"During the quarter, we experienced good demand for our solutions, and sales for the quarter were record high. Sales increased by just over 18 percent compared to the same period in 2021 and the margin on adjusted EBITDA level of 14 percent is the highest we have achieved in a single quarter. Both Segment Europe and Segment USA show growth during the quarter.

Tagmaster, like so many other technology companies, was affected during the quarter by a continued component shortage and by a capacity shortage at our main supplier. Through focused sourcing and great flexibility, we still manage to maintain high delivery power towards our customers, which contributes to our strong growth.

During the quarter, we were affected by cost increases for both electronic components and consumables. With price increases to customers and internal efficiency, we managed to reach an acceptable gross margin of 68.5 percent during the period, which is, however, lower than in the fourth quarter of 2021.

Considering the challenging purchasing situation and the deficiency of capacity in our outsourced production, we are very satisfied with the continued good gross margin. For the full year, we have the same gross margin as last year. It shows that our offer can withstand price increases without losing attractiveness.

Efficiency programme in France

During the third quarter, an efficiency programme was initiated in France aimed at increasing organisational efficiency, simplified structure and reduce costs while continuing to invest in the development of industry-leading products and increased commercial capacity. These measures were executed during the fourth quarter and will result in annual cost savings of just over SEK 11 million with full effect from the second quarter 2023, and net approximately SEK 7 million after increased investments in sales. Among other things, the efficiency programme has led to our latest acquisition, Citilog, reaching profitability during the fourth quarter. Associated non-recurring costs amounted to SEK 3.8 million.

Technology leadership investment

We have continued to invest in technology leadership in our areas and develop more complete solutions that give our offer increased competitiveness and move us up the value chain. The focus is increasingly directed towards solutions that can contribute to a more sustainable transport system where analysis, AI and Deep Learning play an important role. We also see that our investment in energy-saving sensor systems, where most of our solutions can be powered by solar energy, as well as the simplicity of the sensor systems, configuration via tablet or mobile, creates more business opportunities. Cost efficiency is also necessary to enable investments in technology leadership and strengthen our endurance and increased competitiveness.

The group's turnover during the fourth quarter amounted to SEK 104.6 million, which is an increase of 25.2 percent compared to the same period in 2021. The quarter's organic turnover change, with adjustment for exchange rate effects of SEK 5.6 million, amounted to SEK 15.5 million kronor corresponding to an increase of 18.5 percent. The Traffic Solutions business amounted to SEK 86.4 million, which is an increase of approximately 47 percent compared to the corresponding quarter in 2021. During the quarter, Traffic Solutions accounted for 83 percent of sales, while Rail Solutions accounted for 17 percent.

Long-term good conditions

Today, Tagmaster is well positioned in a market with long-term good conditions for growth and good profitability, and we are determined to continue making Tagmaster a stronger and more resilient company while striving for higher growth. The fact that we work to improve traffic environment in cities and metropolitan areas around the world puts us in a very good position in the face of the massive restart packages being implemented in Europe and the USA and which are largely focused on green investments.

Our strategy and the value-creating potential have not changed due to the short-term limitations in the supply chain, and our investment in growth via innovation, commercial focus and acquisition means that we have a positive view of the company's development for the coming years."