IndigoVision in profit, but sales disappoint

Edinburgh-based security camera company IndigoVision said its sales were lower than it expected in the second half of this year, mainly due to the delay of a project in the Middle East.

The company’s share price fell almost 9%.

In a trading update, IndigoVision said however that it returned to profit in the second half of 2015.

Operating profits for the six months to December 31 are expected to be more than $500,000 after a first half operating loss of $1.3m.

“The year on year sales decline of 29% reported for the first half slowed, and is expected to be approximately 18% in the second half,” said the company.

“Sales in the second half were lower than anticipated, principally due to a delay to a project in the Middle East.

“The action taken in the first half in relation to operating costs meant that operating profitability was restored in the second half notwithstanding lower sales.”

IndigoVision said that “focused working capital management” is expected to result in net cash balances exceeding $2 million at December 31, a material improvement over the net debt of $500,000 reported at the half year end.

IndigoVision’s full year results for the year to December 31 are expected to be announced on March 3.