Indigovision’s Asia deals see profits target stay on track

● Malaysian work sees tech business make solid start ● Continues to see return to black in this financial year

Two orders worth more than $1 million( about £780,000) each secured in Malaysia have helped technology firm Indigovision get the current year off to a solid start, the company said yesterday.

The Edinburgh-based security video specialist said the two large contracts will see its technology installed at a commercial building and a mass transit rail line in the Asian country.

The orders will be delivered over the next 18 months.

News of the deals came in a trading update ahead of the firm’s annual general meeting yesterday in which it said that in the four months to 27 April, progress had been in line with market expectations.

“As in previous years, sales are expected to be weighted towards the second half of the year and the nature of our business is such that the precise timing of our orders is difficult to predict,” it said.

“Nevertheless, the current indicators support the board’s target to return the company to profitability in the current year.”

As well as the Malaysian orders, the company has also completed the majori - ty of the planned restructuring of its supply chain. It also recently launched a camera that is compliant with new US defence legislation.

This week has seen the first production run of IndigoVision products from the group’ s main cameras upplier’s new facility in Mexico, which is intended to secure tariff-free access to the US market.

The company, which flagged cash on hand of $2.5m, said good progress has also been made on a new debt financing facility toprovi deb alance sheet flexibility with an invoice finance arrangement expected to be concluded shortly.

Chief executive Pedro Si mo es said :“The year has started positively and we are confident that 2019 will be another year of progress for the group.”

In its annual results for 2018, Indigo vision rep or te dr evenues up 9 percent to £35 mon the back of growing orders in the US. Operating losses were cut to $600,000 from $2.8m the previous year.

At the time, the group said that despite the substantial improvement, “there remains much work still to be done to return the group to an acceptable level of profitability”.

In March, Indigo Vision named a former executive at Virgin Money and Tesco Bank as a new board member. Vikki Macleod, a non- executive director of Zonal Retail Data Systems, also acts as an adviser to a number of start-up and fledgling businesses.

Mac leodwasdi rector of insurance and new partnership product development at Virgin Money between 2015 and 2017. Before that she was head of trade at Tesco Bank, responsible for home and life insurance products.