Interim report January to September 2021

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Press release, Sweden, Stockholm, October 27, 2021

Increased net sales and gross margin despite difficult component situation

Third quarter 2021

  • Net sales increased during the third quarter by 12,7% to 80,0 MSEK (71,0). Currency translations had a negative effect of 0,7 MSEK on net sales.
  • Adjusted EBITDA decreased during the third quarter by 3,3% to 8,4 MSEK (8,6), corresponding to an adjusted EBITDA margin by 10,4 % (12,2)
  • Operating profit/loss was 1,7 MSEK (2,7) which correspond to operating margin of 2,1% (3,9)
  • Profit for the period was 1,7 MSEK (3,3)
  • Result per share was 0,11 (0,23) SEK1
  • Cash flow from operating activities for the period was -5,3 MSEK (8,9)

January – September 2021

  • Net sales increased during the nine-month period by 11,3% to 243,4 MSEK (219,0) Currency translations had a negative effect of 12,1 MSEK on net sales.
  • Adjusted EBITDA increased during the period by 32,1% to 28,9 MSEK (21,9), corresponding to an adjusted EBITDA margin by 11,9% (10,0)
  • Operating profit/loss was 11,2 MSEK (-13,6) which correspond to operating margin of 4,6% (-6,2)
  • Profit for the period was 10,1 MSEK (-17,8)
  • Result per share was 0,69 (-1,21) SEK1
  • Cash flow from operating activities for the period was 12,5 MSEK (16,9) 
  • 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.
Amounts in TSEK 2021
Full Year
Net sales 80 017 70 970 243 354 218 665 311 142 286 453
Net sales growth, % 12,7 -13,9 11,3 21,9 3,0 8,9
Gross margin, % 72,0 66,0 66,9 65,0 67,1 65,7
Adjusted EBITDA 8 353 8 643 28 880 21 859 34 351 27 329
Adjusted EBITDA margin, % 10,4 12,2 11,9 10,0 11,0 9,5
Equity ratio, % 52,1 56,3 - - - 55,7
Cash flow from operating activities, MSEK -5,3 8,9 12,5 17,0 23,1 27,4
Net debt/EBITDA, R12M - - - - 0,7 -0,2
Number of employees at end of period 138 99 - - - -

1Adjusted retroactively for the reversed split 1:25

Comments by the CEO

During the past quarter, a further gradual opening has taken place in several of our markets, while the global component shortage has to some extent held back development. Despite the challenging component situation, the gross margin for the quarter is the best in TagMaster's history in combination with a robust EBITDA result. During the quarter, we continued our investments in data solutions for Smart Cities based on advanced sensor technology. The acquisition of Citilog, which was completed in the second quarter, added additional expertise in AI and Deep Learning. TagMaster's solutions contribute to the necessary transition to a more sustainable transport system, which gives us a very interesting position.

During the quarter, we worked intensively with proactive and continuous measures to ensure that a robust supply chain is maintained and have managed to avoid serious disruptions to customer delivery. We estimate that the loss in sales of inhibited deliveries as a result of the component shortage amounted to 4-5 percent of sales during the third quarter, corresponding to just under SEK 4 million.

During the quarter, we also experienced increased costs for both components and input goods, which affected the gross margin. We have compensated for these increasing component costs through price increases, which partly had an impact during the quarter, but where there is a delay effect of one to two quarters. We expect continued challenges in the coming quarters and we will proactively implement measures to limit the impact.

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

The acquisition of Citilog during the second quarter has sharpened TagMaster's offering on the technology side and adds value in the form of synergies on the sales and customer side. Citilog also contributed to an improvement in the Group's gross margin during the quarter. Citilog's products are included as part of several different ITS (Intelligent Transport System) applications such as Incident Management, Traffic Signal Control and Infomobility. During the quarter, a program for cost optimization was implemented, the work of creating a joint sales force for Citilog and Sensys Networks was launched and the work of integrating development roadmaps between these two companies began.

The Group's sales during the third quarter amounted to SEK 80 million, which is an increase of 12.7 percent, of which organic by 0.5 percent, compared with the corresponding period in 2020. Our Traffic Solutions business amounted to SEK 68.9 million, which is an increase of 7.6 percent compared with the corresponding period in 2020. During the quarter, Traffic Solutions accounted for 86 percent of sales while Rail Solutions accounted for 14 percent.

The gross margin for the quarter was 72.0 percent with an adjusted EBITDA result of SEK 8.4 million, which corresponds to an adjusted EBITDA margin of 10.4 percent. Cash flow from operating activities amounted to SEK -5.3 million and the Group's solvency ratio was 52.1 percent at the end of the period. Efforts to reduce working capital have continued to focus and inventories decreased slightly during the quarter compared with the corresponding quarter in 2020. However, accounts receivable increased during the latter part of the quarter, which largely explains the negative cash flow.

TagMaster is today well positioned in a market with long-term good conditions for growth and good profitability. The fact that we work to improve 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 being launched in Europe and the USA and which are largely focused on green investments. Our investments in growth through innovation, commercial focus and acquisitions mean that we have a positive view of the company's development for the coming years.

Jonas Svensson


Auditor’s review

This report has been reviewed by the company auditor.


During the business year 2022 TagMaster will report at the following dates:

February 3, 2022:                             Earnings release 2021

April 28, 2022:                                  Annual general meeting, Kista

April 28, 2022:                                  Interim report first quarter 2022

July 15, 2022:                                   Interim report second quarter 2022

October 27, 2022:                            Interim report third quarter 2022

February 2, 2023:                             Earnings release 2022

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 27, 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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