Year end report for TagMaster AB January-December 2017
Press release Stockholm, Sweden, 26 January 2018
TagMaster ends the year in a strong position
- Net sales increased during the fourth quarter by 43,7% to 57,6 MSEK (40,1)
- Result before depreciation (EBITDA) increased during the fourth quarter by 55,9% to 7,8 MSEK (5,0), corresponding to a margin of 13,5% (12,4)
- Net result after tax was 7,6 MSEK (8,6)
- Result per share was 0,04 (0,05)
- Cash flow from the business for the period was 4,7 MSEK (2,0)
- TagMaster acquired SA Magsys with access on 21 December 2017. Magsys was established in 2003 and is the leading added value ITS (intelligent transportation solutions) distributor in France with a strong foothold in vehicle counting, travel time management and on-street parking monitoring. The consideration will be funded from the existing bank facilities and the acquisition is expected to be earnings enhancing to TagMaster in 2018.
January - December
- Net sales increased during the period by 71,6% to 195,4 MSEK (114,0)
- Result before depreciation (EBITDA) was 21,8 MSEK (3,8), corresponding to a margin of 11,2% (3,3)
- Net result after tax was 17,1 MSEK (4,2)
- Result per share was 0,09 (0,03)
- Cash flow from the business for the period was 20,5 MSEK (0,9)
- No dividend is proposed
Comments by the CEO
The TagMaster Group has made its best quarter ever with record sales and a good profit margin. Our sales have shown good development for TagMaster as well as for Balogh with momentary lower sales for CitySync while CA Traffic continues to feel the change, started after our takeover during the spring.
Balogh has during the quarter harvested the fruits from the changes for more than a year and the supply chain is working, which means that it has been possible to deliver many of the products no longer in the assortment as of 2018. We enter 2018 with a cost-efficient organization able to deliver good profits and lower volumes and we will therefore focus further on strengthening the sales organization with among other things more employees.
CitySync continues to work with several bigger parking projects together with several big international customers and hopefully the deliveries will start late in the first quarter of 2018. We see a strong trend in for example Scandinavia, that ANPR systems become a key component in the parking systems of the future, “free-flow parking”, where barriers and ticket machines disappear.
CA Traffic has continued to change towards a more scalable and more profitable business also for lower sales volumes. We will outsource production and assembly and simplify the product program and invest more in the new and profitable products, which also fit better in the export markets. We will during the first quarter of 2018 integrate our two British units (CitySync and CA Traffic) further and several functions will be shared, and common processes and systems will be used. We estimate the change to be finalized during the second quarter 2018.
TagMaster Traffic business has had a good volume development during the quarter with continued positive margin development. The US market has continued to develop well, and the Indian market has been strong in products for toll roads. We will during 2018 increase the speed, developing more products in RFID, Radar and ANPR, several of which will be launched during 2018. The acquisition of Magsys was completed on December 21 and we look positively into common business opportunities in the French market during 2018.
Both TagMaster and Balogh have had satisfactory Rail businesses during the quarter but ahead of us, we foresee a somewhat lower level for the quarters to come. We have started delivery of our new RailTag with 20-year lifetime. Balogh is in the final phase of a couple of product development projects which are interesting and which we expect to have a positive impact, but not until the later part of 2018.
Our quarterly result of 7,8 MSEK (5,0) and our cash flow from the running business of 4,7 (2,0) is the best ever and very gratifying but we still have work to do and it is still worth mentioning that the variation between quarters could be significant since especially our rail business is volatile.
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, email@example.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 January 26, 2018.
TagMaster is an application driven technology company that designs andmarkets advanced identification systems and solutions based on radio & vision technology (RFID & ANPR) for demanding environments. Business areas include Traffic Solutions and Rail Solutions sold under the brands TagMaster, CitySync, Balogh, CA Traffic & 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 Remium Holding AB. www.tagmaster.com