17th Sep 2015 07:23
LONDON (Alliance News) - Video security systems provider IndigoVision Group PLC Thursday said it expects profitability in its second half to "comfortably" exceed its first half loss after seeing what it called "a disappointing start" to 2015.
For the half year to end-June the company reported a pretax loss of USD1.3 million, swung from a pretax profit of USD1.7 million a year before, as revenue fell to USD22.6 million from USD31.9 million. Whilst it saw a 22% rise in sales in the UK, revenue fell in Asia Pacific and in Latin America partly due to a reduction in spend by the Brazilian oil and gas market.
IndigoVision opted not to propose an interim dividend as a result of its swing to a loss, but said it expects to recommend a final dividend.
Gross margin percentage fell to 52.8% from 55.6%, as a result of differing product mix in large projects.
"As we announced in April, trading in the first half has been challenging, but Latin America and the Middle East are now starting to show an improving sales trend. The group's activity is weighted towards enterprise markets where revenues are materially impacted by project timing and the wider economic backdrop, and these factors affected the first half performance," said Chief Executive Marcus Keen in a statement.
"The group has a stronger pipeline of large projects for the second half of the year, predominantly from the Middle East and the Americas," Keen added.
Shares in IndigoVision were down 12% at 213.84 pence Thursday morning, one of the worst performers in the AIM All-Share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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