SecurityWorldMarket

27/10/2020

Latest Tagmaster financials show resilience with strong margins

Stockholm, Sweden

Tagmaster has just released details of its interim financials January to September 2020 which shows that the company has enjoyed strong margins in the face of adversity.  A statement from CEO, Jonas Svensson re-affirms that the company is recovering and in a good position for the future. " After a very challenging second quarter the third quarter was characterised by stabilisation and a careful, gradual recovery for the greater part of our businesses."

"The strong margins we delivered during the quarter is a sign of resilience and our measures to increase the companies' flexibility, focus and growth orientation make me believe in continued good development. During the quarter, we also increased our investments in solutions that contribute to the necessary transition to a more sustainable transport system."

During the pandemic Tagmaster focussed on the health and safety of our employees and to provide the best service for our customers and according to the statement, all short term layoffs have now returned to full time work during the quarter.

Svensson explains that the group wide efficiency programme announced in the second quarter with structural changes, such as reallocation of resources to new business opportunities and optimisation of offices and reduction of staff to adjust the business to a more permanent change in the future sales has gone well and. "Our judgement is that the cost savings are somewhat higher than first expected. The changes made are an important step to become more flexible, focused and growth oriented."

The company is continuing to invest to further increase competitiveness with an increasing focus on solutions that can contribute to a more sustainable transport system. For example, solutions to handle an increased presence of bicycles in cities. "We have in the US during the quarter received two awards for our self-developed Givemegreen!, a mobile app that gives cyclists priority in traffic lights based on Sensys Network's wireless sensor technology combined with a cloud solution."

According to the report, the total turnover for the Group during the third quarter was 71 MSEK, a decrease of 14% compared to the corresponding quarter 2019. The decrease is explained by the Rail Solutions business due to delayed projects. The Traffic Solutions business on the other hand achieved sales equal to the sales during the third quarter 2019. As a result the Traffic Solutions business accounted for 90% of the turnover with the Rail Solutions business accounting for only 10%.

"The quarter shows a strong gross margin of 66% and with an adjusted EBITDA result of 8,6 MSEK corresponding to an adjusted EBITDA margin of 12,2 %. The cash flow from the business was positive with +8,9 MSEK and solidity is good with 56,3%. Our work to reduce working capital has been successful and our stock has decreased with 20 % compared to the corresponding quarter 2019." confirmed Jonas Svensson.


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