Cash for shareholders
IndigoVision returns to profit; resumes dividend
Max Thowless-Reeves: reconstruction
Video security firm IndigoVision says it is now on a sound operational footing with revenue growth of 9% and a return to profitability.
The Edinburgh-based company, which has seen a churn of directors on the board, is now cash generative with a “robust” balance sheet and has announced a resumption of dividends, with a proposed final payout of 2p for 2019 (2018: nil).
It is considering other means of returning cash to shareholders, including a special dividend.
The company announced that an underlying $1.6m EBITDA loss in 2017 was turned into a $3.3m EBITDA profit in 2019 on revenue up 9.2% to $50.2m (2018: $46.0m). It has net cash of $2.2m.
Max Thowless-Reeves, chairman, said: “Just over two years ago a major board reconstruction was undertaken with the clear recognition that the Group’s financial performance in 2017 and indeed, prior years, had not been acceptable and that IndigoVision was not achieving its full potential.
“I am pleased to report the first set of annual results for many years that the Board deems acceptable.
“There were many excuses available for management teams in 2019 to deliver results below market expectations.
“Our executive team and staff have refused to be deflected from the mission and it is to their great credit that the most difficult part of the turnaround has been delivered despite this broadly unfavourable backdrop and that we can report resul ts in line with market expectations. “
Pedro Simoes, chief executive, added: “We are now strongly positioned, having strengthened our leadership team in the key areas of engineering, product management, marketing and customer care & operations.
“This investment is ensuring we deliver an improved focus on the customer experience across the whole business. Our first acquisition has brought Agora into the business and is opening up exciting opportunities.”