IndigoVision swings to first-half loss, cancels dividend

17th Sep 2015 08:21

(ShareCast News) - IndigoVision Group swung to a loss in the first half of the year as revenue declined in challenging trading conditions.The company, which provides digital CCTV systems for government, airports, banks and casinos, posted a loss after tax of $0.92m compared with a profit of $1.67m in the same period last year as revenue dropped to $22.6m from $31.9m.Indigo said Asia Pacific experienced the greatest decline in revenue following a record performance in the prior period. Latin America also reported a significant decline after the rapid reduction in spend by the Brazilian oil and gas market, and as a result of project timing of the safe city projects in Colombia.However, the UK market saw a 22% increase in sales, delivering police and safe city projects.The company said that in line with its policy that dividends relate to earnings and, given the first half loss, it has decided not to pay an interim dividend this year.Chief executive Marcus Kneen said: "Trading in the first half has been challenging, but Latin America and the Middle East are now starting to show an improving sales trend. The group's activity is weighted towards enterprise markets where revenues are materially impacted by project timing and the wider economic backdrop, and these factors affected the first half performance."Indigo said it has a stronger pipeline of large projects for the second half of the year, mostly from the Middle East and the Americas."Although the first half was disappointing, IndigoVision is in a good position to progress in the second half," said Kneen.At 0830 BST, IndigoVision shares were down 12.5% at 213p.