• Net sales increased during the quarter by 6,8 % to 133,7 MSEK (125,3). The organic and currency adjusted growth amounted to 1,4%.
• Adjusted EBITDA increased during the quarter by 19,0% and amounted to 27,0 MSEK (22,7) corresponding to an adjusted EBITDA margin by 20,2 % (18,1).
• Operating profit was 16,4 MSEK (7,3), corresponding to an operating margin of 12,2 % (5,8).
• Profit/loss for the quarter was 14,0 MSEK (6,8).
• Result per share basic and diluted was 0,96 SEK (0,47).
• Cash flow from operating activities for the period was 11,0 MSEK (3,4).
• On November 28, 2024 TagMaster acquired 92,5 percent of the shares in the Spanish company Quercus Technologies S.L (Quercus).

January-December 2024

• Net sales increased during the year by 3,9% to 420,4 MSEK (404,7). The currency adjusted growth amounted to -8,3 percent.
• Adjusted EBITDA decreased during the year by 15,5% to 48,3 MSEK (57,2), corresponding to an adjusted EBITDA margin by 11,5% (14,1).
• Operating profit/loss was 10,3 MSEK (15,3), which correspond to operating margin of 2,5% (3,8).
• Profit/loss for the year was 4,7 MSEK (13,7).
• Result per share, basic and diluted was 0,32 SEK (0,93).
• Cash flow from operating activities for the year was 58,6 MSEK (28,5).
• The board does not propose dividends for 2024.

Comments by the CEO

The final quarter of 2024 was very strong for us, and despite a continued cautious market, we were able to deliver record figures in both revenue and profitability. Revenue grew by 6.8 percent compared to the strong final quarter of 2023, and the adjusted EBITDA result reached 27 million SEK, corresponding to a margin of just over 20 percent. This is the best individual quarter to date and demonstrates that our strategy of focusing on a combination of organic and acquired growth is successful.

At the end of the quarter, we acquired Quercus Technologies, a company that develops and manufactures advanced digital solutions for the parking industry based on AI-driven video analysis. Based in Reus, Spain, Quercus has installations in over 100 countries worldwide. Through this acquisition, TagMaster strengthens its already robust offering within parking and access digitization, while also increasing our sales to corporate customers (B2B), complementing the group’s current business, which is predominantly focused on the public sector (B2G).

With Quercus as a part of the group, combined with the strong finish to last year, we have entered the new year with expectations of both increased revenue growth and stronger results. In addition to the advantages I mentioned above, the acquisition provides us with significant opportunities for organic growth through increased cross-selling. Quercus has a strong presence in Germany, Spain, and Australia, while our main strengths have previously been in the USA, the UK, and France. Together, we can sell our respective solutions in new markets and offer a broader range of products and AI-driven solutions to our global customers.

We also see that our second-to-last acquisition, the radar business (RTMS) that we acquired from the American company Image Sensing Systems (ISS) during the third quarter of 2023, continued to perform well also in the fourth quarter, with a growth of approximately 26 percent compared to the same period in 2023. Through this acquisition, we have strengthened our offering and can deliver both sensor solutions for ground installations and a series of high-performance radar-based sensor solutions for above-ground installations.

Looking ahead, I can state that TagMaster is well positioned to contribute to solutions for some of the major challenges facing the world’s transportation systems. These challenges include solving traffic problems such as congestion in densely populated areas worldwide, increasing traffic safety, preventing accidents, and reducing emissions from traffic. This means that demand for our solutions will increase as necessary decisions on infrastructure investments are made across large parts of the world.

Our leading technical expertise in all relevant technologies in the field positions us well to meet the growing demand for multisensor solutions. Following the acquisition of Quercus, the group now has a total of 60 development engineers, 30 of whom focus on further developing AI-based video solutions. We therefore see significant potential in continuing to develop both new products and our sales, both in the U.S. market and through our global partner network. During the quarter, we continued to invest in the sales organization and further integration of our operations with the aim of better scaling our commercial offering.

To leverage on our leading technical expertise and drive organic growth, significant investments are being made in product development. Therefore, in the fourth quarter, the investment in product development amounted to approximately 15 percent of the group’s revenue.

The group’s sales for the fourth quarter amounted to SEK 133.7 million, an increase of 6.8 percent compared to the same period in 2023. The organic revenue change for the quarter, adjusted for currency effects and acquisitions, amounted to SEK 1.7 million, corresponding to an increase of 1.4 percent. Costs were higher compared to the fourth quarter of 2023, as the newly acquired Quercus is included from December, along with higher personnel costs related to our investments in increased sales resources.

For the full year 2024, revenue totaled SEK 420.4 million, an increase of 3.9 percent compared to 2023. The organic and currency-adjusted change amounted to a decrease of 8.3 percent. Adjusted EBITDA for the full year was SEK 48.3 million, corresponding to a margin of 11.5 percent, which is 2.6 percentage points lower than in 2023. Our Traffic Solutions business in the fourth quarter amounted to SEK 110.9 million, an increase of approximately 6 percent compared to the same quarter in 2023. During the quarter, Traffic Solutions accounted for 83 percent of sales, while Rail Solutions accounted for 17 percent.

The adjusted gross margin at group level for the quarter was 70 percent (66.7), with an adjusted EBITDA result of SEK 26.9 million, corresponding to an adjusted EBITDA margin of 20.2 percent. Cash flow from operating activities amounted to SEK 11 million, and the group’s solvency ratio was 51.3 percent at the end of the period.

The focus on reducing working capital, primarily inventory levels that increased during previous component shortages, continues to be a focus. Sequentially, inventory has decreased by just under 7 percent, and compared to the same quarter last year, it has decreased by just over 29 percent.

TagMaster is currently well positioned in a market with strong long-term growth prospects and good profitability, and we are committed to continuing to make TagMaster a leading company in Intelligent Transportation Solutions (ITS).

Jonas Svensson, CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Financial calendar

March 27, 2025: Annual Report 2024 available on web site
April 24, 2025: Annual general meeting, Kista
April 24, 2025: Interim report first quarter 2025
July 18, 2025: Interim report second quarter 2025
October 23, 2025: Interim report third quarter 2025
February 5, 2026: Earnings release 2025

This report and previous reports and press releases are found at the company home page www.tagmaster.com