RNS Number:9297I
IndigoVision Group PLC
14 September 2006
14 September 2006
IndigoVision Group plc ("IndigoVision")
Preliminary Results for the year to 31 July 2006
Highlights
Financial Highlights
* Total revenues more than doubled to #7.6m
* Product revenues increased by 95% to #6.9m
* First annual profit before taxation of #0.44m, last year loss #1.90m
* Net cash balances increased from #1.1m to #1.5m
Operating Highlights
* EMEA revenues increased 83% from #2.4m to #4.4m
* APAC revenues increased 535% from #0.3m to #1.8m
* Americas revenues increased by 49% from #0.9m to #1.4m
* Sales offices established in China, India, Mexico, Scandinavia and
Baltic
* New range of IP Dome Cameras
* New advanced video analytics and enterprise alarm management
* Major new installations in all major geographies in rail, casinos and
airports
Oliver Vellacott, Chief Executive, said:
"I am pleased to be able to report that the group has returned its first full
year profit in a second year of very good growth in a rapidly developing market.
These results demonstrate the excellent progress we are making in all
territories.
IndigoVision's complete end-to-end digital video and alarm management enables
cost effective solutions for public security and timely response to emergency
situations.
We expect rapid growth to continue in the first half of the current year and are
confident for the year as a whole, as the market shift from analog to IP video
continues, and the benefit from the investment in sales flows through to
operating results."
Enquiries to:
IndigoVision plc Oliver Vellacott, CEO +44 (0) 131 475 7200
Marcus Kneen, CFO
Chairman's statement
In the year to 31 July 2006, IndigoVision passed the crucial milestone of its
first annual operating profit. The year was again one of very good growth in
turnover, against closely controlled cost increases, as the market up take of
internet protocol (IP) video technology accelerated. The customer base
broadened in all the major markets and we are clear that the market is currently
set for a continued period of growth. We now believe the time is right to make
a planned substantial increase in the sales force to ensure that IndigoVision
takes maximum advantage of the outstanding opportunity available to it.
Results
Turnover for the year to 31 July 2006 increased by 110% to #7.6m (2005-#3.6m)
with product revenues almost doubling to new record levels. Americas sales
increased 49% compared with 2005. Europe, Middle East and Africa sales
increased 83% compared with 2005. Asia sales increased 535% compared with 2005.
The geographical split of revenues was Europe, Middle East and Africa: 58%
(2005-67%), Americas: 18% (2005-25%) and Asia: 24% (2005-8%). Operating cost
increases were held to 5%. Year end actual headcount increased from 44 to 55.
The cashflow from operating activities improved from an outflow of #2.7m to an
inflow of #0.4m for the year. The net cash balance at 31 July 2006 was #1.5m
(2005-#1.1m).
About IndigoVision
IndigoVision is a leading manufacturer of complete end-to-end IP networked
digital video and alarm management solutions principally for the security
market. IndigoVision solutions are today being used to secure mission critical
facilities across the world in ports, rail, road, airports, banks, casinos,
schools, industrial, mining, government, prisons, police and the military.
IndigoVision serves these markets in partnership with some 140 authorised
installers in over 30 countries, each of which is required to undergo
comprehensive training.
Field proven worldwide
IndigoVision solutions are used in 26 airports, six major rail networks, two of
the world's top 5 banks and prestigious municipal projects in London, California
and Singapore. IndigoVision was chosen for the 2006 Turin Winter Olympics, the
2004 Athens Olympics and the 2006 Soccer World Cup in Germany. IndigoVision
solutions are tried and tested worldwide. They vary in scale from small single
sites to large complex enterprise systems, and are intrinsically tolerant to
network, storage and/or power failure.
The forefront of IP Video technology
IndigoVision's 'Control Center' enterprise video management software drives its
range of over 160 hardware products which connect analog CCTV and IndigoVision
IP cameras to networks in order to transmit and record DVD quality video using a
'virtual matrix'. 'Control Center' is supplied free of charge, with an
unrestricted licence included in the cost of hardware. Networked Video Recorders
deliver best-in-class performance, recording 200 streams of full frame rate real
time video on a regular PC and allowing 24 hours of video to be scanned in just
6 seconds. Although this system provides a complete solution for IP Video, there
is extensive integration with systems from other manufacturers including access
control and intruder alarms. Real time advanced analytics for automated
detection of incidents include congestion detection, counterflow analysis, left
luggage detection and virtual tripwire.
Current trading and outlook
We are pleased that 2006 has shown that IndigoVision has broken into profit and
the task before the group's management is to grow operating margins to a more
acceptable level while continuing to generate substantial sales growth.
The current year has started well, with product sales for the seven weeks since
the year end 90% higher than the corresponding period last year. We expect the
rapid rate of sales growth achieved last year to continue in the first half and
we see every reason to plan for good growth for the year as a whole.
In the current year, now that the sales infrastructure has been established, the
rate of increase in sales and marketing expenditure will be stepped up to make
sure that IndigoVision takes maximum advantage of the opportunity before it.
Consistent with that, the group's investment in stock of the faster selling
finished goods will be materially increased as production batch sizes increase
to achieve manufacturing efficiency. In addition, research and development
expenditure will be increased to make sure that IndigoVision's market leading
position is maintained.
IndigoVision has an opportunity, with patience, to build a much bigger and more
profitable business and the last two years have seen many of the building blocks
put in place to achieve this. We expect the current year to show further
progress towards this goal.
Consolidated profit and loss account
for the year ended 31 July 2006
Note 2006 2005
#000 #000
Group Turnover 4 7,574 3,605
Cost of sales (2,853) (1,549)
------ ------
Gross profit 4,721 2,056
Research and development expenditure (1,376) (1,447)
Other administrative expenses (2,870) (2,613)
------ ------
Group operating profit / (loss) 475 (2,004)
Interest receivable and similar income 44 102
Interest payable and similar charges (80) (1)
------ ------
Profit / (loss) on ordinary activities
before taxation 439 (1,903)
Tax on profit / (loss) on ordinary
activities 87 87
------ ------
Profit / (loss) for the financial year 526 (1,816)
------ ------
Profit / (loss) per ordinary share
Basic profit / (loss) per share 5 7.6p (26.23p)
Diluted profit / (loss) per share 5 6.7p (26.23p)
------ ------
Turnover and profit / (loss) on ordinary activities before relate wholly to
continuing activities.
Consolidated balance sheet
at 31 July 2006
Note 2006 2006 2005 2005
#000 #000 #000 #000
Fixed assets
Tangible assets 240 159
Current assets
Stocks 398 353
Debtors 2,105 1,430
Cash at bank and in hand 1,454 1,132
------ ------
3,957 2,915
Creditors: amounts falling due within one
year (1,431) (850)
------ ------
Net current assets 2,526 2,065
------ ------
Total assets less current liabilities 2,766 2,224
Provisions for liabilities and charges (90) (75)
------ ------
Net assets 2,676 2,149
------ ------
Capital and reserves
Called up share capital 6 69 69
Share premium account 7 23,974 23,973
Other reserve 7 8,562 8,562
Profit and loss account 7 (29,929) (30,455)
------ ------
Shareholders' funds - equity 2,676 2,149
------ ------
Consolidated cash flow statement
for the year ended 31 July 2006
Note 2006 2005
#000 #000
Cash flow statement
Cash inflow / (outflow) from operating
activities 8 334 (2,692)
Returns on investments and servicing of
finance 44 101
Taxation 87 87
Capital expenditure (144) (41)
------ ------
Cash inflow / (outflow) before financing 321 (2,545)
Financing 1 (27)
------ ------
Increase / (decrease) in cash in the year 322 (2,572)
------ ------
Reconciliation of net cash flow
to movement in net funds 9
Increase / (decrease) in cash in the year 322 (2,572)
Cash outflow from debt repayment - 28
------ ------
Change in net debt resulting from cash
flows 322 (2,544)
------ ------
Movement in net funds in the year 322 (2,544)
Net funds at the start of the year 1,132 3,676
------ ------
Net funds at the end of the year 1,454 1,132
------ ------
Statement of total recognised gains and losses
for the year ended 31 July 2006
Group
2006 2005
#000 #000
Profit / (loss) for the financial year 526 (1,816)
Exchange differences on the retranslation of net investments - -
------ ------
Total recognised gains and losses relating to the financial year 526 (1,816)
------ ------
Reconciliations of movements in shareholders' funds
for the year ended 31 July 2006
Group Company
2006 2005 2006 2005
#000 #000 #000 #000
Profit / (loss) for the financial year 526 (1,816) (19) (2,359)
Increase in share capital 1 1 1 1
------ ------ ------ ------
Net increase / (reduction) in shareholders' funds 527 (1,815) (18) (2,358)
Opening shareholders' funds 2,149 3,964 1,251 3,609
------ ------ ------ ------
Closing shareholders' funds 2,676 2,149 1,233 1,251
------ ------ ------ ------
Notes to the accounts:
1 Principal Activity
The principal activity of the group is the design, manufacture, sale and
licensing of software and hardware products.
2 Accounting policies
Basis of preparation
The preliminary financial information has been prepared on the basis of the
accounting policies set out in the most recent set of financial statements for
the year ended 31 July 2005. These policies are detailed on pages 13 and 14 of
The IndigoVision Group plc annual report for 2005.
This report was approved by the board of directors on 13 September 2006.
3 Annual accounts
The financial information set out in this announcement does not constitute the
Group's Statutory Accounts for the year ended 31 July 2005 or 2006 but is
derived from those accounts. Statutory Accounts of IndigoVision Group plc for
2005 have been delivered to the Registrar of Companies and those for 2006 will
be delivered to the Registrar of Companies following the Company's annual
general meeting. The auditors have reported on those accounts; their reports
were unqualified and did not contain a statement under section 237(2) or (3) of
the Companies Act 1985.
This report was approved by the Board of directors on 13 September 2006.
4 Segmental information
2006 2005
#000 #000
Turnover by destination
Europe, Middle East & Africa 4,381 2,412
Asia 1,823 287
Americas 1,370 906
------ ------
7,574 3,605
------ ------
5 Profit / (loss) per share
2006 2005
#000 #000
Issued ordinary shares at start of period 6,924 6,920
Effects of shares issued during the period from exercise of employee share options 4 4
------ ------
Weighted average number of ordinary shares at end of period
- for basic earnings per share 6,928 6,924
Effect of share options in issue 878 -
------ ------
Weighted average number of ordinary shares at end of period
- for diluted earnings per share 7,806 6,924
------ ------
Basic earnings per share
The calculation of basic earnings per share for the year ended 31 July 2006 was
based on profit / (loss) attributable to ordinary shareholders of #526,000
(2005-(#1,816,000)) and a weighted average number of ordinary shares outstanding
during the year ended 31 July 2006 of 6,927,976 (2005-6,923,976), calculated
as shown above.
Diluted earnings per share
The calculation of diluted earnings per share for the year ended 31 July 2006
was based on profit / (loss) attributable to ordinary shareholders of #526,000
(2005-(#1,816,000)) and a weighted average number of ordinary shares
outstanding during the year ended 31 July 2006 of 7,806,176 (2005-6,923,976),
calculated as shown above.
6 Called up share capital
2006 2005
#000 #000
Authorised
Equity: Ordinary shares of 1p each 14,922 14,922
------ ------
Allotted, called up and fully paid
Equity: 6,927,976 Ordinary shares of 1p each 69 69
(2005-6,923,976)
------ ------
69 69
------ ------
During the year 4,000 ordinary shares of 1p each were issued at 35p per share
pursuant to the exercise of options.
7 Share premium and reserves
Share Profit
premium Other and loss
account reserve account
Group #000 #000 #000
At beginning of year 23,973 8,562 (30,455)
Retained profit for the year - - 526
Premium on share capital 1 - -
------ ------ ------
At end of year 23,974 8,562 (29,929)
------ ------ ------
8 Reconciliation of operating profit / (loss) to operating
cash flows
2006 2005
#000 #000
Operating profit (loss) 475 (2,004)
Depreciation 61 72
(Increase) in stocks (45) (102)
(Increase) in debtors (675) (306)
Increase/(decrease) in creditors 581 (357)
Foreign exchange (loss) / profit (78) 5
Movement in warranty provisions 15 -
------ ------
Net cash inflow / (outflow) from operating
activities 334 (2,692)
------ ------
9 Analysis of net funds
At beginning Cash flow At end of
of year year
#000 #000 #000
Cash in hand, at bank 1,132 322 1,454
------ ------ ------
Total 1,132 322 1,454
------ ------ ------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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