

During the business year 2022 TagMaster will report at the following dates:

October 27, 2022:                            Interim report third quarter 2022

February 2, 2023:                             Earnings release 2022

This report and previous reports and press releases are found at the company home page www.tagmaster.com

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 15, 2022.

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has daughter companies in England, France, US and Sweden and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA, telephone +46852800399, E-mail: info@fnca.se www.tagmaster.com

Eng_Q2_2022

Inlägget Interim report January to June 2022 dök först upp på Investor relations TagMaster.

Press release, Sweden, Stockholm, July 15, 2022

Stable demand and improved gross margin despite continued disruptions in the supply chain

Second quarter 2022

• Net sales decreased during the second quarter by 1,1% to 87,9 MSEK (88,9). Currency translations had a positive effect of 5,4 MSEK on net sales.
• Adjusted EBITDA decreased during the second quarter by 24,8,5% to 8,0 MSEK (10,7), corresponding to an adjusted EBITDA margin by 9,1 % (12,0)
• Operating profit was 0,9 MSEK (4,8) which correspond to operating margin of 1,0% (5,3)
• Profit for the quarter was -0,7 MSEK (4,0)
• Result per share was -0,05 (0,27) SEK
• Cash flow from operating activities for the period was 11,3 MSEK (14,4) 

First half year 2022

• Net sales increased during the first half year by 2,5% to 167,5 MSEK (163,3). Currency translations had a positive effect of 11,1 MSEK on net sales.
• Adjusted EBITDA decreased during the first half year by 65,5% to 7,1 MSEK (20,5), corresponding to an adjusted EBITDA margin by 4,2% (12,6)
• Operating profit/loss was -7,0 MSEK (9,6) which correspond to operating margin of -4,2% (5,9)
• Profit for the period was -9,3 MSEK (8,4)
• Result per share was -0,64 (0,58) SEK
• Cash flow from operating activities for the period was 8,7 MSEK (17,8) 

Comments by the CEO

Despite major global challenges, we managed to improve our already good gross margin during the second quarter, which is significantly higher than it was during the second quarter last year. Demand for our solutions is stable and in US for example revenues increased by over 6 percent in local currency corresponding to 24 percent in SEK compared with the same period last year. Like so many other technology companies, we were affected by a continued shortage of components. We were also affected by a deficiency of capacity at our main European supplier. We have been able to handle these imbalances in a good way through great flexibility and with price increases towards our customers.

During the quarter, we were affected by cost increases for both electronic components and input goods. We have therefore continued to increase our purchases via the spot market to be able to keep our commitments to our customers. With price increases to customers and internal efficiency, we managed to reach a gross margin that is significantly higher compared to the second quarter of 2021. Given the challenging purchasing situation and deficiency of capacity in our outsourced production, we are very pleased that we continue to have such a good gross margin. This shows that our offer can withstand price increases without losing attractiveness.

We estimate that the loss in sales of delayed deliveries due to component shortages and capacity shortages corresponded to approximately 5 percent of sales during the quarter, which is slightly less than in previous quarters. We are prepared for continued challenges the coming quarters and we will continue to work with price compensation for the cost increases we suffer.

During the period, we continued to invest in technology leadership in our areas and developed more complete solutions that give our offering increased competitiveness and bring us up in the value chain. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role.

During the quarter, our work to achieve profitability in our latest acquisition Citilog was intensified and we reached break-even during the quarter, which is a good step forward. Citilog’s strategy is to focus on the areas where the company is a world leader such as Incident Management and the business model is adjusted towards less risk. We continue the work and assess that profitability at the same level as the other TagMaster Group will be reached at the beginning of next year.

Rail Solutions’ sales has been hesitant for most of the quarter, but during the latter part of the quarter we have seen an increased level of activity and increased intake of orders.

The Group’s sales during the second quarter amounted to SEK 87.9 million, which is a decrease of 1.1 percent compared with the same period in 2021. Our Traffic Solutions business amounted to SEK 78.2 million, which is an increase of 13 percent compared to the corresponding period 2021. During the quarter, Traffic Solutions accounted for 89 percent of sales, while Rail Solutions accounted for 11 percent.

The quarter shows a gross margin of 70.4 percent with an adjusted EBITDA result of SEK 8.0 million, which corresponds to an adjusted EBITDA margin of 9.1 percent. Cash flow from operating activities amounted to SEK 11.3 million and the Group’s solvency ratio was 55 percent at the end of the period. Efforts to reduce working capital have had continued focus and accounts receivable have decreased compared with the corresponding quarter in 2021. Our stock increased during the quarter by approximately 12 percent due to our effort to always maintain a high level of service to our customers and to be able to deliver as well in times of severe delivery disruptions.

Today, TagMaster is well positioned in a market with long-term good conditions for growth and good profitability, and we are determined to continue to make TagMaster a stronger and more resilient company while reaching a higher growth curve. The fact that we work to improve the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are being launched in Europe and the USA and which are largely focused on green investments.

The strategy and value-creating potential have not changed due to the short-term limitations in the supply chain and our investments in growth through innovation, commercial focus and acquisitions mean that we have a positive view of the company’s development for the coming years.

Jonas Svensson

CEO

Reporting

During the business year 2022 TagMaster will report at the following dates:

October 27, 2022:                            Interim report third quarter 2022

February 2, 2023:                             Earnings release 2022

This report and previous reports and press releases are found at the company home page www.tagmaster.com

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 15, 2022.

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has daughter companies in England, France, US and Sweden and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA, telephone +46852800399, E-mail: info@fnca.se www.tagmaster.com

SV_Q2_2022

Eng_Q2_2022

Inlägget Interim report January to June 2022 dök först upp på Investor relations TagMaster.

Press release, Sweden, Stockholm, July 16, 2021

TagMaster shows record sales with improved results

Second quarter 2021

• Net sales increased during the second quarter by 29,2% to 88,9 MSEK (69,8)
• Adjusted EBITDA increased during the second quarter by 68,9% to 10,7 MSEK (6,3), corresponding to an adjusted EBITDA margin by 12,0% (9,2)
• Operating loss was 4,8 MSEK (-12,5) which correspond to operating margin of -5,3% (-18,2)
• Profit for the period was 4,0 MSEK (-12,4)
• Result per share was 0,27 (-0,85) SEK¹
• Cash flow from operating activities for the period was 14,4 MSEK (5,5)
• On April 30, 2021, TagMaster acquired Citilog SAS with a yearly turnover of approximately 5,8 M€
• At the Annual General Meeting on April 29, 2021, it was decided to carry through a reversed split of Series B shares 1:25. May 6 was the first day of trading after the reversed split. The number of Series B shares after the reversed split amounts to 14,647,526, which means a quota value of approximately 1,25 SEK per share.

First half year

• Net sales increased during the first half year by 10,6% to 163,3 MSEK (147,7)
• Adjusted EBITDA increased during the first half year by 55,3% to 20,5 MSEK (13,2), corresponding to an adjusted EBITDA margin by 12,6% (8,9)
• Operating profit/loss was 9,6 MSEK (-16,3) which correspond to operating margin of 5,8% (-11,1)
• Profit for the period was 8,4 MSEK (-21,1)
• Result per share was 0,58 (-1,44) SEK¹
• Cash flow from operating activities for the period was 17,8 MSEK (8,0)

¹Adjusted retroactively for the reversed split 1:25

Comments by the CEO

During the past quarter, a gradual opening has taken place in our main European markets. This has contributed to TagMaster being able to report the highest sales to date for a single quarter with a good EBITDA result. During the quarter, we continued to increase our investment in data solutions for Smart Cities based on advanced sensor technology. Through the acquisition of French Citilog in April, we have added additional expertise in AI and Deep learning. Our solutions contribute to the necessary transition to a more sustainable transport system, which gives us a very interesting position as the massive restart packages launched in Europe and the US are largely focused on green investments and investments in infrastructure.

With proactive and continuous actions to maintain a robust supply chain, we have so far been able to deal with the global shortage of semiconductors without excessive disruptions to customer deliveries. We expect accelerating, continued challenges in the quarters ahead and we will therefore proactively implement measures to limit the impact if necessary.

We continue to invest in technology leadership in the field of intelligent transportation systems (ITS) to further increase our competitiveness. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and Deep learning is crucial, which thus take us up in the value chain.

The acquisition of Citilog follows this logic and sharpens TagMaster’s offering on the technology side, but also adds value regarding synergies on the sales and customer side. In 1997, Citilog became first in the world to introduce a video-based system for automatic detection of traffic incidents. In 2019, Citilog introduced the first analysis management module for incident management based on Deep learning technology. Citilog today offers a broad portfolio of advanced algorithms, based on AI technology, that can be used as edge solutions or cloud-based solutions. Citilog focuses on three application areas – incident management, traffic efficiency and traffic statistics and has more than 45,000 cameras and sensors installed in over 60 countries worldwide.

The Group’s sales during the second quarter amounted to a record of SEK 88.9 million, which is an increase of 29.2 percent compared with the same period last year, of which organic growth accounted for 8.2 percent. Our Traffic Solutions business amounted to SEK 69.2 million, which is an increase of 19.5 percent compared with the corresponding period in 2020. In addition to the organic growth, the increase is explained by the acquisition of Citilog, which was completed on the end of April. During the quarter, Traffic Solutions accounted for 78 percent of sales, while Rail Solutions accounted for 22 percent.

The quarter shows a gross margin of 62.4 percent with an adjusted EBITDA result of SEK 10.7 million, which corresponds to an adjusted EBITDA margin of 12.0 percent. Cash flow from operating activities amounted to SEK 14.4 million with a solvency ratio of 49.4 percent. The measures taken to reduce working capital has continued to be successful and goods in stock decreased by approximately 10 percent during the quarter compared with the corresponding quarter in 2020.

TagMaster is today well positioned in a market with long-term favorable conditions for growth and good profitability. The fact that we work to improve and streamline the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are launched in Europe and the USA, which largely focus on green investments and investments in infrastructure. Our investments in growth through innovation, commercial focus and acquisitions means that we have a very positive view of the company’s development for the coming years.

Jonas Svensson

CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Reporting

During the business year 2021 TagMaster will report at the following dates:

October 27, 2021:                            Interim report third quarter 2021

February 3, 2022:                             Earnings release 2021

This report and previous reports and press releases are found at the company home page www.tagmaster.com

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 16, 2021. 

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has daughter companies in England, France, US and Sweden and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA, telephone +46852800399, E-mail: info@fnca.se www.tagmaster.com

Eng_Q2_2021_2

Inlägget Interim report January to June 2021 dök först upp på Investor relations TagMaster.

Press release, Sweden, Stockholm, July 16, 2021

TagMaster shows record sales with improved results

Second quarter 2021

• Net sales increased during the second quarter by 29,2% to 88,9 MSEK (69,8)
• Adjusted EBITDA increased during the second quarter by 68,9% to 10,7 MSEK (6,3), corresponding to an adjusted EBITDA margin by 12,0% (9,2)
• Operating loss was 4,8 MSEK (-12,5) which correspond to operating margin of -5,3% (-18,2)
• Profit for the period was 4,0 MSEK (-12,4)
• Result per share was 0,27 (-0,85) SEK¹
• Cash flow from operating activities for the period was 14,4 MSEK (5,5)
• On April 30, 2021, TagMaster acquired Citilog SAS with a yearly turnover of approximately 5,8 M€
• At the Annual General Meeting on April 29, 2021, it was decided to carry through a reversed split of Series B shares 1:25. May 6 was the first day of trading after the reversed split. The number of Series B shares after the reversed split amounts to 14,647,526, which means a quota value of approximately 1,25 SEK per share.

First half year

• Net sales increased during the first half year by 10,6% to 163,3 MSEK (147,7)
• Adjusted EBITDA increased during the first half year by 55,3% to 20,5 MSEK (13,2), corresponding to an adjusted EBITDA margin by 12,6% (8,9)
• Operating profit/loss was 9,6 MSEK (-16,3) which correspond to operating margin of 5,8% (-11,1)
• Profit for the period was 8,4 MSEK (-21,1)
• Result per share was 0,58 (-1,44) SEK¹
• Cash flow from operating activities for the period was 17,8 MSEK (8,0)

¹Adjusted retroactively for the reversed split 1:25

Comments by the CEO

During the past quarter, a gradual opening has taken place in our main European markets. This has contributed to TagMaster being able to report the highest sales to date for a single quarter with a good EBITDA result. During the quarter, we continued to increase our investment in data solutions for Smart Cities based on advanced sensor technology. Through the acquisition of French Citilog in April, we have added additional expertise in AI and Deep learning. Our solutions contribute to the necessary transition to a more sustainable transport system, which gives us a very interesting position as the massive restart packages launched in Europe and the US are largely focused on green investments and investments in infrastructure.

With proactive and continuous actions to maintain a robust supply chain, we have so far been able to deal with the global shortage of semiconductors without excessive disruptions to customer deliveries. We expect accelerating, continued challenges in the quarters ahead and we will therefore proactively implement measures to limit the impact if necessary.

We continue to invest in technology leadership in the field of intelligent transportation systems (ITS) to further increase our competitiveness. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and Deep learning is crucial, which thus take us up in the value chain.

The acquisition of Citilog follows this logic and sharpens TagMaster’s offering on the technology side, but also adds value regarding synergies on the sales and customer side. In 1997, Citilog became first in the world to introduce a video-based system for automatic detection of traffic incidents. In 2019, Citilog introduced the first analysis management module for incident management based on Deep learning technology. Citilog today offers a broad portfolio of advanced algorithms, based on AI technology, that can be used as edge solutions or cloud-based solutions. Citilog focuses on three application areas – incident management, traffic efficiency and traffic statistics and has more than 45,000 cameras and sensors installed in over 60 countries worldwide.

The Group’s sales during the second quarter amounted to a record of SEK 88.9 million, which is an increase of 29.2 percent compared with the same period last year, of which organic growth accounted for 8.2 percent. Our Traffic Solutions business amounted to SEK 69.2 million, which is an increase of 19.5 percent compared with the corresponding period in 2020. In addition to the organic growth, the increase is explained by the acquisition of Citilog, which was completed on the end of April. During the quarter, Traffic Solutions accounted for 78 percent of sales, while Rail Solutions accounted for 22 percent.

The quarter shows a gross margin of 62.4 percent with an adjusted EBITDA result of SEK 10.7 million, which corresponds to an adjusted EBITDA margin of 12.0 percent. Cash flow from operating activities amounted to SEK 14.4 million with a solvency ratio of 49.4 percent. The measures taken to reduce working capital has continued to be successful and goods in stock decreased by approximately 10 percent during the quarter compared with the corresponding quarter in 2020.

TagMaster is today well positioned in a market with long-term favorable conditions for growth and good profitability. The fact that we work to improve and streamline the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are launched in Europe and the USA, which largely focus on green investments and investments in infrastructure. Our investments in growth through innovation, commercial focus and acquisitions means that we have a very positive view of the company’s development for the coming years.

Jonas Svensson

CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Reporting

During the business year 2021 TagMaster will report at the following dates:

October 27, 2021:                            Interim report third quarter 2021

February 3, 2022:                             Earnings release 2021

This report and previous reports and press releases are found at the company home page www.tagmaster.com

For further information contact:

Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 16, 2021. 

About TagMaster

TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments – Segment Europe and Segment USA – with the trademarks TagMaster, Citilog and Sensys Networks – with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has daughter companies in England, France, US and Sweden and exports mostly to Europe, The Middle East, Asia and North America through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA, telephone +46852800399, E-mail: info@fnca.se www.tagmaster.com

Q2_2021

Eng_Q2_2021_2

Inlägget Interim report January to June 2021 dök först upp på Investor relations TagMaster.

TagMaster demonstrates profitable growth and starts program for increased resilience

Second quarter 2020

• Net sales increased during the second quarter by 29,5% to 68,8 MSEK (53,2)
• Adjusted EBITDA increased during the second quarter by 100,7% to 6,3 MSEK (3,1), corresponding to an adjusted EBITDA margin by 9,2% (5,9)
• Operating loss was -12,5 MSEK (-5,4) which correspond to operating margin of -18,2% (-10,2)
• Profit for the period was -12,4 MSEK (3,8)
• Result per share was -0,03 (-0,02)
• Cash flow from operating activities for the period was 5,5 MSEK (-2,3)
• As a long-term activity during the period a companywide efficiency program was initiated for the European part of the business. These long-term actions have led to onetime costs of around 9 MSEK during the second quarter of which most of it impacts the cash flow. The program is expected to result in a yearly cost saving of around 10 MSEK from the end of quarter 3 2020.

First half year

• Net sales increased during the first half year by 52,3% to 147,7 MSEK (97,0)
• Adjusted EBITDA increased during the first half year by 40,5% to 13,2 MSEK (9,4), corresponding to an adjusted EBITDA margin by 8,9% (9,7)
• Operating profit/loss was -16,3 MSEK (-1,2) which correspond to operating margin of -11,1% (-1,3)
• Profit for the period was -21,1 MSEK (-0,1)
• Result per share was -0,06 (-0,00)
• Cash flow from operating activities for the period was 8,0 MSEK (3,0)
• The Covid-19 pandemic has had a negative impact on turnover from mid-March and measures have been taken for all parts of the business to mitigate the effects of the corona virus.
• As of January 1, 2020, TagMaster has changed accounting principles from BFNAR 2012: 1 (K3) to IFRS. The effects of the transition are shown in Note 6 in the interim report.

Comments by the CEO

Covid-19 has challenged and influenced us in all ways, but it has not stopped us from keeping deliveries to our customers and to ensure long term financial stability. I am convinced that we together, employees and partners are rightly positioned now when the market is slowly turning upwards again.

During the whole quarter we have had lower activity caused by close down and restrictions in all our main markets.

We have during the quarter taken several actions to capacity adjust our business to the present conditions, among others by implementing the national support packages offered in different countries and also with additional cost adjustments. Most of our employees have since early April been part time laid off and they have worked 60-80% of normal time. This temporary short-term cost saving measures contributed to the resilience of the earnings development and reduced the overheads by 15% on the previous quarter.

As a long term action a companywide efficiency program was initiated for the European part of the business, with structural changes like reallocation of resources to new business opportunities and optimization of offices, as well as reduction of staff to adopt the business to a more permanent change of the future sales mix. TagMaster has taken a onetime cost of around 9 MSEK during the second quarter of which most has impacted the cash flow. The program is expected to result in a yearly cost saving of around 10 MSEK from the end of quarter 3 2020.

We, however, continue to invest in our technology leadership to further increase competitiveness. As an example we work on future solutions to handle an increased presence   of bicycles in cities. We have in the US (California and Indiana) started to test “Give Me Green”, a solution which through an APP gives cyclists way before at the traffic lights and which is based on Sensys Networks sensor technology and is combined with a cloud solution. Another example we launch in France is our sensor system for charging stations for electric cars enabling cities and regions to conveniently inform motorists which charging stations are available and where they are located.

To increase transparency and give a more clear view of TagMaster the Group has from quarter one 2020 chosen to show two business segments, Europe and US separated.

The total turnover for the Group during the second quarter was 68,3 MSEK, an increase of 29,5% compared to the corresponding quarter 2019. The increase is explained by the acquisition of the US Sensys Networks (Segment US) finalized in June 2019. The quarter shows a strong gross margin even if somewhat lower than earlier quarters of 63,6% and with an adjusted EBITDA result of 6,3 MSEK corresponding to an adjusted EBITDA margin of 9,2%. The cash flow from the business was still positive with +5,5 MSEK and solidity is good with 53,1%.

Our Traffic solution business was 84% of the business while Rail solution was 16%.

TagMaster is today well positions in a market with long term good prerequisites for growth and good profits. To work daily to improve the traffic environment in cities and urban areas around the world provide us with lots of energy to continue to work hard and targeted also in difficult times like these.

Jonas Svensson

CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Reporting

During the business year 2020 to 2021 TagMaster will report at the following dates:

3^rd quarter report                                                         October 22

Year-end report                                                           January 28, 2021

This as well as previous financial reports could be found at the company homepage www.tagmaster.com

For further information, please contact

Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 16, 2020. 

About TagMaster

TagMaster is an application driven technology company that designs and markets advanced sensor systems and solutions based on radio, radar, vision and wireless magnetic technology for demanding environments. Business areas include Traffic Solutions and Rail Solutions sold under the brands TagMaster and Sensys Networks with innovative mobility solutions in order to increase efficiency, security, convenience and to decrease environmental impact within Smart Cities. TagMaster has subsidiaries in UK, France and US and exports mainly to Europe, The Middle East, Asia and North America via a global network of partners and systems integrators. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on Nasdaq First North Growth Market in Stockholm, Sweden. TagMasters certified advisor is Erik Penser Bank phone +4684638300, E-mail: certifiedadviser@penser.se www.tagmaster.com

Release

Inlägget Interim report January to June 2020 dök först upp på Investor relations TagMaster.

Outlining the new TagMaster

Second quarter

• Net sales increased during the second quarter by 4,8 % to 53,2MSEK (50,7)
• Result before depreciation (EBITDA) for the second quarter amounted to 0,0 MSEK (3,4), corresponding to a margin of 0,0% (6,7)
• Net result after tax was -3,3 MSEK (0,8)
• Result per share was -0,01 (0,00)
• Cash flow from the business for the period was -0,2 MSEK (11,6)
• The acquisition of Sensys Networks was completed on June 13. The purchase price was USD 16 million on a debt and cash free basis with adjustment of net working capital as of the closing date against normalized net working capital. 
• Share capital increased by 5 534 530,50 SEK and the number of shares by 110 690 610 shares by a directed equity issue. An issue of equity with preferential rights for existing shareholders increased the share capital by 2 581 250 SEK by issuing 51 625 000 shares.

First half year

• Net sales increased during the period by 9,9% to 97,0 MSEK (107,7)
• The result (EBITDA) was 4,3 MSEK (8,6), corresponding to a margin of 4,4% (8,0)
• Result after tax was -2,8 MSEK (3,7)
• Result per share was -0,01 (0,02)
• Cash flow from the business was 3,2 MSEK (8,5)

Comments by the CEO

TagMaster has had a very exciting quarter, which has been much characterized by the acquisition of Sensys Networks, finalized on June 13. Through the acquisition we almost double our turnover and we also get a platform of our own in the US. We also receive a wider and deeper technology competence. Through the acquisition we achieve a higher organic growth potential and we become an even more interesting partner for building the smart cities of the future.

Sensys Networks offer a wireless platform used in traffic and parking solutions. More specific it is an end to end solution composed by sensors, edge gateways and a sophisticated cloud-based data management system (SNAPS) installed in hundreds of cities around the world. The system addresses the need to let information control to offer more efficient traffic and parking solutions.

Our total sales during the quarter has been higher than last year explained by that we include Sensys Networks’ figures for the last two weeks of the period. Adjusted for this, sales have been on the same level as last year, but with a higher gross margin. Costs have been temporarily higher for TagMaster as well as for Sensys Networks in connection with the acquisition, which ends up in a lower result.

Our British businesses, CA Traffic and CitySync, have had a quarter in line with Q1, but with somewhat lower margins depending on unfavorable product mix. We will finish the integration work (a common structure) during the second half of the year and we continue to strengthen our sales and marketing resources.

Our French businesses, Balogh, Magsys and Hikob have during the period altogether shown satisfactory results. Product deliveries of Baloghs new SIL 4 product platform have now started, but in a lower volume than planned. We have during the quarter had a somewhat higher cost level connected to the finalization of previous management changes. Also, in our French companies we bring the integration work one step further and merge legal units during the second half of the year. With an integrated business we look forward to a more powerful activity towards the exciting French market. In France we also continue recruitments to strengthen our sales and marketing resources.

Our integration work, of previously acquired businesses, is getting to an end and our now cost-efficient units could from now on focus on increasing sales. The integration work with Sensys Networks has already started and we see in a first step close cooperation in the European sales work.

Jonas Svensson

CEO

This as well as previous financial reports could be found at the company homepage www.tagmaster.com

For further information, please contact

Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com

This information is information that TagMaster AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8.30 a.m. CET on July 12, 2019.

About TagMaster

TagMaster is an application driven technology company that designs and markets advanced sensor systems and solutions based on radio & vision technology (RFID, Radar & ANPR) for demanding environments. Business areas include Traffic Solutions and Rail Solutions sold under the brands TagMaster, CitySync, Balogh, CA Traffic, Magsys and Sensys Networks with innovative mobility solutions in order to increase efficiency, security, convenience and to decrease environmental impact within Smart Cities. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, The Middle East, Asia and North America via a global network of partners and, systems integrators. TagMaster was founded in 1994 and has its headquarters in Stockholm. TagMaster is a public company and its shares are traded on First North stock exchange in Stockholm, Sweden. TagMasters certified advisor is Erik Penser Bank telephone +46 8 4638300, E-mail: certifiedadviser@penser.se 

Release

Release

Inlägget Interim report January to June 2019 dök först upp på Investor relations TagMaster.