Security camera specialist IndigoVision (IND:AIM) sneaks out a holiday howler as it admits second half trading will now fail to offset losses in the first half.
Guidance at half year results published in September indicated second half profits were ‘expected comfortably to exceed first half losses’.
But today management says operating profit was just $800,000 (£536,000) versus a first half loss of $1.3 million.
IndigoVision shares trade 8.3% lower at 201p.
Project delays, economic and political challenges were blamed for a sales slowdown flagged back in April which saw sales in the six months to 30 June 2015 decline 29%.
Slowing sales in Asia-Pacific and weak demand from oil and gas customers in Latin America both weighed on installations of IndigoVision’s video security systems products.
Sales also contracted 18% in the second half which management says was worse than expected.
‘The action taken in the first half in relation to operating costs meant that operating profitability was restored in the second half notwithstanding lower sales,’ chief executive Marcus Kneen said in a trading statement.
Working capital management should help improve cash balances to $2 million from net debt of $0.5 million.
Full-year results will be reported on 3 March 2016.