Shares in IndigoVision drop after full year profits decline

26th Sep 2013 11:42

Shares in IndigoVision were lower after the video surveillance systems group reported a fall in annual profits.Revenue rose 6% to £32m in the year to July 31st but profits fell 13% to £2.08m after its margin shrunk to 56.7% from 59% last year.The company explained that its product mix was evolving from encoders to intelligent cameras where margins were slimmer.But it said that while margins on intelligent cameras are lower than encoders "the market opportunity is greater".Chairman Hamish Grossart said: "Although overall financial performance was a little subdued, management has been strengthened in the regions; the product portfolio has been broadened and is much more competitive and better targeted; a start has been made in improving marketing and communications; and the rate of volume growth in intelligent cameras has been encouraging."He added IndigoVision would focus its marketing efforts over the next 12 months on the oil and gas, city surveillance, transport and casino sectors."The company is lifting its annual dividend by 10% and is still sitting on cash of £0.84m after last year's special dividend payment. Shares in IndigoVision were down 8% at 297.5p at 11:39 on Thursday.TB