Press release, Stockholm, Sweden, 24 January 2019
Traffic sales had a good growth during this year
Fourth quarter
- Net sales decreased during the fourth quarter by 23,4% to 44,1 MSEK (57,6)
- Result before depreciation (EBITDA) amounts to 0,9 MSEK (7,8), corresponding to a margin of 2,0% (13,5)
- Net result after tax was -0,5 MSEK (7,6)
- Result per share was 0,00 (0,04)
- Cash flow from the business for the period was 6,1 MSEK (4,7)
January – December
- Net sales were at the same level as previous year 195,6 MSEK (195,4)
- Result before depreciation (EBITDA) was 12,7 MSEK (21,8), corresponding to a margin of 6,5% (11,2)
- Net result after tax was 3,4 MSEK (17,1)
- Result per share was 0,02 (0,09)
- Cash flow from the business for the period was 13,0 MSEK (20,5)
- No dividend is proposed
Subsequent to the end of the reporting period
- TagMaster has initiated the process to investigate the possibilities of expanding the ownership base with a number of larger investors. The purpose is to speed up the established growth strategy i.e to grow through acquisitions within technology to Smart Cities.
Comments by the CEO
The Traffic sales has developed well during the period with a 15% growth and with a 26% growth for the whole year. Our sales during the quarter has been lower than last year explained by the rail sales being lower than last year when a major part of Baloghs rail sales occurred during the fourth quarter (50% of year sales). The total negative “rail effect” during the quarter is estimated to 17 MSEK and to 22 MSEK for the full year, yet a gross profit on a good level at around 64%.
Earlier made personnel reductions show result in a significantly lower cost level (-5,5 MSEK) compared to the same period last year.
Our British businesses, CA Traffic and CitySync, have started to harvest from the ongoing integration, but they still have a way to go to reach our profit goals. CA Traffic has during the period shown a promising increase of profit. Cost reductions have been executed and we continue the work to strengthen our sales and marketing resources.
Our French businesses have during the period shown satisfactory sales and result. Balogh continues to show stable development and Magsys has taken several projects with CA Traffics management system for traffic and develops well. The French government has the ambition to increase investments in favor of bicycle traffic in the cities and Magsys and CA Traffic will together offer solutions and be part of this exciting market.
Our acquisition of Hikob strengthens our presence even further in the French market for smart cities and their IoT products are an important strategic complement both for parking solutions and for our traffic solutions. Sales of Hikob products for the French market have been transferred to Magsys and Hikob thereby becomes a focused development company. We see ahead of us Hikobs products being sold by CA Traffic in the UK, by TagMaster in the Nordics and that some of the Groups international sales channels could start selling Hikobs products during 2019.
In France we continue recruitment to strengthen our sales and marketing resources.
TagMaster has had a quarter in line with expectations with a number of rail orders. TagMaster has also finished development of its new UHF family (readers and antennas) for toll roads which should be ready for launch during Q! 2019. TagMaster has also worked with the launch of CA Traffic products as well as now also Hikob products in the Nordic market and medium term we expect good growth also in this market.
We have come a long way integrating our acquisitions and during the year much work and costs have been invested in building cost efficient units which should grow and generate profit in the future. Vi estimate this to give us a significantly higher result already during 2019.
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 January 24, 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 Hikob 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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