2nd Dec 2016 08:51
LONDON (Alliance News) - IndigoVision Group PLC on Friday said it will swing to a profit in 2016, as revenue in the second half is so far running ahead of the second half of 2015 and is also higher than the first half of 2016.
The video security system designer said camera volumes are up 20% year-on-year, although this has largely been offset by lower selling prices. Price competition has "limited impact" on gross margin, IndigoVision said, as a result of the change in hardware strategy made at the start of the year.
Meanwhile, overheads remain "well controlled" and materially below last year, meaning IndigoVision is trading profitably in the second half, after losses in the first half, and expects to report a profitable outcome for the full year as a whole. In 2015, the company suffered a USD0.7 million operating loss.
IndigoVision also expects to finish the year with an improved net cash balance. Net cash was USD2.8 million in 2015.
IndigoVision added that it successfully launched its tiered Control Center video management software on November 1.
"This expansion of the software range is expected to widen the available market opportunities for the group and reduce, over time, the volatility arising from larger, project-related sales," the company said in a statement.
Shares in IndigoVision were trading down 1.7% at 153.30 pence on Friday morning.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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