Interim report January to June 2019
Outlining the new TagMaster
- 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.
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. 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.
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: firstname.lastname@example.org