As an application-based technology firm, TagMaster both develops and sells advanced identification systems and innovative solutions in order to improve efficiency, safety and convenience, and to reduce environmental impact in Smart Cities. The systems and solutions are based on radio, radar and camera technologies. Specifically, the technologies used are Automatic Number Plate Recognition (ANPR) and Radio-frequency identification (RFID). TagMaster operates within the two business areas, Traffic Solutions and Rail Solutions, with the UK, Europe and the US as main geographical sales regions.
Further investments by public authorities within intelligent traffic solutions, as well as public transportation, will keep driving the demand for TagMaster's application products. Moreover, continuing with the previous success of acquiring targets, which are operating in areas close to where TagMaster itself appears, at low multiples. These acquisitions have previously provided a good opportunity for synergies when the targets are well integrated into the group, and similar acquisitions will drive further growth.
The underlying risks of integration issues after acquisitions are always present, especially since targets are historically under financial distress. Moreover, the risk of not finding new targets to acquire at a fair price could lead to a slower growth pace for TagMaster. Not generating new technical products and solutions in the growing ANPR and RDID markets with tough competition is another key risk.