Indigovision (LON:IND)
Share Price 183p (up 6.1% today)
Market Cap £13.67 million
Bid/Offer 178p - 188p NMS 750 shares
Previous report on 2nd Dec 2016. http://www.stockopedia.com/content/indigovision-pl...
About IndigoVision
IndigoVision designs and manufactures high performance, video security systems for a wide range of users from large scale and complex security installations to small, eight camera systems. From video capture and transmission to analysis and storage, IndigoVision networked video security systems provide the best quality and most secure video evidence, using market leading compression technology to minimise network bandwidth usage and reduce storage costs.
The company claims to cover 20 market sectors with sales and support staff in 30 countries. The company provides further support from 15 regional centres around the world from places like Singapore, Dubai, and Edinburgh to provide local installation and service to end users by its 500 trained integrators.
Profits for 2016
Final results for the year ended 31 December 2016 were released today. The company made a loss in the first half of the year but managed to make a small operating profit in the second half with some caveats. Firstly, we need to ignore the write-down of 300K in bad debts from a previous accounting period and secondly, we need to recognise also the further write-down of the deferred tax asset built up in previous years from losses of $3.16 million down to $1.69 million. This leaves investors with a diluted loss per share of 37.3 cents. Ouch! If we ignore the worst parts, the company made 9 cents adjusted profits per share.
Link for the full year results http://www.investegate.co.uk/indigovision-group/rn...
Trading During 2016
The company faced falling prices across all its products and markets. On the hardware side, they now have a tiered camera offering at different price points, which means they can potentially serve a larger range of customers. In order to sell hardware, selling prices needed to be reduced across the board. This generated 25%+ increase in sales on maintained margins of circa 51%. This was achieved by reducing their overheads and also cutting back on R&D. The Research and development expenses alone were cut by over $1 million during the year. Still the company managed to introduced a range of 45…
