Press release
Record high gross margin and strong development for Traffic Solutions segment
July-
- Net sales increased during the quarter by 0,4 % to 86,9 MSEK (86,5). The organic and currency adjusted growth amounted to -4,1 %.
- Adjusted EBITDA increased during the quarter by 110,5 % and amounted to 11,0 MSEK (5,2) corresponding to an adjusted EBITDA margin by 12,6 % (6,0).
- Operating profit/loss was 0,2 MSEK (-2,6), corresponding to an operating margin of 0,3 % (-3,0).
- Profit/loss for the quarter was 0,2 MSEK (-4,5).
-
Result per share basic and diluted was
0,01 SEK (-0,31). - Cash flow from operating activities for the period was 4,1 MSEK (-16,6).
-
On
August 31 stTagMaster , through its US subsidiarySensys Networks , acquired the radar division (RTMS) from Image Sensing Systems (ISS). The purchase price was 4,8 MUSD (51,5 MSEK).
January-
- Net sales increased during the nine-month period by 10,0 % to 279,5 MSEK (254,0). The organic and currency adjusted growth amounted to 3,8 %.
- Adjusted EBITDA increased during the period by 180,7 % and amounted to 34,5 MSEK (12,3) corresponding to an adjusted EBITDA margin by 12,3 % (4,8).
- Operating profit/loss was 8,0 MSEK (-9,7), corresponding to an operating margin of 2,8 % (-3,8).
- Profit/loss for the period was 6,8 MSEK (-13,8).
-
Result per share basic and diluted was
0,47 SEK (-0,94). - Cash flow from operating activities for the period was 25,1 MSEK (-7,9).
Amounts in TSEK | 2023 July-Sept | 2022 July-Sept | 2023 Jan-Sept | 2022 Jan-Sept | R12M Oct-Sept | 2022 Full Year |
Net sales | 86 896 | 86 543 | 279 451 | 254 002 | 384 053 | 358 603 |
Net sales growth, % | 0,4 | 8,2 | 10,0 | 4,4 | 13,8 | 9,7 |
Gross margin, % | 73,1 | 67,6 | 71,6 | 68,2 | 70,8 | 68,3 |
Adjusted EBITDA | 10 979 | 5 215 | 34 512 | 12 293 | 49 189 | 26 970 |
Adjusted EBITDA margin, % | 12,6 | 6,0 | 12,3 | 4,8 | 12,8 | 7,5 |
Equity ratio, % | 59,9 | 56,1 | - | - | - | 60,9 |
Cash flow from operating activities, MSEK | 4,1 | -16,6 | 25,1 | -7,9 | 26,3 | -6,7 |
Net debt/EBITDA, R12M | - | - | - | - | 1,0 | 0,8 |
Number of employees at end of period | 118 | 125 | - | - | - | 120 |
Comments by the CEO
During the third quarter, we received further evidence that our strategic investment in the Traffic Solutions area is the right way to go. Revenue for Traffic Solutions increased by approximately 7 percent compared to the same period last year and accounted for 90 percent of the group's total revenue. To further increase the pace, we completed an acquisition within Traffic Solutions during the quarter, when our American operations acquired the radar business from Image Sensing Systems (ISS).
The good development for Traffic Solution was achieved despite that a couple of major customer projects within
One reason for the good development is that the availability of materials has improved during the quarter and that lead times for critical electronic components are decreasing, which improves our delivery capability. However, prices are still at high levels.
Our growth strategy within Traffic Solutions consists partly of organic growth, partly through carefully selected acquisitions according to a model where we prioritize certain selected technology areas. During the quarter, we acquired the radar business from Image Sensing Systems (ISS) via an asset purchase where we obtain all assets related to the ISS radar division.
Through the acquisition, we strengthen our American operations' offering by being able to offer both sensor solutions for ground installation and a series of high-performance radar-based sensor solutions for installation above ground. We will therefore be better positioned to meet the growing demand for multi-sensor solutions. We see great potential in continuing to develop both the products and sales in the US market, also through our global partner network outside the US.
During the quarter, we continued to invest in the group's joint sales organization and with the work to further integrate our operations. By building ONE TagMaster, we simplify and speed up processes with the aim of being able to better scale up our commercial offer within our various sales units. In concrete terms, it is about integrating CRM systems and our marketing, developing our sales effort and spending more time with our prospective and existing customers both digitally and physically.
The group's turnover during the third quarter amounted to
The gross margin at group level landed at 73.1 percent with an adjusted EBITDA result of
Our stock has decreased sequentially somewhat during the quarter, but including the acquisition of ISS radar operations, it has increased by approximately 37 percent. Accounts receivable have marginally decreased during the quarter and are at a lower level compared to the same period in 2022. The work to reduce the working capital has continued focus.
Today,
CEO
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This report has been reviewed by the company auditor.
Financial calendar
Week 13 2024: Annual Report 2023 available on web site
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