CCTV provider IndigoVision has seen its shares fall 5.5 per cent after warning trading conditions in some of its markets remained difficult.

The AIM-listed company, based near Penicuik, Midlothian, had previously warned on softness in Asia Pacific and Latin America.

Marcus Kneen, chief executive, confirmed those areas continue to be sluggish but other parts of the business are performing well.

He said: "It is subdued in Latin America and Asia Pacific. We are still doing well in the USA particularly and have sealed another casino deal in the last week."

Shares fell 20p to 342.5p after IndigoVision posted revenue of $82.5 million for the 17 months to December 31.

It is shifting its financial year to follow the calendar and also changing its reporting currency to dollars in a bid to mitigate the impact of currency fluctuations.

Revenue in the 12 months to July 31, 2013 had been $50.1m.

The most recent profit before tax came in at $4.27m which included a negative currency movement of $586,000. The prior 12 month period had seen $3.2m profit with a $494,000 currency benefit.

A dividend of 17p was declared for the 17-month period.

Mr Kneen said: "We have kept the dividend going, we could do better on profitability but it is still there and it takes longer than many people think to develop a business of scale."

Mr Kneen pointed out the business had seen its best performance in the both the United States and Europe in around five years.

He indicated the US in particular continues to go well with the company landing a further contract in the casino market within the past week.

In Latin America Mr Kneen said: "In a business like that which relies on big projects then one doesn't happen or there's a delay in the project then suddenly the numbers don't look very clever."

Across the whole group Mr Kneen said there is a focus on building up the mid-market category which typically focuses on deals of between 10 and 100 cameras.

He believes that will help to balance the more cyclical nature and longer lead-in times of the larger projects.

He said: "We are quite strong in that [mid-market] in a limited number of geographies and are pushing on harder with that in more geographies.

"What we are going to do is get the less risky part of the business to be much bigger to balance the lumpiness of the big projects.

"We like the big projects, we do well at them so will keep on at that and grow that but we need to grow faster [in] the mid-market."

According to Mr Kneen the business will launch eight new products in the first quarter of this year.

That will include a body mounted camera and one with infra red technology along with updated software suites.

Its research and development team is also looking into the possibility of using drones.

Mr Kneen said: "We are doing a lot more innovation and testing.

"We have just completed a whole series of testing around drones and video. We see there is a possibility for a tethered drone.

"There is a lot more innovation going on in the software. A lot of the developments there, such as being able to track people from camera to camera, are way ahead of where we used to be."

The IndigoVision annual report shows Mr Kneen received remuneration of $537,000 across the 17 month period compared to $354,000 in the prior 12 month period. Finance director Holly McComb got$264,000, compared to $158,000.

Chairman Hamish Grossart, who is also a major shareholder, got a fee of $139,000.