Interim report January to June 2021

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Press release, Sweden, Stockholm, July 16, 2021

TagMaster shows record sales with improved results

Second quarter 2021

  • Net sales increased during the second quarter by 29,2% to 88,9 MSEK (69,8)
  • Adjusted EBITDA increased during the second quarter by 68,9% to 10,7 MSEK (6,3), corresponding to an adjusted EBITDA margin by 12,0% (9,2)
  • Operating loss was 4,8 MSEK (-12,5) which correspond to operating margin of -5,3% (-18,2)
  • Profit for the period was 4,0 MSEK (-12,4)
  • Result per share was 0,27 (-0,85) SEK1
  • Cash flow from operating activities for the period was 14,4 MSEK (5,5)
  • On April 30, 2021, TagMaster acquired Citilog SAS with a yearly turnover of approximately 5,8 M€
  • At the Annual General Meeting on April 29, 2021, it was decided to carry through a reversed split of Series B shares 1:25. May 6 was the first day of trading after the reversed split. The number of Series B shares after the reversed split amounts to 14,647,526, which means a quota value of approximately 1,25 SEK per share.

First half year

  • Net sales increased during the first half year by 10,6% to 163,3 MSEK (147,7)
  • Adjusted EBITDA increased during the first half year by 55,3% to 20,5 MSEK (13,2), corresponding to an adjusted EBITDA margin by 12,6% (8,9)
  • Operating profit/loss was 9,6 MSEK (-16,3) which correspond to operating margin of 5,8% (-11,1)
  • Profit for the period was 8,4 MSEK (-21,1)
  • Result per share was 0,58 (-1,44) SEK1
  • Cash flow from operating activities for the period was 17,8 MSEK (8,0)
Amounts in TSEK 2021
Full Year
Net sales 88 933 68 834 163 338 147 695 302 096 286 453
Net sales growth, % 29,2 29,5 10,6 52,3 -3,7 8,9
Gross margin, % 62,4 63,6 64,4 64,6 65,6 65,7
Adjusted EBITDA 10 661 6 311 20 526 13 216 34 639 27 329
Adjusted EBITDA margin, % 12,0 9,2 12,6 8,9 11,5 9,5
Equity ratio, % 49,2 53,1 55,7
Cash flow from operating activities, MSEK 14,4 5,5 17,8 8,0 37,3 27,4
Net debt/EBITDA, R12M 0,5 -0,2
Number of employees at end of period 144 108

1Adjusted retroactively for the reversed split 1:25

Comments by the CEO

During the past quarter, a gradual opening has taken place in our main European markets. This has contributed to TagMaster being able to report the highest sales to date for a single quarter with a good EBITDA result. During the quarter, we continued to increase our investment in data solutions for Smart Cities based on advanced sensor technology. Through the acquisition of French Citilog in April, we have added additional expertise in AI and Deep learning. Our solutions contribute to the necessary transition to a more sustainable transport system, which gives us a very interesting position as the massive restart packages launched in Europe and the US are largely focused on green investments and investments in infrastructure.

With proactive and continuous actions to maintain a robust supply chain, we have so far been able to deal with the global shortage of semiconductors without excessive disruptions to customer deliveries. We expect accelerating, continued challenges in the quarters ahead and we will therefore proactively implement measures to limit the impact if necessary.

We continue to invest in technology leadership in the field of intelligent transportation systems (ITS) to further increase our competitiveness. The focus is increasingly on solutions that can contribute to a more sustainable transport system where analysis, AI and Deep learning is crucial, which thus take us up in the value chain.

The acquisition of Citilog follows this logic and sharpens TagMaster's offering on the technology side, but also adds value regarding synergies on the sales and customer side. In 1997, Citilog became first in the world to introduce a video-based system for automatic detection of traffic incidents. In 2019, Citilog introduced the first analysis management module for incident management based on Deep learning technology. Citilog today offers a broad portfolio of advanced algorithms, based on AI technology, that can be used as edge solutions or cloud-based solutions. Citilog focuses on three application areas - incident management, traffic efficiency and traffic statistics and has more than 45,000 cameras and sensors installed in over 60 countries worldwide.

The Group's sales during the second quarter amounted to a record of SEK 88.9 million, which is an increase of 29.2 percent compared with the same period last year, of which organic growth accounted for 8.2 percent. Our Traffic Solutions business amounted to SEK 69.2 million, which is an increase of 19.5 percent compared with the corresponding period in 2020. In addition to the organic growth, the increase is explained by the acquisition of Citilog, which was completed on the end of April. During the quarter, Traffic Solutions accounted for 78 percent of sales, while Rail Solutions accounted for 22 percent.

The quarter shows a gross margin of 62.4 percent with an adjusted EBITDA result of SEK 10.7 million, which corresponds to an adjusted EBITDA margin of 12.0 percent. Cash flow from operating activities amounted to SEK 14.4 million with a solvency ratio of 49.4 percent. The measures taken to reduce working capital has continued to be successful and goods in stock decreased by approximately 10 percent during the quarter compared with the corresponding quarter in 2020.

TagMaster is today well positioned in a market with long-term favorable conditions for growth and good profitability. The fact that we work to improve and streamline the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are launched in Europe and the USA, which largely focus on green investments and investments in infrastructure. Our investments in growth through innovation, commercial focus and acquisitions means that we have a very positive view of the company's development for the coming years.

Jonas Svensson


Auditor’s review

This report has not been reviewed by the company auditor.


During the business year 2021 TagMaster will report at the following dates:

October 27, 2021:                            Interim report third quarter 2021

February 3, 2022:                             Earnings release 2021

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 July 16, 2021. 

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 daughter companies 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, telephone +46852800399, E-mail:


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