According to Tagmaster, the purpose of the programme is to adapt the cost level to the existing business volume and it is a part of the planning strategy that was already in place at the time of acquisition. Citysync had, at the time of the acquisition, a structure for handling all product groups within Image Sensing Systems and since the acquisition was limited to the LPR/ANPR (License Plate Recognition) there are opportunities for a more efficient organisation.

The cost reduction programme includes around 10 people and there is an ambition to lower cost by a minimum of 5 MSEK (approx. £380,000) on a yearly basis. The programme should be ready during the present quarter and the restructuring costs will be absorbed during the quarter.

Whilst Tagmaster works on cost savings they also intend to work on enhancing the product offering by increasing the speed of innovation, with the aim of launching new products during the present year. It is hoped that these plans plus increased focus on the sales side will result in profitable growth for Citysync Ltd for 2016.