IndigoVision shares plunge as first-half loss expected

SHARES in Scottish video surveillance systems specialist IndigoVision have tumbled more than 22 per cent, hit by the company’s warning it expects to record a first-half operating loss.

IndigoVision, based in Midlothian, yesterday highlighted a “slowdown” in sales in the first half of this year and cited “challenging” trading conditions in Latin America and the Asia-Pacific region. While highlighting “good growth” in the UK and mainland Europe, it also flagged delays in project spending in North America and the Middle East.

Commenting on its expectations for the six months to June 30, it told the stock market: “We are continuing to target mid-market sales channels to improve the pattern and predictability of sales and the quality of earnings. We have also reduced overhead to reflect the reduction in overall activity. However, due to the slowdown in sales in H1, we expect to record an operating loss for the first half. “

Looking ahead, it added: “We expect performance to recover in the second half but, as a result of the operating loss for H1, it is likely the full-year result will fall below market expectations.”

IndigoVision made an operating profit of $4.27 million in the 17 months to December 31, 2014.

It said in its latest update that, as indicated in its 2014 annual report, it had experienced a “subdued start” to the current financial year.

It added: “UK and Europe has seen good growth. However, trading conditions in Latin America and Asia-Pacific have remained challenging, and North America and the Middle East have also experienced delays in project spending.”

Shares ended down 75p at 263.5p.