IndigoVision's loss deepens despite aim to break even over full-year

Video surveillance system producer IndigoVision saw its shares dive on Thursday as its first-half losses deepened despite insisting that the company’s turnaround remains on track.

Earlier this year, company chairman George Elliott had admitted that shareholders were not seeing satisfactory results and it now aims to break-even over the course of the full-year.

However, the AIM traded company recorded an increased loss of $1.1m, up from a loss of $0.7m in the same period last year, even though revenue increased by 9.5% to $22.2m over the same period.

The company attributed the growth in revenue to investment in its sales team, while the increased loss came after research and development expenditure, selling and distribution expenses and other administrative expenses all increased.

"The sales team has been strengthened and is gaining traction, we have improved our operational capabilities and our marketing efforts have focused on our increasingly innovative technology. The group's reporting structures have been streamlined to focus on a performance driven culture and key deliverables," said Elliott.

At 30 June, the company had cash and cash equivalents of $2.7m, down from $4.9m at the same point last year.

Pedro Simoes, chief executive of IndigoVision, said: "I am particularly pleased with the pace of technology innovation across the group. Recent regulatory changes in the US confirm the need to maintain a competitive advantage and strategic relationships in our supply chain, something I believe IndigoVision is well-placed to capitalise on."

IndigoVision’s shares were down 7.30% at 108.00p at 1050 BST.