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25/07/2021

Tagmaster interim results show record sales

Stockholm, Sweden

Tagmaster's CEO, Jonas Svensson comments on the companies latest financial results.

According to the comments from Jonas Svensson, CEO at Tagmaster, a gradual opening has taken place in the company's main European markets over the last quarter and this has contributed to Tagmaster being able to report the highest sales to date for a single quarter with a good EBITDA result.

"During the quarter, we continued to increase our investment in data solutions for Smart Cities based on advanced sensor technology. Through the acquisition of French Citilog in April, we have added additional expertise in AI and Deep learning. Our solutions contribute to the necessary transition to a more sustainable transport system, which gives us a very interesting position as the massive restart packages launched in Europe and the US are largely focused on green investments and investments in infrastructure." says Svensson in his financial statement.

He goes on to say that the company has proactively and continuously maintained its robust supply chain, enabling them to deal with the global shortage of semiconductors without excessive disruptions to customer deliveries. However, they do expect accelerating, continued challenges in the quarters ahead and intend to therefore proactively implement measures to limit the impact if necessary.

Svensson believes that the acquisition of Citilog sharpens Tagmaster's offering on the technology side, and also adds value regarding synergies on the sales and customer side. In 1997, Citilog became first in the world to introduce a video-based system for automatic detection of traffic incidents. In 2019, Citilog introduced the first analysis management module for incident management based on Deep learning technology. Citilog today offers a broad portfolio of advanced algorithms, based on AI technology, that can be used as edge solutions or cloud-based solutions.

The Group's sales during the second quarter amounted to a record of SEK 88.9 million, which is an increase of 29.2 percent compared with the same period last year, of which organic growth accounted for 8.2 percent. The Traffic Solutions business amounted to SEK 69.2 million, which is an increase of 19.5 percent compared with the corresponding period in 2020. In addition to the organic growth, Svensson says the increase is explained by the acquisition of Citilog, which was completed at the end of April. During the quarter, Traffic Solutions accounted for 78 percent of sales, while Rail Solutions accounted for 22 percent.

"Tagmaster is today well positioned in a market with long-term favourable conditions for growth and good profitability. The fact that we work to improve and streamline the traffic environment in cities and metropolitan areas around the world gives us a very good position in the face of the massive restart packages that are launched in Europe and the USA, which largely focus on green investments and investments in infrastructure. Our investments in growth through innovation, commercial focus and acquisitions means that we have a very positive view of the company's development for the coming years," concludes Jonas Svensson.


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