Interim report January to September 2020

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Press release Stockholm, Sweden October 22, 2020

TagMaster delivers good margins in a quarter characterized by recovery

Third quarter 2020

  • Net sales decreased during the third quarter by 13,9% to 71,0 MSEK (82,4)
  • Adjusted EBITDA decreased during the third quarter by 30,3% to 8,6 MSEK (12,4), corresponding to an adjusted EBITDA margin by 12,2% (15,0)
  • Operating profit was 2,7 MSEK (1,2) which correspond to an operating margin of 3,9% (1,4)
  • Profit for the period was 3,8 MSEK (-5,6)
  • Result per share was 0,01 (-0,02)
  • Cash flow from operating activities for the period was 8,9 MSEK (-4,4)

January - September

  • Net sales increased during the nine-month period by 21,9% to 219,0 MSEK (179,4)
  • Adjusted EBITDA increased during the period by 0,2% to 21,9 MSEK (21,8), corresponding to an adjusted EBITDA margin by 10,0% (12,2)
  • Operating loss was -13,6 MSEK (0,0) which correspond to an operating margin of -6,2% (-0,0)
  • Net loss for the period was -17,8 MSEK (-5,7)
  • Result per share was -0,05 (-0,02)
  • Cash flow from operating activities for the period was 16,9 MSEK (-1,4)
  • The Covid-19 pandemic has had a negative impact on turnover from mid-March and measures have been taken for all parts of the business to mitigate the effects of the corona virus.
  • As of January 1, 2020, TagMaster has changed accounting principles from BFNAR 2012: 1 (K3) to IFRS. The effects of the transition are shown in Note 6.
  • As a long-term activity during the period a companywide efficiency program was initiated for the European part of the business. These long-term actions have led to onetime costs of around 9 MSEK during the second quarter of which most of it impacts the cash flow. The program is expected to result in a yearly cost saving of around 10 MSEK from the end of quarter 3 2020.
Amounts in TSEK 2020
Full Year
Net sales 70 970 82 417 218 665 179 423 302 197 262 955
Net sales growth, % -13,9 88,1 21,9 18,4 35,2 34,5
Gross margin, % 66,0 64,8 65,0 65,0 66,4 66,6
Adjusted EBITDA 8 643 12 401 21 859 21 809 36 110 36 051
Adjusted EBITDA margin, % 12,2 15,0 10,0 12,2 11,9 13,7
Equity ratio, % 56,3 56,2 56,4
Cash flow from operating activities, MSEK 8,9 -4,4 17,0 -1,4 22,2 3,9
Net debt/EBITDA, R12M 0,1 1,1
Number of employees at end of period 99 115

Comments by the CEO

After a very challenging second quarter the third quarter was characterized by stabilization and a careful, gradual recovery for the greater part of our businesses. The strong margins we delivered during the quarter is a sign of resilience and our measures to increase the companies' flexibility, focus and growth orientation make me believe in continued good development. During the quarter, we also increased our investments in solutions that contribute to the necessary transition to a more sustainable transport system.

During the pandemic we have continued to focus the health and safety of our employees and to provide the best service for our customers. All short term layoffs have returned to full time work during the quarter.

The group wide efficiency program announced in the second quarter with structural changes, such as reallocation of resources to new business opportunities and optimization of offices and reduction of staff to adjust the business to a more permanent change in the future sales has gone well and. Our judgement is that the cost savings are somewhat higher than first expected. The changes made are an important step to become more flexible, focused and growth oriented.

We continue to invest in our technology leadership to further increase the competitiveness. Our focus is increasingly on solutions that can contribute to a more sustainable transport system.

 An example of this is solutions to handle an increased presence of bicycles in cities. We have in the US during the quarter received two awards for our self-developed GiveMeGreen!, a mobile app that gives cyclists priority in traffic lights based on Sensys Network's wireless sensor technology combined with a cloud solution.

Another example is a sensor-based solution for charging stations for electric vehicles, enabling cities and regions to inform drivers about which charging stations are available and where they are located. The solution was launched in France during the quarter.

The total turnover for the Group during the third quarter was 71 MSEK, a decrease of 14% compared to the corresponding quarter 2019. The decrease is explained by our Rail Solutions business, which has decreased due to delayed projects. Our Traffic Solutions business was during the quarter 64 MSEK, which is equal to the sales during the third quarter 2019. Our Traffic Solutions business thereby was 90% of our business while the Rail Solutions business was only 10%.

The quarter shows a strong gross margin of 66% and with an adjusted EBITDA result of 8,6 MSEK corresponding to an adjusted EBITDA margin of 12,2 %. The cash flow from the business was positive with +8,9 MSEK and solidity is good with 56,3%. Our work to reduce working capital has been successful and our stock has decreased with 20 % compared to the corresponding quarter 2019.

TagMaster is today well positioned on a market with long term good prerequisites for growth and good profits. To work daily to improve the traffic environment in cities and urban areas around the world provide us with lots of energy to continue to work hard and targeted also in difficult times like these. The fact that during the pandemic we have succeeded in increasing our flexibility, focus and growth orientation makes it look good for the future.

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:

Year-end report                                                           January 28, 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 October 22, 2020. 

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 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 Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA, telephone +46852800399, E-mail:


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