"Tagmaster once again was resilient and the strong gross margins we delivered during the quarter emphasises that our actions to increase flexibility, focus, and growth orientation of our businesses have been successful. We have during the quarter continued to increase our investments in solutions contributing to the necessary conversion to a more durable transport system, giving us a very interesting position since the massive restart packages launched in Europe and the US to a great deal are oriented towards green investments.
The company wide efficiency programme launched during the second quarter with structural changes such as reallocation of resources to new business opportunities, optimising of offices and reduction of staff to adopt the business to a more long term change and a more agile working has resulted in cost reductions of around 5 MSEK during the fourth quarter.
We have during the quarter moved the production we had in China to Europe, partly to reduce the risk of interruptions In the supply chain, partly to reduce long and environmentally impacting component transports.
The changes made, the efficiency programme as well as moving of the production are important steps to make the Group more flexible, focused and growth oriented.
We continue to invest in our technical leadership to increase our competitiveness. Our focus is more and more towards solutions which could contribute to more durable transport systems and to move us up in the value chain where analytics, AI and deep tech play an important role.
One example is solutions to handle an increased need for systems for what is called active travel, I. e. cycling and walking. We have during the quarter launched a product family in the British market to support the investments made to make it easier for cycle traffic and to reduce congestion in busses and trains.
Another example is our launch of a radar detection system measuring flows of cyclists and walkers in city environment. The new radar detection system is launched simultaneously in France and in Great Britain and will in an easy way make it easier for cities to develop better solutions for cycle traffic and for walking. The system is simple to implement and since the detectors are mounted at existing poles and traffic signs. This means that the system could be used for temporary as well as for permanent and long-term measurement.
We have during the quarter also launched the first product in a new family of ANPR cameras. The new camera family is IP based with its own software offering solutions based on AI and deep learning. The camera family is specially designed for applications within parking, access and security and for intelligent traffic monitoring systems.
The Group turnover during the quarter was 68 MSEK, which is a reduction with 19% compared to the same quarter 2019. The reduction is explained by our Traffic business decreasing during the quarter among other due to delayed deliveries from our US business and lower activity in our EU units in France and in The UK due to lock-downs. Our traffic business was during the quarter 52 MSEK which is around 75% of the turnover during the fourth quarter 2019. Rail solutions increased the business with some 10% during the quarter compared to corresponding quarter 2019. During the quarter 75% of the sales came from Traffic and 25% from Rail.
Tagmaster is today well positioned in a market with long term good prerequisites for growth and good profits. To work with improving the traffic environment in cities and metropolitan areas around the world provides a very good position for the massive restart packages launched in Europe and the US and which in great part are directed towards green investments. That we during the pandemic have succeeded to increase our flexibility, focus and growth orientation makes it look very good for the future.