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IndigoVision Group shares suffer setback

CLOSED-circuit television provider IndigoVision Group has seen its shares dip two per cent in spite of signalling it is on course for a 17 per cent rise in annual profits.

TOP DUO: IndigoVision Group chief Marcus Kneen, right, and chairman Hamish Grossart. Picture: Stewart Attwood
TOP DUO: IndigoVision Group chief Marcus Kneen, right, and chairman Hamish Grossart. Picture: Stewart Attwood

The company, based in ­Penicuik, Midlothian, has seen its systems deployed at the World Cup in Brazil and the Commonwealth Games in Glasgow this summer.

In a trading update covering the 12 months to July 31 Indigo­Vision said revenue was more than £37 million, ahead of the £32m booked in the previous financial year.

The business, run by chief ­executive Marcus Kneen and chairman Hamish Grossart, said that if it had stripped out the effects of currency fluctuations revenue would have surged more than 20 per cent. It said: "All major regions have reported year on year revenue growth.

"Gross margins were marginally ahead of the previous year, and overheads were increased by approximately 15 per cent as IndigoVision continued to develop global sales and distribution."

The revenue growth is also likely to see a hike in operating profits with the company suggesting a 17 per cent increase to £2.4 million.

IndigoVision said: "Profits were affected by sterling strengthening against the US dollar, in which the majority of the group's sales are denominated. Before foreign exchange movements, operating profit will be around £2.7m, approximately 50 per cent higher than last year.

"Last year's operating profits included a £300,000 foreign exchange gain."

The football World Cup in Brazil was the third tournament in a row the company has provided services for.

This time around its technology was used to allow all 12 stadiums to be monitored from a central control room in Rio de Janeiro as well as being linked in to regional control centres in each of the host cities

It also has other major customers in the country including the Sao Paolo International Airport and the Brazilian Ministry of Work.

Across the 12 month trading period IndigoVision has continued to win new business around the world.

That included providing more than 1,000 cameras to Kuala Lumpur City Hall and the Royal Malaysian Police to help improve public safety in the nation's capital city

It also increased the number of Colombian cities it has products in to more than 160.

IndigoVision, which listed on AIM in December 2003, has previously highlighted its expansion in the United States and Russia during the past year.

Its customers are involved in sectors such as transport, infrastructure, oil and gas, gaming, financial services and energy.

The share price, which has been on a strong run since March, reversed 10p yesterday to close at 490p.

Mr Kneen's predecessor Oliver Vellacott, who founded the business, abruptly left in December 2011, following the rejection of three separate management buyout proposals rejected by IndigoVision's board.

Mr Vellacott then sold his stake of more than 22 per cent in October 2012 after a failed bid to oust Mr Grossart from his role as chairman.

Mr Grossart remains one of the company's largest investors with a 5.51 per cent stake.

At the moment IndigoVision has sales and support teams in 23 countries as well as 14 regional centres around the world.

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