SecurityWorldMarket

15/07/2019

Sensys Networks acquisition dominates latest Tagmaster report

Stockholm, Sweden

The Tagmaster report for the second quarter of 2019 has been very much characterised by the acquisition of Sensys Networks, which was finalised on June 13, 2019.

Jonas Svensson, CEO, Tagmaster, made some comments on the results concerning the first half year and the second quarter of 2019 for the company.

"Through the acquisition we almost double our turnover and we also get a platform of our own in the US. We also receive a wider and deeper technology competence. Through the acquisition we achieve a higher organic growth potential and we become an even more interesting partner for building the smart cities of the future."

Sensys Networks offer a wireless platform used in traffic and parking solutions. More specific it is an end to end solution composed by sensors, edge gateways and a sophisticated cloud-based data management system (SNAPS) installed in hundreds of cities around the world. The system addresses the need to let information control to offer more efficient traffic and parking solutions.

"Our total sales during the quarter has been higher than last year explained by the fact that we include Sensys Networks’ figures for the last two weeks of the period. Adjusted for this, sales have been on the same level as last year, but with a higher gross margin. Costs have been temporarily higher for Tagmaster as well as for Sensys Networks in connection with the acquisition, which ends up in a lower result."

"Our British businesses, CA Traffic and Citysync, have had a quarter in line with Q1, but with somewhat lower margins depending on unfavourable product mix. We will finish the integration work (a common structure) during the second half of the year and we continue to strengthen our sales and marketing resources."

"Our French businesses, Balogh, Magsys and Hikob have during the period altogether shown satisfactory results. Product deliveries of Baloghs new SIL 4 product platform have now started, but in a lower volume than planned. We have during the quarter had a somewhat higher cost level connected to the finalisation of previous management changes. Also, in our French companies we bring the integration work one step further and merge legal units during the second half of the year. With an integrated business we look forward to a more powerful activity towards the exciting French market. In France we also continue recruitment to strengthen our sales and marketing resources."

"Our integration work, of previously acquired businesses, is coming to an end and our now cost-efficient units could from now on focus on increasing sales. The integration work with Sensys Networks has already started and we see in a first step close cooperation in the European sales work." Concluded Jonas Svensson.


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