IndigoVision delights the City
Scottish video-over-internet company IndigoVision enjoyed a 34% surge in its share price after declaring yesterday that published market forecasts “seriously understate” its potential operating performance this financial year.
IndigoVision, which ships its technology to 82 countries and has won contracts to install video security at Chinese airports, delighted the City with news of a stronger profit performance in the first four months of its financial year to July 2012. IndigoVision’s shares climbed 67.5p to 265p in the wake of its trading update.
This added more than £5m to its stock market worth, taking it to about £20m.
The shares have been on a rollercoaster ride, having traded close to 600p as recently as February. They are, however, now well above their recent lows, with the shares having dipped towards 160p earlier in the autumn as the City focused on difficult trading towards the end of the year to July 2011.
Greig Aitken, analyst at house broker Brewin Dolphin in Glasgow, had been forecasting IndigoVision’s sales would fall by 10% to £26m in the year to July 2012 and a pre-tax profit figure of about £600,000.
IndigoVision made pre-tax profits of £1.2m in the year to July 2011.
In the 12 months to July 2010, it made pre-tax profits of £3.1m.
Mr Aitken is upgrading his forecasts for IndigoVision for the year to next July following yesterday’s trading statement.
Referring to the difficult trading which IndigoVision encountered in the fourth quarter of its last financial year. Mr Aitken said: “Q4 last year there was a slowdown but it doesn’t appear to be symptomatic of anything wider because they have got off to a very strong start and had a very good four months this year. We are still concerned about the macroeconomic environment, but it looks as if they are going to outperform our numbers.”
Mr Aitken had, at the time of a solid annual meeting trading statement from IndigoVision three weeks ago, highlighted a belief that it was “well placed to beat our expectations”. Marcus Kneen, chief financial officer of IndigoVision, highlighted the current strength of trading in emerging markets, particularly in Latin America.
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