IndigoVision eyes lower losses despite sales decline

Video security specialist IndigoVision today said it was confident of reporting lower losses despite seeing its sales drop in the first half of its financial year.

Indigovision is headed by chief executive Marcus Kneen. Picture: Contributed

The Edinburgh-based firm, which provides digital CCTV systems for clients including airports, banks and casinos, said sales during the six months to the end of June came in at about $21.8 million (£16.9m), down 3 per cent on the same period last year.

“Within this, camera volumes increased markedly but this gain was offset by lower camera product margins arising from continued competitive market conditions,” IndigoVision said in today’s trading update.

“Notwithstanding the market challenges, gross margin remained broadly in line with 2015 as a whole and within the group’s normal trading range.”

Aim-quoted IndigoVision, led by chief executive Marcus Kneen, fell to a pre-tax loss of $1.26m during the first half of 2015, compared with a $1.73m profit a year earlier, following sharp sales falls across Asia Pacific and Latin America.

But today the firm said that those losses would be “largely eradicated” as it continues to benefit from efforts to reduce its overheads.

“Working capital management remains strong, with net cash of $4.6m at the period end,” it added.

IndigoVision is expected to announce its first-half results on 15 September.