Indigovision shares tank after profit warning

28th Apr 2015 15:42

Shares in Indigovision fell off a cliff on Tuesday afternoon after the internet video provider said it expected to post an operating loss for the first half.Trading conditions have been challenging for the AIM company in the early part of the year, particularly in Latin America and Asia Pacific, offsetting good growth in UK and Europe.Furthermore, North America and the Middle East have experienced delays in project spending."We expect performance to recover in the second half, but as a result of the operating loss for H1, it is likely the full year result will fall below market expectations."Management, which has cut costs as a result, said its focus remained on moving into the mid-market sales channels in order to improve visibility and the quality of earnings.House broker N+1Singer has adjusted its forecasts, with profit before tax reduced by 39% in the current year to $2.3m."We leave our dividend forecast unchanged for now but this will be assessed by the board at the time of the interim results in September.""The balance sheet remains strong with forecast cash of $1.8m at the year end."