SHARES in IndigoVision surged by as much as 15 per cent yesterday after the Edinburgh-based CCTV systems maker revealed its operating profits will be at least double last year’s total.
Chairman Hamish Grossart heaped praise for the turnaround in the firm’s fortunes on Marcus Kneen, who replaced founder Oliver Vellacott as chief executive in December following a boardroom coup.
His departure sparked a tentative takeover approach by Vellacott and Scottish Equity Partners, which is understood to have been at about 400p a share.
Aim-quoted IndigoVision closed up 22.5p, or 7 per cent, at 345p last night, having slipped from a 52-week high of 395p touched in March following record interim operating profits.
In a trading update ahead of its full-year results, the firm yesterday said turnover would be up 5 per cent year-on-year to more than £30 million, while operating profits would double to at least £2.6m.
Grossart said: “The return to double-digit levels of sales growth in the second half and the strong recovery in operating performance have happened somewhat faster than we expected a few months ago, and is directly attributable to the energy and effort being put in by the management team.
“IndigoVision is an excellent business operating in a growing market and the opportunity is there to grow it further.”
Kneen and Holly McComb, who succeeded him as chief financial officer, have brought forward the introduction of fresh products, improved quality control and changed the firm’s management in certain countries following a review of the business.
IndigoVision – which makes CCTV systems for airports, casino, ports and other sites – has also controlled its costs and improved its margins.
Vellacott, who set up the business in 1994, still holds a 23 per cent stake in the business.
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