Tagmaster registers record sales

Stockholm, Sweden

Jonas Svensson, CEO Tagmaster AB

In its January - December 2017 year end report, the Tagmaster Group has registered its best quarter ever with a record sales increase of 43.7% and a good profit margin.

"Our sales have shown good development for Tagmaster as well as for Balogh with momentary lower sales for CitySync while CA Traffic continues to feel the change, started after our takeover during the spring." says CEO, Jonas Svensson.

The CEO continued with his statement on the results. "Balogh has during the quarter harvested the fruits from the changes for more than a year and the supply chain is working, which means that it has been possible to deliver many of the products no longer in the assortment as of 2018. We enter 2018 with a cost-efficient organization able to deliver good profits and lower volumes and we will therefore focus further on strengthening the sales organization with among other things more employees."

"Citysync continues to work with several bigger parking projects together with several big international customers and hopefully the deliveries will start late in the first quarter of 2018. We see a strong trend in for example Scandinavia, that ANPR systems become a key component in the parking systems of the future, “free-flow parking”, where barriers and ticket machines disappear."

"CA Traffic has continued to change towards a more scalable and more profitable business also for lower sales volumes. We will outsource production and assembly and simplify the product programme and invest more in the new and profitable products, which also fit better in the export markets. We will during the first quarter of 2018 integrate our two British units (Citysync and CA Traffic) further and several functions will be shared, and common processes and systems will be used. We estimate the change to be finalised during the second quarter 2018."

"Tagmaster Traffic business has had a good volume development during the quarter with continued positive margin development. The US market has continued to develop well, and the Indian market has been strong in products for toll roads. We will during 2018 increase the speed, developing more products in RFID, Radar and ANPR, several of which will be launched during 2018. The acquisition of Magsys was completed on December 21 and we look positively into common business opportunities in the French market during 2018."

"Both Tagmaster and Balogh have had satisfactory Rail businesses during the quarter but ahead of us, we foresee a somewhat lower level for the quarters to come. We have started delivery of our new Railtag with 20-year lifetime. Balogh is in the final phase of a couple of product development projects which are interesting and which we expect to have a positive impact, but not until the later part of 2018".

"Our quarterly result of 7.8 MSEK (5.0) and our cash flow from the running business of 4.7 (2.0) is the best ever and very gratifying but we still have work to do and it is still worth mentioning that the variation between quarters could be significant since especially our rail business is volatile." Concluded Svensson.


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