Indigovision Group (IND)

 

IndigoVision warns of FY operating loss

IndigoVision has warned that its results will be below forecasts and that it will report an operating loss for the year ending 31 Dec.

The group said chief executive Marcus Kneen had resigned from the board with immediate effect.

Pedro Simoes, who was appointed as senior vice-president - global sales on 2 Oct has been appointed as interim CEO.

An update said: 'The management and sales team changes in the US are showing continued signs of delivery, with further growth in the sales pipeline, but the Middle East has experienced more difficult trading conditions, with unforeseen delays in securing a number of large contracts.

'Current expectations are that revenue for the year will be in the region of $41m to $43m.

'Gross margins for the year are likely to be a little ahead of those achieved last year and total overheads are expected to be around 5% higher than last year, due principally to the investment in the US described within the Interim Results statement.

'The financial position of the Group remains strong, with current cash balances of $2.5m and bank facilities of $4.0m which remain undrawn.'

At 8:28am: (LON:IND) IndigoVision Group PLC share price was -55p at 107.5p