Interim report January to September 2019

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Profitable integration with high growth

Third quarter

  • Net sales increased during the third quarter by 88,1% to 82,4 MSEK (43,8)
  • Adjusted EBITDA amounted to 8,5 MSEK (3,2), corresponding to a margin of 10,4% (7,3)
  • EBITDA for the third quarter amounted to 4,3 MSEK (3,2), corresponding to a margin of 5,2% (7,3)
  • Net result after tax was -13,0 MSEK (0,1) whereof amortizations of goodwill in accordance with the standard accounting principles (K3) applied by TagMaster amounted to -9,6 MSEK
  • Result per share was -0,04 (0,00)
  • Cash flow from operating activities before changes in working capital for the period was 5,4 MSEK (2,9)

January - September

  • Net sales increased during the period by 18,4% to 179,4 MSEK (151,5)
  • Adjusted EBITDA amounted to 13,7 MSEK (11,8), corresponding to a margin of 7,6% (7,8)
  • EBITDA was 8,5 MSEK (11,8), corresponding to a margin of 4,8% (7,8)
  • Net result after tax was -15,8 MSEK (3,8) whereof amortizations of goodwill in accordance with the standard accounting principles (K3) applied by TagMaster amounted to -15,9 MSEK
  • Result per share was -0,06 (0,02)
  • Cash flow from operating activities before changes in working capital for the period was 9,2 MSEK (10,5)
  • 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.

Comments by the CEO

Sales during the third quarter came to 82,4 (43,8) MSEK, which is almost double compared to the third quarter 2018. The strong growth is firstly explained by the acquisition of Sensys Networks finalized during June, but also other business had a positive impact. Gross margin is still on a good level with 64,8% (64,2) with an adjusted EBITDA margin of 10,4% (7,3).

We have during the period streamlined the structure of the Group and our businesses in Great Britain, France and Sweden will from now on act under the name of TagMaster UK, TagMaster France and TagMaster Nordic. Sensys Networks will continue under the established name Sensys Networks.

Our British business – TagMaster UK – has developed well in gross margin as well as in result during the period and show increasing profits. The cost savings have been executed and we now continue the work to increase our sales and marketing resources to speed up growth.

Our French business – TagMaster France – has had a somewhat weaker quarter with lower sales and somewhat lower gross margin but with continued profits. The integration of all parts of our French business continues, but it will take some more time due to formalities when merging companies. We expect to be ready with the integration during Q1 2020. With a fully integrated business and further recruitments in sales we will enable a powerful attack on the French market.

Sensys Networks has had a quarter according to plan regarding sales as well as gross margin, while cost level has been somewhat higher due to reorganization and integration work. We have among other replaced a number of consultants with own employees. It has during the quarter generated double costs during part of the period, but will mean lower cost in the future. Integration work is going forward and Sensys Networks and the other TagMaster companies have already identified and started a number of initiatives to cooperate in sales and development.

Our Swedish business – TagMaster Nordic – has had a good quarter, both volume and gross margin. Continued efforts in sales and digital marketing in all our units are judged to give positive impact on sales going forward.

With the acquisition of Sensys Networks we have created a company being almost double the size in sales. Through the acquisition we have created a platform of our own in the US market and we have also achieved a wider and deeper technology competence. The acquisition is providing for us a higher organic growth potential and we become a more interesting partner in building the smart cities of the future.

TagMaster is today an important player in a market with good potential for growth and good profits. That we every day work on improving the traffic environment in cities and metropolitan areas around the world gives us a lot of energy to continue to work hard and very focused.

Jonas Svensson


This as well as previous financial reports could be found at the company homepage

For further information, please 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 24, 2019.

About TagMaster

TagMaster is an application driven technology company that designs and markets advanced sensor systems and solutions based on radio, radar, vision and magnetic technology for demanding environments. Business areas include Traffic Solutions and Rail Solutions sold under the brands TagMaster, CitySync, Balogh, CA Traffic, Magsys, Hikob and Sensys Networks with innovative mobility solutions in order to increase efficiency, security, convenience and to decrease environmental impact within Smart Cities. TagMaster has subsidies in UK, France and US 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 Nasdaq First North Growth Market in Stockholm, Sweden. TagMasters certified advisor is Erik Penser Bank phone +4684638300, E-mail:  


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