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Press release, Sweden, Stockholm, October 27, 2022

Sales growth with the US market in the driver's seat

Third quarter 2022

  • Net sales increased during the third quarter by 8,2% to 86,5 MSEK (80,0). Currency translations had a positive effect of 6,2 MSEK on net sales.
  • Adjusted EBITDA decreased during the third quarter by 37,6% to 5,2 MSEK (8,4), corresponding to an adjusted EBITDA margin by 6,0 % (10,4)
  • Operating profit/loss was -2,6 MSEK (1,7) which correspond to operating margin of -3,0% (2,1)
  • Profit for the quarter was -4,5 MSEK (1,7)
  • Result per share, basic and diluted was -0,31 (0,11) SEK
  • Cash flow from operating activities for the period was -16,6 MSEK (-5,3) 

January-September 2022

  • Net sales increased during the nine-month period by 4,4% to 254,0 MSEK (243,4). Currency translations had a positive effect of 19,8 MSEK on net sales.
  • Adjusted EBITDA decreased during the period by 57,4% to 12,3 MSEK (28,9), corresponding to an adjusted EBITDA margin by 4,8% (11,9)
  • Operating profit/loss was -9,7 MSEK (11,2) which correspond to operating margin of -3,8% (4,6)
  • Profit for the period was -13,8 MSEK (10,1)
  • Result per share, basic and diluted was -0,94 (0,69) SEK
  • Cash flow from operating activities for the period was -7,9 MSEK (12,5) 
Amounts in TSEK 2022
Full Year
Net sales 86 543 80 017 254 002 243 354 337 533 326 886
Net sales growth, % 8,2 12,7 4,4 11,3 8,5 14,1
Gross margin, % 67,6 72,0 68,2 66,9 69,3 68,4
Adjusted EBITDA 5 215 8 353 12 293 28 880 17 372 33 958
Adjusted EBITDA margin, % 6,0 10,4 4,8 11,9 5,1 10,4
Equity ratio, % 56,1 52,1 - - - 54,4
Cash flow from operating activities, MSEK -16,6 -5,3 -7,9 12,5 5,9 26,2
Net debt/EBITDA, R12M - - - - 1,3 0,3
Number of employees at end of period 125 138 - - - 137

Comments by the CEO

Demand for our solutions is stable and the group's total sales increased by 8.2 percent compared to the third quarter last year. Sales for our Segment USA increased by just under 11 percent in local currency and 33 percent in SEK, while continued disruptions in the supply chain and seasonally lower activity in England and France resulted in reduced sales by just under 12 percent for Segment Europe. We, like so many other technology companies, were affected during the quarter by a continued component shortage and by a capacity shortage at our main European supplier. Through focused sourcing and great flexibility, we still manage to maintain a high level of delivery power towards our customers.

During the quarter, we were affected by cost increases for both electronic components and consumables. We have therefore continued to increase our component purchases via the spot market to keep our commitments to customers. With price increases and internal efficiency, we managed to reach an acceptable gross margin of just under 68 percent, which is, however, somewhat lower than in the third quarter of 2021.

Considering the challenging purchasing situation and the deficiency of capacity in our outsourced production, we are very pleased that we continue to have such a good gross margin. So far this year, when all nine months are included, we have a slightly higher gross margin compared to last year. It shows that our offer can withstand price increases without losing attractiveness. An important reason for this is that during the long-term component shortage, we have built up an efficient and structured sourcing process that gives us relatively good delivery power, which in the long run should lead to increased market shares. We estimate that the loss in sales of delayed deliveries due to component shortages and capacity shortages corresponded to approximately 3.5 percent of sales during the quarter, which is slightly less than previous quarters.

During the quarter, the work to achieve profitability in our latest acquisition, Citilog, has been intensified. As part of that, we have launched an efficiency program in France that aims to increase organizational efficiency, simplified structure and reduce costs while continuing to invest in the development of industry-leading products and increased commercial capacity. These measures will result in annual cost savings amounting to just over SEK 10 million with full effect from the second quarter 2023 and net approximately SEK 7 million after increased investments in sales. Associated non-recurring costs are estimated to approximately SEK 3,5 million.

We have continued to invest in technology leadership in our areas and develop more complete solutions that give our offer increased competitiveness and move us up the value chain. The focus is increasingly directed towards solutions that can contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role. Cost efficiency is also necessary to enable investments in technology leadership and strengthen our endurance.

The group's turnover during the third quarter amounted to SEK 86.5 million, which is an increase of 8.2 percent compared to the same quarter in 2021. The Traffic Solutions business amounted to SEK 73.5 million, which is an increase of approximately 7 percent compared to the corresponding quarter 2021. During the quarter, Traffic Solutions accounted for 85 percent of sales, while Rail Solutions accounted for the remaining 15 percent.

The quarter shows a gross margin of 67.6 percent with an adjusted EBITDA result of SEK 5.2 million, which corresponds to an adjusted EBITDA margin of 6 percent. Cash flow from current operations amounted to SEK -16.6 million and the group's solvency ratio was 56 percent at the end of the period.

Cash flow decreased caused by lower earnings and negative cash flow from changes in working capital linked to increases in stock and the fact that a large part of sales took place at the end of the quarter and therefore increased accounts receivable. Our stock has increased during the quarter by approximately 8 percent as a result of our strategy to invest in always maintaining a high level of service to our customers and being able to deliver even in times of severe delivery disruptions. The work to reduce the 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 making TagMaster a stronger and more resilient company while striving for higher growth. The fact that we work to improve traffic environment in cities and metropolitan areas around the world puts us in a very good position in the face of the massive restart packages being implemented in Europe and the USA and which are largely focused on green investments.

Our strategy and the value-creating potential have not changed due to the short-term limitations in the supply chain, and our investment in growth via innovation, commercial focus and acquisition means that we have a positive view of the company's development for the coming years.

Jonas Svensson


Auditor’s review

This report has been reviewed by the company auditor.

Financial Calendar

February 2, 2023:                             Earnings release 2022
April 28, 2023:                                  Annual general meeting, Kista
April 28, 2023:                                  Interim report first quarter 2023
July 14, 2023:                                   Interim report second quarter 2023
October 27, 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

For further information contact:

Jonas Svensson, CEO, +46 8-6321950,

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 October 27, 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 subsidiaries 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.


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