IndigoVision's investment in sales pays off

Published on Wednesday 12 March 2008 20:34

INDIGOVISION, the Edinburgh-based digital video specialist, is set to record annual revenues of £20 million after "significant" investment in its sales and management team paid off in the first half.

Releasing results for the six months to the end of January, the group said revenues had risen by 48 per cent to almost 9.2m. At the pre-tax level, profits leapt 251 per cent to just under 1.3m.

Chief executive Oliver Vellacott, who founded IndigoVision in 1994 after earning a doctorate from Edinburgh University, said the firm would continue to focus on bolstering its sales team and attacking new territories.

The Aim-listed group slashed its headcount a few years back after switching from technology licensing to become a creator of closed-circuit TV systems which deliver video directly to monitoring stations via internet protocol (IP).

It has since rebuilt staff numbers and currently employs about 110 people, including some 70 staff at its Edinburgh base.

"We have experience growth all over the place," Vellacott said. "The UK is our strongest market at the moment, followed by northern Europe. Hot areas in the US include casinos and retail."

A typical in-store installation would involve about 100 cameras, Vellacott noted.

City forecasts are for full-year sales of about 20m. However, there was some weakness in IndigoVision's share price yesterday – down 7.5p at 842.5p at close of play. The group said it was seeing some signs of slower spending by corporate end users, with some economies "at risk of recession".

But Vellacott added: "There's plenty of talk of the credit crunch and people delaying spending. However, we've yet to see what real impact, if any, that is going to have on us."

Chairman Hamish Grossart said the group would "continue to invest carefully for future growth".

IndigoVision has a market value of about 60m.