IND.L Regulatory News (IND)

22 Mar 2005 07:00

IndigoVision Group PLC22 March 2005 22 March 2005 INDIGOVISION GROUP PLC Results for the six months to 31 January 2005 First half financial highlights: • Revenues increased by 77% to £1.3m• Gross profit margin increased from 46% to 56%• Loss before tax reduced from £1.6m to £1.2m• Loss per share reduced 29% to 15.5p• Net cash of £1.9m First half operational highlights: • Expanded N American team in support of sales increase of 316%• Expanded EMEA sales team to support sales increase of 37%• Sales representatives established in India, Malaysia, Singapore and Thailand• Successful completion of 2004 Athens Olympics project• Significant new projects secured in the last six months include: • 3 major rail systems in N America and Europe • 12th airport project worldwide • Monitoring of national TV broadcast for the advertising industry Oliver Vellacott, Chief Executive Officer, said: "We are at the forefront of IP Video, providing complete solutions that enableour partners to deploy sophisticated video management systems for largeenterprises. The success of the product range is showing through in the salesgrowth rates being achieved in key markets." ENQUIRIES: IndigoVision plc Oliver Vellacott (CEO) 0131 475 7200 Marcus Kneen (CFO) INDIGOVISION GROUP PLC Results for the six months to 31 January 2005 Chairman's Statement The last six months has seen strong growth in sales and gross margin as a resultof further market leading developments to the product range and of growth in thesales team. The market for IP Video continues to grow at an increasing rate andthe quality of sales enquiries augers well for the long-term future ofIndigoVision. Results Turnover for the six months to 31 January 2005 increased by 77% to £1.3m (20043/4£0.7m). Gross margin increased to 55.7% (20043/446.5%) and product revenueincreased to 99% of turnover (20043/497%). The geographical split of revenues was Europe, Middle East and Africa: 61% (20043/4 80%), N. America: 33% (20043/4 14%) and Asia: 5% (20043/4 6%). N Americaachieved year on year growth of 316%, Asia 41% and Europe, Middle East andAfrica 37%. Year on year operating costs were reduced by 5% to £1.9m (20043/4£2.0m).However within overhead is a shift in resource in support of sales and futuresales growth including an increase in headcount from 42 to 50. The net cash position at 31 January 2005 was £1.9m (20043/4£4.2m). Product developments The development of IndigoVision's "Control Center" continues with two releasesin the last six months. Control Center is a highly scaleable application thatallows local and remote control of any CCTV system, from an entry-level systemwith a small number of cameras, to a large installation with hundreds ofcameras. In conjunction with IndigoVision's compression and transmission technology andits Networked Video Recorder (NVR), Control Center provides a complete solutionfor digital CCTV. Highlights of the product are: • Control Center enables local and simultaneous remote monitoring, viewing and recording across multiple sites, regardless of geographical location. • Control Center works with other 3rd party analog-based CCTV components, e.g., cameras, monitors, keyboards and PTZ units. • Control Center can be used to quickly analyse thousands of recordings using motion, time and camera search criteria, saving valuable incident search time. • Control Center supports advanced motion detection which directs operators towards possible incidents • Recordings from up to 16 cameras can be played back simultaneously. • Site databases can be created automatically for pre-configured systems. • Up to 50 live video streams can be viewed from one PC, in two windows using dual head monitors. • Live and recorded video can be viewed at the same time. • Control Center authenticates access control per user to every camera. • Once recorded, video cannot be altered, ensuring the audit trail is intact for evidential purposes. • The IndigoVision architecture means that cameras, recorders and viewing platforms can be placed in completely separate locations, allowing recordings to be stored in a secure room, or even offsite. • Several users can simultaneously view, manage and record across the network from any point on that network. Multicast technology allows limitless numbers of users to access video and audio streams using the same bandwidth as one user. • Network security: 8000 1-input transmitters / receivers have a built-in firewall which can be configured to restrict communication to specific users. • Synchronized clocks: use of the Network Time Protocol (NTP) allows for central maintenance and synchronization of real-time clocks inside IndigoVision 8000 devices. 2004 Olympics The most significant application to have been completed over the six months to31 January was the security system for the 2004 Athens Olympics. IndigoVisiontechnology provided a digital transmission backbone that formed the basis of oneof the largest ever IP Video CCTV infrastructure projects implemented anywherein the world. The requirements for the CCTV system were very demanding. There were 63 commandcentres with 1250 operators, monitoring 47 venues spread out over an area of 250square kilometres. It was clear from the beginning that traditional CCTV systemswould not meet these requirements. IndigoVision's tried and tested MPEG-4technology was chosen as the principal CCTV component after an exhaustive 6month technical evaluation started 18 months ago. The 1250 operators worked for many different agencies. Law enforcement,emergency services, military, traffic management, coastguard and local securityall required access to all or part of the system and so every operator had to begiven unique access rights to particular components. For example, while localusers may only have access to local cameras, higher authorities required accessto the whole system. What was critical, though, was that any user could, ifpermissions allowed, have access to any camera or any recording from anywhere inthe entire system. This ensured control could be transferred to any of the othercenters should any command center become inoperative. This application would have been impossible to implement using analog CCTV, andillustrates the power of IP Video and IndigoVision's technology. Current trading and outlook Turnover for the first half of our reporting year has increased compared withlast year as the IP Video market gains momentum. We expect turnover to continue to grow as the additional sales resource takeseffect. Continued focus on cost control and elimination of non-core expenditureis keeping the business on track for achieving targeted 2005 overheads of £4m(2004: £4.0m). The Board remains confident that IndigoVision is well placed with strongtechnology to benefit from an increasing market shift from analogue to IP Videoproducts, and expects the Group to move closer to breakeven during the currentfinancial year. HAMISH GROSSARTChairman21 March 2005 Consolidated profit and loss accountFor the 6 months to 31 January 2005 Note 6 months to 31 6 months to 31 Year to 31 January 2005 January 2004 July 2004 Unaudited Unaudited Audited £000 £000 £000 Turnover 1,285 727 2,255 Cost of sales (569) (389) (1,074) Gross profit 716 338 1,181 Research and development expenditure (777) (728) (1,502)Other administrative expenses (1,168) (1,312) (2,463) Operating loss (1,229) (1,702) (2,784) Interest receivable and similar income 68 85 162Interest payable and similar charges (1) (2) (35) Loss on ordinary activities beforetaxation (1,162) (1,619) (2,657)Tax on loss on ordinary activities 87 111 293 Retained loss for the period (1,075) (1,508) (2,364) Loss per ordinary share 3Basic & diluted loss per share (15.53p) (21.79p) (34.16p) Consolidated statement of total recognised gains and lossesFor the 6 months to 31 January 2005 6 months to 31 6 months to 31 Year to 31 January 2005 January 2004 July 2004 Unaudited Unaudited Audited £000 £000 £000 Loss for the period (1,075) (1,508) (2,364) Loss on foreign currency translation (5) (41) (19) Total recognised gains and lossesrelating to the period (1,080) (1,549) (2,383) Consolidated balance sheetat 31 January 2005 As at 31 January As at 31 January As at 31 July 2005 2004 2004 Unaudited Unaudited Audited Note £000 £000 £000 £000 £000 £000 Fixed assetsTangible assets 173 253 195 Current assetsStocks 518 474 251Debtors 1,008 542 1,124Cash at bank and in 1,894 4,254 3,704hand 3,420 5,270 5,079 Creditors: amountsfalling due within oneyear (633) (680) (1,235) Net current assets 2,787 4,590 3,844 Total assets lesscurrent liabilities 2,960 4,843 4,039 Creditors: amountsfalling due after morethan one year - (9) -Provisions forliabilities and charges (75) (36) (75) Net assets 2,885 4,798 3,964 Capital and reservesCalled up share capital 69 69 69Share premium account 4 23,972 23,971 23,971Other reserve 4 8,563 8,563 8,563Profit and loss account 4 (29,719) (27,805) (28,639) Shareholders' funds -equity 2,885 4,798 3,964 Consolidated cash flow statementFor the 6 months to 31January 2005 6 months to 31 6 months to 31 Year to 31 January 2005 January 2004 July 2004 Unaudited Unaudited Audited Note £000 £000 £000 £000 £000 £000 Cash flow statement Cash outflow fromoperating activities 5 (1,837) (1,989) (2,576) Returns oninvestments andservicing of financeInterest received 68 85 162Interest paid (1) (2) (35) 67 83 127Taxation - 111 110 Capital expenditureand financialinvestment Purchase of tangiblefixed assets (17) (174) (196)Disposal of tangiblefixed assets - - 7Foreign exchangeadjustment - - 5 (17) (174) (184) Cash outflow beforemanagement of liquidresources andfinancing (1,787) (1,969) (2,523) FinancingRepayment of loans (19) (19) (37)Issue of share 1 - -capital (18) (19) (37) (Decrease)/increasein cash in theperiod (1,805) (1,988) (2,560) Reconciliation ofnet cash flow tomovement in netfunds 6 (Decrease)/increasein cash in theperiod (1,805) (1,988) (2,560) Cash inflow/(outflow) fromincrease/(decrease)in debt and leasefinancing 19 19 37Translation (5) (41) (19)adjustment Movement in netfunds in the period (1,791) (2,010) (2,542) Net funds at thestart of the period 3,676 6,218 6,218 Net funds at the endof the period 1,885 4,208 3,676 Notes to the accounts: 1. The interim financial information has been prepared on the basis of accounting policies consistent with those applied in the accounts for the year ended 31 July 2004. The information is unaudited and does not comprise the statutory accounts of the group. The statutory accounts of IndigoVision Group plc for the year ended 31 July 2004 have been filed with the registrar of companies. KPMG Audit Plc have reported on the statutory accounts; their report was unqualified and did not contain any statement under section 237 of the Companies Act 1985. 2. This report was approved by the board of directors on 21 March 2005. 3. Loss per share Loss per share is calculated as follows: Six months to Six months to Year to 31 January 2005 31 January 2004 31 July 2004 £000 £000 £000 Loss for the period (1,075) (1,508) (2,364) Number Number Number Weighted average number of shares Basic weighted average shares in issue 6,921,976 6.919.976 6,919,976 Basic loss per share (15.53p) (21.79p) (34.16p) 4. Share premium and reserves Share Premium Other reserve Profit & Loss Account Account £000 £000 £000 At beginning of period 23,971 8,563 (28,639)Retained loss for period - - (1,075)Currency exchange movements - - (5)Share options exercised 1 - - At end of period 23,972 8,563 (29,719) 5. Reconciliation of operating loss to operating cash flows Six months to Six months to Year 31 January 2005 31 January 2004 to £000 £000 31 July 2004 £000 Operating loss (1,229) (1,702) (2,784)Depreciation 38 48 116(Increase)/decrease in stocks (267) (68) 155Decrease/(Increase) in debtors 203 (75) (474)(Decrease)/increase in creditors (582) (200) 364 Movement in warranty provisions - 8 47 Net cash (outflow)/inflow fromoperating activities (1,837) (1,989) (2,576) 6. Analysis of net funds At 1 August Cash flow Other non At 31 January 2004 cash changes 2005 £000 £000 £000 £000 Cash in hand and at bank 3,704 (1,810) - 1,894Debt due within one year (28) 19 - (9) Total 3,676 (1,791) - 1,885 This information is provided by RNS The company news service from the London Stock Exchange