LONDON (Alliance News) - IndigoVision Group PLC Wednesday said pretax profit rose in the 12 months to end-July, as it grew strongly in North America, Europe and Asia Pacific, and the Edinburgh-based business said it would implement "well developed plans" if the Scottish electorate votes to leave the UK in Thursday's referendum.
The Scottish referendum result is currently too close to call, according to the most recent polls, and many businesses have been citing concerns about the uncertainty that the vote is causing. Some have pledged to move headquarters to England if the Scots vote to leave the union, because they want to be covered by current UK regulation and the UK's financial system and its more certain tax regimes and protection mechanisms.
IndigoVision didn't detail its plans in the event of a vote to leave the union, but said it had benefited from being considered a British company.
"We are in no doubt that IndigoVision, with a world leading range of products utilised in key security installations globally, benefits from being recognised the world over as British, and has the invaluable support of the superb network of British embassies and trade organisations overseas. Should the Scottish electorate vote to leave the United Kingdom, we are ready to implement well developed plans to protect IndigoVision's business and the interests of stakeholders," it said in its earnings statement.
The video security systems company is growing quickly across the world. It posted a pretax profit of GBP2.4 million for the 12 months to July 31, up from GBP2.1 million in the previous 12 months, as revenue rose 16% to GBP37.2 million, from GBP32.0 million. Its gross margin improved to 57.6%, from 56.7%, even though operating costs were driven up by the development of the company's sales and distribution network.
Revenue growth was strong in all geographies, IndigoVision said, with sales up 23% in Asia Pacific, up 23% in Europe, The Middle East and Africa, and up 17% in North America in local currency terms. Growth was slower in Latin America at 3%.
The company mainly prices its products in US dollars and its costs are also mainly in the US currency, so it was hit by the strength of sterling when those were translated into its reporting currency. It said total revenue would have been up 20% at constant currencies.
IndigoVision is moving its year end to match the calendar year, meaning that its results are considered to be "second interim" results, rather than full year. It proposed a second interim dividend of 6 pence per share, which when combined with its first interim dividend of 6 pence, brings its total for the year so far to 12 pence, up from 11.0 pence in the comparative period.
It expects to recommend a final dividend along with its results for the 17 months to end-December 2014.
The company was positive about its outlook, saying it expects to report a good performance in its new full year. The final five months of that year has started well, it said.
"It therefore seems likely that the excellent progress in the last twelve months has been the beginning of a more sustained period of growth and we look forward to the future with a sense of confidence," said Chairman Hamish Grossart in a statement.
Shares in IndigoVision were trading up 5.5% at 480.00 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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