Strong cash flow for the quarter
Second quarter
- Net sales increased during the second quarter by 0,4 % to 50,7 MSEK (50,5)
- Result before depreciation (EBITDA) for the second quarter amounted to 3,4 MSEK (5,2), corresponding to a margin of 6,7% (10,3)
- Net result after tax was 0,8 MSEK (4,1)
- Result per share was 0,00 (0,02)
- Cash flow from the business for the period was 11,6 MSEK (4,3)
First half year
- Net sales increased during the period by 16,3% to 107,7 MSEK (92,6)
- The result (EBITDA) was 8,6 MSEK (10,0), corresponding to a margin of 8,0% (10,8)
- Result after tax was 3,7 MSEK (7,1)
- Result per share was 0,02 (0,04)
- Cash flow from the business was 8,5 MSEK (11,6)
Comments by the CEO
A large turnaround project has been conducted during the quarter, despite this we show a strong cash flow and an acceptable result.
Balogh has had a good quarter with sales in line with budget and a result somewhat over budget. We have continued to trim and change in the organization and from September we expect personnel costs to decrease further with another 1,5 MSEK on an annual basis. With a cost-efficient organization we should continue to deliver good profits even with lower volumes and we will for the future focus on strengthening the sales organization with more employees.
TagMaster has had a quarter in line with expectations and continued with more work in development of our new products for toll roads which are expected to be ready during Q4. The American market has continued well but with some slowdown during the end of the quarter. The Indian market has been reluctant, waiting for our new toll road products. TagMaster has started the launch of CA Traffic products in the Nordic markets and medium term we see a good growth for us in these markets, especially handling bicycle flows.
Our two English businesses, CitySync and CA Traffic have during the quarter delivered below plan and we have therefore worked more with the costs and synergies between the companies. We have during the quarter reduced personnel and we estimate cost reductions of around 3,5 MSEK annually to get full effect during Q3. We will also in England reinvest some of the cost savings in increased sales resources to better take care of future business opportunities. We see many exciting projects and we see more cities starting to look at ANPR systems to handle environmental zones, e g to classify different type of cars and to estimate pollution risk. Our core competence (ANPR) in algorithm development and in neural networks (AI) fit very well for this specific type of future projects.
Magsys has continued the launch of CA Traffics products in the French market and with good interest and we now start to test CitySyncs new ANPR products to monitor traffic flows in different places in France. Both CA Traffic and CitySync build together with Magsys solutions from our different products and synergies are developed continuously.
Both TagMaster and Balogh have had Rail businesses somewhat over budget during the quarter. We do, however, see a lower level for the full year compared to last year, which was an exceptionally strong year for our rail sales. Balogh has in small scale started deliveries of its new SIL4 product platform and TagMaster has during the quarter received business on its new RailTag from the London Underground project.
We have come very far with the integration work for our acquisitions, but like always we still have work to do and it is worth mentioning that the variation could be significant between quarters and years since among others our Rail business is volatile.
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 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 13, 2018.
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 and Magsys 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. www.tagmaster.com
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