Loss for half year
Elliott reports ‘considerable progress’ at IndigoVision
Chairman George Elliott (pictured), who earlier this year blasted the Edinburgh company’s performance, said actions continue to be taken to drive improvements in the business.
A change of CEO was announced with the full year results in March alongside a new leadership strategy after Mr Elliott said performance had “not been acceptable”.
Today the company unveiled an operating loss of $1.1m for the six months ended 30 June (2017: $0.7m), and Mr Elliott said: “I am pleased to report that considerable progress has been made in the period in delivering the company’s strategy as set out last year.
“In particular, we have added new functionality to our core technology and introduced a number of new products.
“The sales team has been strengthened and is gaining traction, we have improved our operational capabilities and our marketing efforts have focused on our increasingly innovative technology.
“The group’s reporting structures have been streamlined to focus on a performance driven culture and key deliverables.”
Pedro Simoes, delivering his first results since taking over as chief executive in January, said: “Almost a year since joining the group, I remain enthused by the opportunities within our business.
“I am particularly pleased with the pace of technology innovation across the group. Recent regulatory changes in the US confirm the need to maintain a competitive advantage and strategic relationships in our supply chain, something I believe IndigoVision is well-placed to capitalise on.”
Speaking to Daily Business, Chief financial officer Chris Lea said he believed the company was on track to break even this year.
“The results are weighted towards the second half,” he said.
He added that the board had not spoken to Swedish investor Peter Gyllenhammar since he acquired a 3% stake in the business last month, prompting a spike in the share price.
“I do not know what his intentions rare,” he said. “We are speaking to investors today and we have offered him a meeting.”
Mr Simoes, commenting further on the improved performance, added: “The changes began six months ago and we are in a better place.”
Revenue increased by 9.5% to $22.2m (2017: $20.3m1)
Gross margin 58.0% (2017: 51.5%)
Increased investment in R&D and the global sales team
Operating loss $1.1m (2017: $0.7m)
Net cash at 30 June 2018 $2.7m (2017: $4.9m)
No dividend declared