Interim report January to March 2018
Press release, Sweden, Stockholm, April 26, 2018
TagMaster grows at good pace
- Net sales increased during the first quarter by 35,5% to 57,0 MSEK (42,1)
- Result before depreciation (EBITDA) increased during the first quarter by 9,3% to 5,3 MSEK (4,8), corresponding to a margin of 9,2% (11,4)
- Net result after tax was 2,9 MSEK (3,1)
- Result per share was 0,01 (0,02)
- Cash flow from the business for the period was -3,2 MSEK (7,3)
Comments by the CEO
The TagMaster Group has continued to grow in good speed (35,5%) during the first quarter. Our sales during the first quarter has shown good development for most of the companies, while CA Traffic still has been influenced by the ongoing change work which has been going on since the acquisition.
Balogh has during the quarter continued to harvest the fruits from the change work and finished deliveries of the products which will no longer belong to the offerings. We have a more cost-efficient organization which should deliver good profits with lower volumes and we will therefore strengthen the sales organization with among other more employees.
CitySync has during the quarter finalized projects for a big retail chain in England and delivered further parking solutions for airport projects in the Nordics. We also see that cities are starting to look at using ANPR systems to handle e g environmental control and classification of diesel vehicles.
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 have continued to 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 that the change work will be finished during the second quarter 2018.
Magsys has in small scale started the launch of CA Traffics products in the French market and during the quarters to come the work will be intensified and the CitySync ANPR products will be launched.
TagMaster has had a robust quarter with a lot of development workaround our new products for toll road solutions, which are expected to be ready during Q4. The US market has started the year positively, while the India market has been in a quieter period.
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. Balogh is in the final phase of a couple of development projects, which are interesting and which we expect to have a positive influence, but probably not until the second half of 2018. Balogh has already during the quarter received some smaller orders on the new SIL product platform.
Our quarterly result of 5,3 MSEK (4,8) and our cash flow from the running business of -3,1 (7,3) has been influenced negatively by increased accounts receivables which is a consequence of high sales during the latter part of the quarter. But as always, we still have work to do and it is worth mentioning that the variation between quarters could be substantial since among other our Rail business is quite 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 April 26, 2018.
TagMaster is an application driven technology company that designs and markets advanced identification 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 and 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