Shares of Edinburgh-based video security company IndigoVision fell 27% after it said Marcus Kneen “has resigned from the board and has ceased to be chief executive officer with immediate effect” after 14 years with the firm — and said the company would make an operating loss for the year.
Pedro Simoes, who was appointed IndigoVision’s senior vice president – global sales on October 2, 2017, has been appointed interim chief executive officer.
IndigoVision’s full statement read: “There are several important trading weeks before the end of the group’s financial year on 31 December, but it is now clear that management’s expectations will not be achieved and that a full year operating loss will be reported,” said IndigoVision.
“The management and sales team changes in the US are showing continued signs of delivery, with further growth in the sales pipeline, but the Middle East has experienced more difficult trading conditions, with unforeseen delays in securing a number of large contracts.
“Current expectations are that revenue for the year will be in the region of $41 million to $43 million.
“Gross margins for the year are likely to be a little ahead of those achieved last year and total overheads are expected to be around 5% higher than last year, due principally to the investment in the US described within the interim results statement.
“The financial position of the group remains strong, with current cash balances of $2.5 million and bank facilities of $4 million which remain undrawn.
“Marcus Kneen has resigned from the board and has ceased to be chief executive officer with immediate effect.
“The board would like to thank Marcus for his contribution to IndigoVision over the last 14 years.
“Pedro Simoes, who was appointed as senior vice president – global sales on 2 October 2017, has been appointed as interim chief executive officer and will join the board as an executive director as soon as practicable, subject to the completion, by N+1 Singer, of the necessary regulatory due diligence.
“A further announcement confirming Pedro Simoes’ appointment to the board, including the necessary regulatory disclosures, will be made as and when appropriate.”
IndigoVision issued a statement later on Friday saying that Simoes bought 15,000 ordinary shares in the company for £1.20 per share.