Dividend proposed by tech firm
IndigoVision returns to profit in ‘difficult year’
The Edinburgh-based maker of video security systems reported an operating loss of £525,000 [2014: 17 months operating profit: £3.03m] in the year to the end of December.
A first first half operating loss of £890,000 was transformed into a second half operating profit £369,000.
The board said that in view of the return to operating profitability in the second half, and the improved cash balances, it is recommending a final dividend of 2.5p per share which is “comfortably covered by second half earnings”.
The final dividend, if approved, will be paid on 26 May.
In a statement the company said: “The board considers that the discipline of paying dividends to shareholders is positive for the business and its planning. However, it is board policy to relate dividends to earnings and for that reason, no interim dividend was paid in respect of the six months to 30 June 2015, which was loss making.”
Marcus Kneen (pictured), chief executive, commented: “2015 was a difficult year overall but action was taken during the first half when it became clear that markets were soft and pricing more competitive.
“As a result, IndigoVision returned to profit in the second half. Management in the regions has been strengthened; product strategy has been adjusted to reflect changed market conditions and we have had a better start to 2016. We therefore currently expect that 2016 will see improvements over last year.”
Chairman Hamish Grossart said: “2015 was a difficult year overall for IndigoVision. Results improved as the year progressed – second half sales were 8% higher than the first half – and second half operating profits were $0.52m, compared with an operating loss of $1.26m in the first half. However, the year as a whole was loss making.
“During the first half, a series of actions were implemented designed to restore growth and profitability and these have shown some early signs of success in the second half results, although further improvement is still required.”