LONDON (Alliance News) - Shares in IndigoVision Group PLC plummeted on Tuesday after the company said it is expecting to report an operating loss in the first half of its financial year due to a slowdown in sales, leading to its full-year results falling below market expectations.
IndigoVision shares dropped 23% to 260 pence midday Tuesday, immediately after issuing its trading update.
The company, which produces video security systems, said it has had a "subdued" start to the year, with the UK and Europe seeing good growth while trading conditions in Latin America and Asia Pacific remain challenging. North America and the Middle East also have experienced delays in project spending, it said.
It said that revenue streams from the enterprise market are project-dependent, and so far this year the group has not yet replicated the number of large projects it won in the last financial year.
"We are continuing to target mid-market sales channels to improve the pattern and predictability of sales and the quality of earnings. We have also reduced overhead to reflect the reduction in overall activity. However, due to the slowdown in sales in H1, we expect to record an operating loss for the first half. We expect performance to recover in the second half, but as a result of the operating loss for H1, it is likely the full year result will fall below market expectations," IndigoVision said in its statement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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