IndigoVision eyes return to profit despite weaker sales

Video security specialist IndigoVision today said its sales had fallen short of hopes during the second half of the year.

IndigoVision clients include airports, banks and casinos

However, the Edinburgh-based firm, which fell into the red in the first six months of 2015, told investors it had delivered a second-half profit.

In a trading update, the Aim-quoted company, led by chief executive Marcus Kneen, said operating profits for the six months to 31 December are expected to exceed $500,000 (£336,000) – that would compare with its first-half pre-tax loss of $1.26m.

“The year-on-year sales decline of 29 per cent reported for the first half slowed, and is expected to be approximately 18 per cent in the second half,” IndigoVision said.

But it added: “Sales in the second half were lower than anticipated, principally due to a delay to a project in the Middle East. The action taken in the first half in relation to operating costs meant that operating profitability was restored in the second half notwithstanding lower sales.”

The company also said that “focused working capital management” should help result in its year-end net cash balances exceeding $2m, a “material improvement” over the net debt of $500,000 reported at the end of the first half.

IndigoVision, which provides digital CCTV systems for clients including airports, banks and casinos, is expected to announce its annual results on 3 March.