IndigoVision signals loss for the year as CEO steps down

IndigoVision Group updated the market on its trading on Friday, reporting that while there are still “several important weeks” before the end of its financial year on 31 December, it was now clear that management's expectations would not be achieved and that a full year operating loss will be reported.

The AIM-traded firm said its management and sales team changes in the US were showing continued signs of delivery, with further growth in the sales pipeline, but the Middle East had experienced more difficult trading conditions, with unforeseen delays in securing a number of large contracts.

Current expectations were that revenue for the year would be in the region of $41m to $43m.

Gross margins for the year were likely to be “a little ahead” of those achieved last year, and total overheads were expected to be around 5% higher than last year, due primarily to the investment in the US described within the interim results statement.

The financial position of the group remained “strong”, the board said, with current cash balances of $2.5m and bank facilities of $4.0m which remained undrawn.

Additionally, the board confirmed that Marcus Kneen had resigned from it and had ceased to be chief executive officer with immediate effect.

“The board would like to thank Marcus for his contribution to IndigoVision over the last 14 years,” its statement read.

It added that Pedro Simoes, who was appointed as senior vice president of global sales on 2 October, had been appointed as interim chief executive officer and would join the board as an executive director “as soon as practicable”.