Lower margins hit IndigoVision profits

CCTV systems maker IndigoVision has reported a 26.6 per cent drop in first-half profits as lower margins offset a rise in sales.

The Edinburgh-based firm posted a pre-tax profit of £952,000 for the six months to 31 January, down from £1.3 million a year earlier, although revenues grew 11 per cent to a record £16.1m, with the growth accelerating to 15 per cent in the second quarter.

Chief executive Marcus Kneen said: “We set ourselves the task of returning the business to better rates of growth, and accelerating sales indicate that we are on target to achieve that.

“We currently expect record sales for the year as a whole. Notwithstanding lower margins and the additional spend on sales and new product development, we also currently expect the operating outcome for the year as a whole to better last year’s strong result.”

IndigoVision said shareholders will receive an interim dividend of 5.5p a share, up 10 per cent on last year.