IndigoVision narrows losses despite tough competition
IndigoVision, the Edinburgh-based video security specialist, has overcome 'highly competitive' market conditions to report a sharp reduction in first-half losses.
The Aim-quoted firm, headed by chief executive Marcus Kneen, said revenues for the six months to the end of June fell 3.5 per cent to $21.8 million (£16.5m) as camera prices across the market fell in response to “substantial” price cuts by a number of manufacturers in the Far East.
However, its camera volumes grew 20 per cent, driven by strong growth in healthcare, education, finance and “safe cities” projects in the Middle East.
Although IndigoVision racked up $102,000 of redundancy costs in the first half following its decision to stop making its own range of cameras, an overall 8 per cent reduction in overheads helped the company’s operating losses narrow to $275,000 – down from $1.3m a year earlier.
Kneen said: “The results for the first half of 2016 are a strong improvement on 2015, notwithstanding falling camera prices across the market as a whole.”
Chairman Hamish Grossart added: “After a quiet start to 2016, the group experienced an improving trend in financial results as the first half progressed.
“The pipeline of large projects for the second half is stronger than the first half and, although market conditions remain highly competitive and the timing of a number of customer projects remains uncertain, the group currently anticipates a satisfactory operating result for the year as a whole.”
Although no interim dividend was declared, IndigoVision said its board expects to recommend a final payout for the year when its annual results are published.