QUARTERLY REPORT FOR TAGMASTER AB January-June 2015
Press release Sweden Stockholm 16 July 2015
Continued growth with robust cash flow
Second quarter
- Net sales increased by 14,2% during the second quarter and was 18,7 MSEK (16,4)
- Result before depreciation (EBITDA) was 2,5 MSEK (2,2), corresponding to a margin of 13,3% (13,1)
- Net result was 1,9 MSEK (1,7)
- Result per share was 0,02 (0,02)
- Cash flow from the business for the period April-June was 3,8 MSEK
First half year
- Net sales increased during the period by 23,5% to 37,9 MSEK (30,7)
- Result before depreciation (EBITDA) increased to 5,1 MSEK (3,7), which corresponds to a margin of 13,5% (12,1)
- Net result was 3,9 MSEK (2,7)
- Result per share was 0,03 (0,03)
- Cash flow from the business for the first half year was 7,2 MSEK
| Sales and result | |||||||||
| TSEK | Second quarter | First half year | Full year | ||||||
| 2015 | 2014 | Change | 2015 | 2014 | Change | 2014 | 2013 | Change | |
| Sales | 18 713 | 16 381 | 14% | 37 947 | 30 735 | 23% | 62 505 | 50 344 | 25% |
| Operating income (EBITDA) | 2 493 | 2 154 | 16% | 5 124 | 3 710 | 38% | 7 084 | 2 776 | 155% |
| Operating margin (EBITDA) | 13,3% | 13,1% | 13,5% | 12,1% | 11,3% | 5,5% | |||
| Income before tax | 2 382 | 1 902 | 15% | 4 983 | 3 156 | 42% | 6 740 | 1 512 | 183% |
| Operating cash flow | 3 844 | 1 213 | 217% | 7 210 | -454 | 7 917 | -1 209 | ||
| Earnings per share | 0,02 | 0,02 | 0,03 | 0,03 | 0,05 | 0,01 | 150% |
Comments by the CEO
Our sales during the second quarter have had a continued growth, just somewhat slower than in the first quarter. Our continuous work on improving our margins now also start to show up in the result.
Our Rail business has been stable during the period with an even flow of serial deliveries to our main customers. We know by experience that our rail market is volatile by its character with major shifts between years. New projects are discussed and our focus is to work more and tighter with our already established big partners, with whom we want to expand our business and become a more important business partner for them. We make the judgment that we will see some more new projects coming during 2015 and with serial deliveries during coming years.
Our Traffic business has continued to develop well in the US market, but also the markets in the Gulf states have developed well. In the EMEA and the Nordic markets the sales has been according to plan and we continue to increase our efforts during 2015 supported by our newly launched UHF products, which we judge will have a positive impact on sales and margin during the following years.
We have during the quarter carried out a rights issue, which was subscribed to 209%, and a directed issue, which together added almost 30 MSEK to the company as well as a new strategic owner through LMK Ventures AB. The capital should be used for selective acquisitions in adjacent technology areas like sensors, detectors and camera technology (LPR) with the purpose to widen our product offering and be a more attractive supplier of the type of information which is a prerequisite for building the smart cities of the future.
We have during the quarter worked actively with acquisitions discussions, which has resulted in the acquisition of CitySync, which was communicated July 10.
The innovation work will continue with increasing speed and we have during the quarter started the launch of a new member, XT Mini, of our new UHF family. Sales start is expected at the end of quarter three. In addition to the new XT Mini we have during the quarter started the launch of a number of software add-ons to exisiting UHF products, which add unique functions making us further differentiated positively in the market.
Our quarterly result of 2,5 MSEK (2,2), is an improvement compared to previous year and it is a good result considering that the compared figures from last year included a great deal of rail sales. In summary we are happy about both increase in turnover and in result, but we want more going ahead. Our cash flow has developed well during the quarter which is also reflected in a significantly stronger balance sheet.
Jonas Svensson
CEO
This report like all previous economic reports can be found at the company home page www.tagmaster.com
For further information, please contact:
Jonas Svensson, CEO, +46 8-6321950, jonas.svensson@tagmaster.com
About TagMaster
TagMaster is an application driven technology company that designs and markets advanced radio frequency identification (RFID) products and systems for demanding environments. Business areas include Traffic Solutions and Rail Solutions providing innovative applications in order to increase efficiency, security, convenience and to decrease environmental impact. TagMaster has dedicated agencies in the US and in China and exports mainly to Europe, Middle East, Asia and North America via a global network of partners, systems integrators and distributors. 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. For more information about TagMaster, please visit www.tagmaster.com