Focus on core market
More top level change as IndigoVision targets return to profit
Max Thowless-Reeves: eliminating losses
Video security firm IndigoVision said it is making progress in strengthening the business and returning to profitability.
Paul Theasby, chief operating officer, will leave the company at the end of September and his role is not being directly replaced. Instead, it is intended that new roles will strengthen the leadership of the product management and R&D functions, and improve the overall customer experience.
Half-year figures for the Edinburgh company show revenues continue to grow in in core markets and operating costs remain “well controlled”.
“Over the period we have made considerable progress in strengthening specific areas of the business, though much work remains,” said the company.
The company said actions taken in 2018 to refocus its strategy continue to drive improvements throughout the business. As in previous years, sales are expected to be weighted towards the second half of the year and the nature of IndigoVision’s business is that the precise timing of customer orders is difficult to predict.
Nevertheless, the current indicators continue to support the board’s target to return the group to profitability in the current year and for the business to deliver an acceptable level of profitability from 2020.
Max Thowless-Reeves, chairman, said: “Our objective has been to eliminate losses, achieve an acceptable level of profitability and to sustain and grow profits in the long term. The return to profit in H1, the first time this has been achieved since 2014, is both an important milestone in our progress towards this objective and validation of the new strategy and execution.
“Evidence of the turnaround has been palpable inside the business for some time and is now increasingly visible in the numbers. There remains considerable heavy-lifting to be undertaken but the direction of travel and momentum in the business reflects the considerable achievements of the Board and staff to date; we remain on track”.
· Revenue increased by 8.3% to $24.1m (2018: $22.2m)
· Gross margin 57.4% (2018: 58.0%)
· Operating profit $0.4m (2018: operating loss $1.1m)
· EBITDA $1.0m (2018: LBITDA $0.7m)
· Net cash at 30 June 2019 $2.8m (2018: $2.7m)
· New three year debt facility of up to $10.0m secured
· Vikki Macleod was appointed as a non-executive director in March.
· A new head of marketing was appointed, also in March, with the aim of improving lead generation, brand awareness and market communications.
· The company has appointed a vice-president of product management and a head of customer care and operations and is seeking a new vice-president of engineering.
· During the period, the company received two large customer orders, each of which was in excess of $1m. These orders, which relate to the open space and car parking facilities in a substantial commercial building and a mass transit rail line, both in Malaysia, will be delivered over a period of up to 18 months.