SHARES in IndigoVision surged by nearly 10 per cent after the video security specialist declared it was on course to report a first-half operating profit for the first time since 2014.

The Penicuik-based company, which sells its surveillance systems to airports, casinos and police services around the world, cheered investors by reporting sales of $22.2 million (£17.7m) for the six months ended June 30, up eight per cent on the same period last year.

It told the City that the trend of revenue growth it saw throughout 2018 had carried on into this year, putting it on track to make a first-half operating profit for the first time in five years. The company made an operating loss of $1.1m for the first half of 2018.

READ MORE: IndigoVision forecasts return to the black after highlighting Malaysian orders

Yesterday’s update underlines the progress which has been made by the company since November 2017, when its then chief executive Marcus Kneen stepped down as the firm ran into headwinds in the Middle East, sparked by “unforeseen delays” in winning large contracts.

Mr Kneen, whose departure followed the exit of long-standing chairman Hamish Grossart, was replaced by Pedro Simoes in January 2018.

In May this year the company said it narrowed operating losses to $0.6 million in 2018 after a $2.8m reverse in 2017.

Updating the city in its AGM statement in May, the company targeted a return to profitability this year as it cited the boost brought by two major orders in South-east Asia in the four months to April 27.

The company noted yesterday that it had $2.7m of cash in hand at June 30, compared with $2m on December 31. It will report its interim results on August 14.

Shares closed up 9.94%, or 15.5p, at 171.5p.