IndigoVision reinstates dividend as it returns to profitability

(Sharecast News) - IndigoVision reported a 9.2% improvement in its revenue in its final results on Thursday, to $50.2m (?38.83m).
The AIM-traded firm said its gross margin improved by 0.3 percentage points during the year ended 31 December, to 57.7%, while its operating profit before exceptional items was $2.0m, swinging from a loss of $0.6m in 2018.

Exceptional costs for the period totalled $0.4m, up from nil in 2018, while its net cash balance at year-end was $2.2m, improving from $2.0m.

During the year, the company secured a new $10m asset-based lending facility.

Its basic earnings per share were 22.7 US cents, swinging from lossed of 4.1 cents, while diluted earnings per share were 22.5 cents, also compared to losses of 4.1 cents in 2018.

IndigoVision's adjusted earnings per share totalled 31.5 cents for the year, compared to 2018's adjusted losses per share of 4.1 cents.

The board said it was reinstating the dividend, and proposed a final distribution of 2.0p per share.

On the operational front, the company noted the appointment of Vikki Macleod to the board in March 2019, who it said added expertise in software development.

It also appointed a new head of marketing, vice-president of product and engineering, and head of customer care and operations from outside the business during the year, as it worked to strengthen its senior leadership team.

The acquisition of AgoraSys was said to "enhance" its software product offering, as the company also launched its 'IndigoVision 2020' strategy.

It launched its 'Ultra X' camera range, complying with US NDAA 2019 requirements, and began re-engineering its core VMS software to make development "quicker and easier".

"These results demonstrate the significant turnaround that has been undertaken by IndigoVision," said chairman Max Thowless-Reeves.

"The group is now on a sound strategic, operational and financial footing.

"We have growing momentum within the business."

Chief executive officer Pedro Simoes added that in 2019, the company built on the momentum of 2018 and demonstrated "further significant progress" by delivering 9% revenue growth and returning the business to profitability.

"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."

Simoes said the company's first acquisition had brought Agora into the business, and was opening up "exciting" opportunities.

"This platform addresses the human dimension that we feel has been underinvested in by the industry and enhances the traditional end-to-end video security solution."

At 1459 GMT, shares in IndigoVision were up 14.12% at 221.4p.