IndigoVision, the Edinburgh security video specialist, has seen annual turnover push through $50 million (£38.5m), after a 9 per cent year-on-year increase.
In a brief trading update, the group told investors that sales for the financial year ended 31 December were $50.1m. It noted that gross margins were in line with the prior year, and with “strong cost control” the firm expects to report operating profit and earnings before interest, tax, depreciation and amortisation (Ebitda) in line with market expectations.
Following the drawdown of $2.7m from a new banking facility to fund the acquisition of Portuguese software specialist AgoraSys, which was announced in November, net cash in hand at the end of 2019 was $2m.
The group is scheduled to release its full-year results on 5 March.
IndigoVision sealed the multi-million-euro acquisition of AgoraSys in a deal it described as “an important building block” in its growth plan.
AgoraSys – a spin-out from the University of Lisbon – provides a “command and control” software platform that can bring together different security systems, including IndigoVision’s video management software.
The Lisbon venture generated revenues of €1.3m for the year ended 31 December and an operating profit of €100,000. The business had net assets of €100,000 as of the end of 2018. IndigoVision said it was paying €2.3m in cash to clear the firm’s debts.
IndigoVision said that over the next year it intended to invest some €500,000 in developing the software for the benefit of its customers. AgoraSys will only become a “material contributor” to the group’s financial performance following completion of a transitional period and investment phase.
In August, IndigoVision hailed a “milestone” after reporting a first-half profit for the first time since 2014.