SecurityWorldMarket

07/02/2019

Tagmaster equals sales performance and integrates acquisitions

Stockholm, Sweden

Tagmaster has announced its final quarter and year end results to the end of December 2018.  In the formal release the CEO, Jonas Svensson, comments that net sales were at the same level as the previous year at 195,6 MSEK (195,4 in 2017), and that the company has initiated the process to investigate the possibilities of expanding the ownership base with a number of larger investors. The purpose is to speed up the established growth strategy i.e to grow through acquisitions within technology to smart cities.

Mr Svensson goes on to say that the Traffic sales have developed well during the period with a 15% growth and with a 26% growth for the whole year. "Our sales during the quarter have been lower than last year explained by the rail sales being lower than last year when a major part of Baloghs rail sales occurred during the fourth quarter (50% of year sales). 

In addition, the personnel reductions made by the company earlier are now showing result in a significantly lower cost level (-5,5 MSEK) compared to the same period last year.

"Our British businesses, CA Traffic and Citysync, have started to harvest from the ongoing integration, but they still have a way to go to reach our profit goals. CA Traffic has during the period shown a promising increase of profit. Cost reductions have been executed and we continue the work to strengthen our sales and marketing resources," says Svensson.

In Svenssons view the French businesses have during the period shown satisfactory sales and results. "Balogh continues to show stable development and Magsys has taken several projects with CA Traffics management system for traffic and develops well. The French government has the ambition to increase investments in favour of bicycle traffic in the cities and Magsys and CA Traffic will together offer solutions and be part of this exciting market."

The acquisition of Hikob is strengthening the company's presence even further in the French market for smart cities and their IoT products are an important strategic complement both for parking solutions and for our traffic solutions. "Sales of Hikob products for the French market have been transferred to Magsys and Hikob thereby becomes a focused development company," explains Jonas Svensson.  "We see ahead of us Hikobs products being sold by CA Traffic in the UK, by Tagmaster in the Nordics and that some of the Groups international sales channels could start selling Hikobs products during 2019." The company is also continuing its recruitment drive in France to strengthen sales and marketing resources.

Tagmaster has had a quarter in line with expectations with a number of rail orders. Tagmaster has also finished development of its new UHF family (readers and antennas) for toll roads which should be ready for launch during Q1 2019. Tagmaster has also worked with the launch of CA Traffic products as well as now also Hikob products in the Nordic market and medium term good growth is anticipated in this market.

"We have come a long way integrating our acquisitions and during the year much work and costs have been invested in building cost efficient units which should grow and generate profit in the future, and give us a significantly higher result already during 2019," concludes Jonas Svensson.


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