Indigovision shares hit despite US success
Indigovision, the Edinburghbased digital CCTV developer, saw its shares slide yesterday after it reported wider operating losses.
The group, which supplies security systems for the likes of casinos, banks and airports, also reported a fall in first-half revenues, to $20.4 million (£15m) from $21.8m a year earlier, despite an increase in camera volume sales.
Operating losses for the six months to the end of June came in at $700,000, against $300,000 the year before, after the firm ramped up investment in its US operations.
On a brighter note, overheads fell by 6 per cent to $11.2m despite the investment in the US, while net cash rose to $4.9m from $4.6m, “reflecting strong focus on working capital”.
The company will not be paying out an interim dividend in light of the losses.
It said that said while camera sales rose, they realised a lower average selling price, though the rate of decline “reduced substantially from that experienced in previous years”. Revenues were also impacted by currency movements.
The firm highlighted several new project wins during the period, including several casinos in North America and number of “safe city” projects in Latin America.
Chief executive Marcus Kneen said: “During the first half of 2017, Indigovision has been executing on our strategic objectives to grow North American revenues and, through innovation, differentiate our product offering.”
Shares in the group closed down 20 per cent at 199p.