Indigovision chairman hails results of shake-up
NEW Indigovision chairman George Elliott has said the Edinburgh-based video security systems specialist has been set on track for future success following a change of strategy under its new management team.
Speaking after the company’s general meeting, he said Indigovision was feeling the benefit of a shake-up that had resulted in a radical change of approach at the business.
“We are becoming much more sales and marketing focused rather than engineering driven,” said Mr Elliott.
The sales drive has involved positioning Indigovision to address a much bigger market than previously and to get better at serving customers.
Mr Elliott noted Indigovision used to be seen as an elephant hunter as it concentrated on winning big one-off contracts. The company has extended its product range to help it win business from small and mediumsized enterprises, which make up a bigger market.
Indigovision parted company with former chief executive Marcus Kneen in November and announced it expected to make an operating loss in 2017. It cited difficult trading conditions in the Middle East and unforeseen delays in securing a number of large contracts.
The company yesterday provided an indication the sales drive is bearing fruit when it said it had recorded double-digit percentage growth in sales in the first four months of the year. There has been a corresponding reduction in losses, in line with expectations.
Indigovision noted sales are expected to be weighted towards the second half of the year and the precise timing of orders is difficult to predict.
However, it added: “Current indicators support the Board’s target to at least break even in the current year.”
Mr Elliott said he was very pleased with the company’s performance in the first four months.
“We have got along way to go but we are certainly on track for what we set as the first target of at least breaking even this year, which would be an achievement.”
The improvement has set the company on track for future success, he said.
The upbeat tone contrasts with the sober note Mr Elliott struck in March after Indigovision posted a $2.8 million annual operating loss.
He said then the group’s financial performance in 2017 and prior years had not been acceptable. Indigovision was not achieving its full potential.
A former chief financial officer of Wolfson Microelectronics, Mr Elliott took over as chairman of Indigovision in July last year, when Hamish Grossart retired from the company as planned after more than 20 years on the board.
Pedro Simoes became chief executive of Indigovision in January after joining the firm as senior vice-president for global sales in October. The security industry veteran noted yesterday the efforts Indigovision had made to grow in the SME market, sharpen the appeal of its product range and to strengthen its sales operations.
Indigovision launched its Integra video storage and management product targeted at the SME market recently. It has been adding cyber security features which can protect products.
“The signs are positive but there’s a long way to go,” noted Mr Simoes.
Mr Elliott also noted efforts to sharpen the focus of activity at Indigovision. “The business was too broad,” he said, adding: “Customers found it difficult to deal with us.”
Shares in Aim-listed Indigovision closed up 5p at 117.5p.
Mr Grossart retains a 5.6% holding in the company’s shares. Swiss investment fund New Pistoia Income has 30.3%.
All resolutions at the AGM were passed comfortably.
A chartered accountant by training, Mr Elliott is also chairman of Edinburgh-based billing software firm Craneware.
We are becoming much more sales and marketing focused