LONDON (Alliance News) - IndigoVision Group PLC saw its shares slide Tuesday after it warned that its operating profit is set to fall short of market expectations after sales came in below hopes in its most recent quarter.
The company is currently in a 17 month financial year that will run until the end of 2014, and said it expects operating profits at constant currencies for that period to fall short of existing market forecasts.
It said sales for the fifteen months to October 31 were up 9% on the previous 15 months at GBP43.4 million. However, sales in the fifth quarter had been below its expectations as sales fell in Latin America and Asia Pacific, offsetting growth in North America, Europe, Middle East and Africa.
The IP video surveillance systems company said its gross margin for the 15 months had remained in line with that of the 12 months to end-July, and in line with expectations.
However, the Scotland-based company, which is now going to report its results in US dollars, said currency movements had a negative impact of GBP0.33 million for the 15 months to end-October.
"Although overall group sales for the fifth quarter were disappointing, the group continues to expect double digit sales growth for the 17 months to 31 December 2014, and the medium term outlook for IndigoVision remains favourable," it said.
"As a result of the lower than expected sales in the fifth quarter, the group currently anticipates that operating profits before foreign exchange movements for the 17 month period to 31 December 2014 will fall short of existing market forecasts," it warned.
IndigoVision shares were down 16.9% at 376.10 pence early Tuesday, making it the second-worst performing stock on the AIM All-Share index.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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