LISTED video security company IndigoVision has indicated that it will have returned to profitability by the end of this year after posting losses since the middle of last year.

The firm, which specialises in the design and supply of security surveillance equipment, has suffered since the first half of 2015 in part because of the knock-on effect of the slump in oil prices. In the six months to June 2015 the firm recorded a pre-tax loss of $1.3 million while for the full year the figure was $753,000.

The firm noted that a rapid reduction in spend from Brazilian oil and gas companies and the Canadian shale oil market had an impact, as did delays in projects in the Middle East.

In the first half of 2016 the Glasgow-headquartered firm saw its pre-tax loss reduce to $275,000 and in an update to the London Stock Exchange said it is expecting a “profitable outcome” to 2016.

This is in part due to the second half of the year always being busier for the firm and in part because the firm last year stopped manufacturing its own cameras in favour of buying them, which reduced the overall cost.

“As a result of these factors IndigoVision is trading profitably in the second half, after losses in the first half, and expects to report a profitable outcome for the year to 31 December 2016 as a whole,” the firm’s trading update said.

“This would represent a substantial improvement over the 2015 full year operating loss of $0.7m.”

In November the firm unveiled new control centre video management software with a view to widening its appeal to a larger customer base and reducing the volatility assocated with projects-related sales.