IND: 2009 & beyond

30th Sep '09 by StrollingMolby

8 comments 6412 reads

A thread for general discussion of IndigoVision ("IND") and developments that affect it.

IND is a leading manufacturer of complete end-to-end IP security management systems, and is benefitting from the industry switch from analogue systems to the digital systems that the company designs and supplies.

www.indigovision.com

IND is headquartered in Edinburgh UK, with local sales and support offices in 22 countries, and partners with some 270 authorized system integrators and installers in 64 countries to provide local system design, installation and service to end users. Products are manufactured in the Far East and with three stocking and service hubs in Europe, Asia and the US, IND can provide local and rapid response to partners.

Sectors

IND can now point to a multitude of reference sites that showcase the advantages that its technology provides, categorised into the following vertical markets: Airports, Casinos, Cities & Residential, Education, Finance, Government, Health, Hospitality, Industrial, Major Events, Mining, Petrochemicals, Police & Prisons, Ports, Rail, Residential, Retail, IT/Telecommunication and Traffic.

Technology

IP Video

Analytics

High-Definition image quality

Storage

Mega Video Projects

Research

Brewin Dolphin - 5-Oct-09

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StrollingMolby

30th Sep '09

IND annual results to 31-July-2009 were issued this morning and in my view make for fine reading. Profits are growing from the effort and expense put into both R&D and sale/marketing recruitments over recent years, demonstrating the benefit of operational gearing now dropping through to the bottom line (there is something like a 9-month lag between the expense and subsequent sales).

Financial Highlights
* Revenues up 43% to a record GBP26.4m
* Operating profit up 59% to a record GBP3.26m
* Adjusted basic earnings per share up 59% to 34.1p
* Net cash more than doubled to GBP3.5m at 31 July 2009
* Maiden dividend of 5.0p per share

Operating Highlights
* Increased investment in engineering capability
* Supporting ONVIF and PSIA open standard initiatives for IP cameras
* Integration with access control, perimeter detection and vehicle licence plate recognition systems
* Product range:
* High-Definition (HD) IP cameras range increased
* Network Video Recorder performance increased

Major installations across all geographies in 20 vertical markets including:
    * 11 casino projects in North America
    * US-Canadian border crossings for Canada Border Services Agency
    * Banking and Retail projects in all geographies
    * Airport projects in USA, India, China and Portugal
    * Oil, gas and petrochemicals including Sakhalin pipeline and Shell Albian
    * City and traffic systems in all major geographies
    * Rail projects including Santiago Metro in Chile

6th Oct '09

Latest Brewin Dolphin research note added in the header, from the IND website http://www.indigovision.com/AIM26/IND_Prelim_05-Oct-09.pdf

Contains a conservative target of 725p, but also recognises the high operational leverage.

It is worth highlighting that IND is highly operationally geared – a 1% sales increase beyond our +10% sales estimate has a +5% EPS sensitivity. Therefore any upgrades to forecast revenue growth will have a significant effect on valuation.

Brewin estimate that 10% revenue growth gives 2010 EPS of 32.5p (share price target of £7.25), whilst 50% revenue growth would see EPS of 96p (EPS growth of 196% and a share price target of £20).

Fangorn

10th Aug '10

A profits warning from IND this morning

The board of IndigoVision, a leading global supplier of IP security systems, reports that estimated turnover for the year to 31 July 2010 was approximately £28.0m, c.6% higher than last year's record levels. Sales growth was strong in Latin America, and there was good sales performance in the UK, Northern Europe and Asia Pacific. In North America, Southern Europe and the Middle East sales were down on last year due to lower activity in casinos and hotels.

As expected, gross margins were lower than in 2009 reflecting the continued change in sales mix. Operating margins for the period are expected to be lower than last year and, as a consequence, operating profits for the year just ended are expected to be lower than in 2009.

29th Sep '10

http://www.moneyweek.com/news-and-charts/company-news/indigovision-hikes-divi-on-fy-optimism-100929-0904-60616.aspx

IndigoVision hikes a 50% hike in its full year dividend to 7.5p per share on FY optimism despite a 6% drop in annual operating profit.

5th Oct '10

New Brewin Dolphin note on the website:

http://www.indigovision.com/investors_broker.php

In our view, IND’s pure-play IP CCTV exposure should lead to above-average growth, therefore we believe our forecasts are conservative and expect the balance of forecast risk lies on the upside.

12 mth target 580p - Buy.

doverbeach

4th Nov '10

For anyone that hasn't seen it, here is a write up on TMF of a company-investors meeting : http://boards.fool.co.uk/hi-its-absolutely-right-that-as-shareholders-12081337.aspx?result=RecSuccess

db

And this morning's AGM statement:

"We reported along with our annual results, released on 29 September 2010, that sales for the first few weeks of the current financial year were comfortably ahead of the corresponding period last year with mixed performance across the regions. This pattern has continued for the first quarter, which is encouraging, and sales for the three months to 31st October 2010 were some one third higher than the corresponding period last year. Whilst this level of growth is most satisfactory, it should be borne in mind that the comparison with last year is flattered by last year's slow first quarter, and therefore this level of growth is not a reliable indicator for the current year as a whole.

First quarter gross margins are expected to be similar to the corresponding period last year, and overheads are expected to be higher, reflecting the planned continued extra spend on product development and engineering. However, given the increased sales, we expect the first quarter's net operating performance, when finalised, to show a healthy improvement over last year."

marben100

Very encouraging. Based on what Indigo said in their prelims and at the recent meeting, I have been assuming 20% revenue growth for the current year. That sort of level of growth seems supported by the statement. On that basis, I arrive at an EPS forecast of 46p for the current FY. I am happy to hold at current levels and a bit higher. Would add if the price dips much.

Cheers,

Mark

IND: 2009 & beyond

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StrollingMolby

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