CLOSED circuit television provider IndigoVision has seen its shares rise 3.6 per cent after reporting record annual revenue and signalling further growth is on the cards.
The Scottish firm saw its products deployed at every venue of the Commonwealth Games in Glasgow this summer as well as stadiums hosting World Cup football matches in Brazil.
Chief executive Marcus Kneen said the business was pleased to have secured large project work but also highlighted strong recurring business while new clients wins in North America added up to the highest tally it has ever recorded.
The business, which has its headquarters in Penicuik, Midlothian, saw revenue increase more than 16 per cent from £32 million to £37.2m in the 12 months to July 31 this year.
IndigoVision said the rise would have been 20 per cent on a constant currency basis. Pre-tax profit grew by close to 18 per cent from £2.08m to £2.45m.
Mr Kneen said: "We are being seen as an innovator, we have high-performing products and have a service level that I believe is second to none. There is a confidence both within and without the business which is building."
He pointed out large projects to supply CCTV to cities in south-east Malaysia as well as highlighting a casino contract in Macau, China, as something which the company had been working on for two years.
IndigoVision has also extended its presence to more than 160 towns and cities in Colombia.
Revenue in Europe, the Middle East and Africa was up by 23 per cent, Asia Pacific also growing 23 per cent and North America by 17 per cent. Latin America increased by three per cent after several years where it had been the company's fastest-growing territory.
Mr Kneen believes a close focus on certain market sectors, including oil and gas, transport, cities, government, education, policing, prisons and casinos, was paying off. He said: "Because we concentrate on a limited number of market verticals you end up being able to speak the language of the customer.
"We will shortly do our 80th airport globally so we know how they work and we know the issues."
Alongside that he suggested the business has become increasingly keen to innovate in recent years.
One airport system in Latin America was said to have integrated with software offering analytics, facial recognition, people counting and incident management. Those elements are now to be rolled out in IndigoVision's product portfolio in the coming month.
Mr Kneen said: "We do a lot more experimenting than we used to. We will try things and when we get good success we will roll it out."
Mr Kneen said the business had made contingency plans if there is a Yes vote in the Scottish independence referendum.He cited the importance of UK Trade & Investments and the British embassies network in helping IndigoVision enter new markets as one of the main reasons the company would prefer the Union to remain.
He said: "The British brand, right down to James Bond, is seen as having high credentials in security."
An annual dividend of 12p represents a nine per cent increase and the company had a cash balance of £2.44m at July 31.
From the end of 2014 the company is moving to a new financial year which will run from January to December. IndigoVision is also going to start reporting its figures in dollars. Mr Kneen said: "We ship to 90 different countries and 75 per cent of our sales are dollar denominated.
"We have had quite large movement in profitability which are to do with foreign exchange rates and not the trading of the company.
"All our receivables and inventory are in dollars so it has an impact on the balance sheet as well."
Mr Kneen added that he is confident IndigoVision is on the right path to keep growing and said: "I think we have got the business quite well positioned for moving forward."
Chairman Hamish Grossart said: "The medium and long term outlook for the markets in which we operate continues to be favourable."
Shares closed up 16.5p at 471.5p. That remains well above the 400p offered by founder Oliver Vellacott in a failed management buyout bid three years ago.
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