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Redeye’s first comments follow this morning’s Q4 report from Tagmaster. Tagmaster showed considerably higher total growth than expected in the quarter. The main reason behind the sales beat is the improved performance in Citilog and impressive growth in the newly acquired radar business. This shows that Q3 was more of a temporary slowdown than a new trend. Besides the previous quarter, Tagmaster has shown real progress regarding sales and margins, proving that the acquisition model is working. The gross margins were lower than expected, partly due to the sturdy growth in the newly acquired radar business with lower gross margins and a technical factor regarding selling off inventory. The adjusted EBITDA margin came in roughly as expected.
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