LONDON (Alliance News) - IndigoVision Group PLC Thursday said it expects to see an improved performance in 2016 after a "difficult" year, as it reported a swing to a pretax loss for 2015.
The security system network company reported a pretax loss of USD753,000 for 2015, swung from a pretax profit of USD4.3 million a year before, as revenue dropped to USD47.1 million from USD82.5 million a year before. IndigoVision changed its year end in 2014, meaning its 2015 results are compared to a 17 month period.
This revenue drop was partly offset by reductions in operating expenses as the company took steps to try and restore its growth and improve profitability. These steps helped improve sales in the second half, which IndigoVision said were up 8% compared to the first half.
Whilst the company saw a good performance in the UK, sales fell in the Middle East following project delays and in mainland Europe. North American sales also fell, and sales declined in Canada due to reduced activity in the oil shale market.
Revenue in the Asia Pacific region fell to USD5.0 million from USD14.9 million the year before, due to lower activity in mining in Australia, increased competition in China, and large projects not repeating.
IndigoVision proposed a final dividend of 2.5 pence, compared to a 17.0p dividend paid in the comparative 17 months.
"2015 was a difficult year overall but action was taken during the first half when it became clear that markets were soft and pricing more competitive. As a result, IndigoVision returned to profit in the second half. Management in the regions has been strengthened; product strategy has been adjusted to reflect changed market conditions and we have had a better start to 2016. We therefore currently expect that 2016 will see improvements over last year," said Chief Executive Marcus Kneen in a statement.
Shares in IndigoVision were down 1.4% at 167.11 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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