Changes 'taking effect'

Elliott steps aside as IndigoVision cuts annual losses

George ElliottGeorge Elliott has handed over the chairmanship of IndigoVision, the Scottish video security firm, after reporting a turnaround in performance.

Mr Elliott noted in today’s annual results statement that last year he blasted performance as “not acceptable” and instigated a shake-up of the management team.

He said the change of leadership undertaken in 2017 “was designed to reverse this and it is taking effect.” Pre-tax losses have fallen from $2.8m to $0.6m.

He added: “There is a high pace of internal change and momentum is building throughout the group. This momentum has been reflected in the significantly improved operational performance in 2018 and is expected to continue into 2019 and beyond.”

The new chairman is non-executive director Max Thowless-Reeves who takes over with immediate effect.

Mr Elliott said: “The last eighteen months have seen substantial changes in the board, which have in turn driven rapid and far-reaching changes in both the strategic direction and operation of the business.

“The board recognises the need to provide additional support to the executive management team. I am therefore pleased to confirm that one of my fellow non-executive directors, Max Thowless-Reeves, has agreed to dedicate additional time to the affairs of the group and will become chairman with immediate effect.

“Unfortunately, my other business commitments do not allow me to devote the necessary time to undertake this role, but I will remain as a non-executive director of the company.”

Martin Pengelley is also retiring at the forthcoming AGM and the board expects to announce his replacement is expected shortly.

Financial highlights

  • Revenue up 9% to $46.0m (2017: $42.1m as restated for IFRS 15)
  • Gross margin increased by 3.4% to 57.4%, driven by increased software sales
  • Operating loss $0.6m (2017 loss: $2.8m)
  • Underlying operating loss $0.6m (2017: Underlying operating loss1 $2.4m)
  • Net cash balance of $2.0m at 31 December 2018 (2017: $2.6m)
  • Basic and diluted loss per share 4.1 cents (2017: loss per share 34.9 cents)
  • Adjusted loss per share 4.1 cents (2017 adjusted loss per share2: 29.6 cents)
  • No final dividend proposed (2017: nil) 

Operational highlights

  • Key US market sales growth 20%
  • Authorised resellers increased by 10% and new value added reseller channel established
  • Launch of Integra, all-in-one appliance aimed at the SME market
  • Replacement Ultra camera range launched and new camera supply sources currently under development
  • Max Thowless-Reeves replaces George Elliott as chairman, with Mr Elliott remaining as a non-executive director
  • Martin Pengelley to retire from the board at the forthcoming AGM

Pedro Simoes, Chief Executive, said: “I am pleased with the progress we have made to date, in strengthening our sales team, growing our customer base and opening up a new value added distribution channel.

“The launch of a number of new products has helped reposition the business and facilitate growth. In 2018, our software revenues grew by approximately one quarter year-on-year and we continue to seek out new technology partnerships to bring value to our customers through IndigoVision’s Control Center video management software.”

1 Underlying operating loss represents operating loss of $2.8m prior to the exceptional compensation and settlement costs of $0.40m

2 Adjusted loss per share is based on the 2017 loss after tax of $2.6m prior to the exceptional compensation and settlement costs of $0.40m

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