IndigoVision, the Edinburgh-based security video specialist, has hailed a “milestone” for the business after reporting a first-half profit for the first time since 2014.
Releasing results for the six months to the end of June, the firm posted an operating profit of $400,000 (£332,000) compared with losses of $1.1m a year earlier. Underlying earnings before interest, tax, depreciation and amortisation (Ebitda) topped $1m, a major turnaround from a loss of $700,000 last year.
Revenues were up 8.3 per cent to $24.1m but bosses at the company admitted that there remained “considerable heavy-lifting” to be undertaken.
Chairman Max Thowless-Reeves told investors: “Our objective has been to eliminate losses, achieve an acceptable level of profitability and to sustain and grow profits in the long term.
“The return to profit in H1, the first time this has been achieved since 2014, is both an important milestone in our progress towards this objective and validation of the new strategy and execution.
“Evidence of the turnaround has been palpable inside the business for some time and is now increasingly visible in the numbers.
“There remains considerable heavy-lifting to be undertaken but the direction of travel and momentum in the business reflects the considerable achievements of the board and staff to date; we remain on track.”
The group, which has sales and support teams in 24 countries with its headquarters in Edinburgh, said revenues continued to grow in its core markets while operating costs remain “well controlled”.
A new three-year debt facility providing financial firepower of up to $10m has been secured and net cash at the end of June stood at $2.8m, up from $2.7m a year earlier.
Looking ahead, the group noted: “As in previous years, sales are expected to be weighted towards the second half of the year and the nature of IndigoVision’s business is that the precise timing of customer orders is difficult to predict.
“Nevertheless, the current indicators continue to support the board’s target to return the group to profitability in the current year and for the business to deliver an acceptable level of profitability from 2020.”