Shares in IndigoVision, the Edinburgh-based CCTV systems maker, jumped 17 per cent in early trading today after the firm said its profits more than doubled last year.
Chairman Hamish Grossart attributed the strong performance to the “energetic and effective” leadership of Marcus Kneen, who replaced founder Oliver Vellacott as chief executive in December following a boardroom coup.
Grossart said: “Although change is not always easy, there is now a visible spring in the step of management worldwide as they see improvements being made which should unlock IndigoVision’s potential.”
The group, which makes CCTV systems for airports, casino, ports and other sites, posted an operating profit of £2.7 million for the year to 31 July, an increase of 123 per cent compared with the previous year. Revenues grew just 5 per cent to £30.3m, but profits were lifted by a “strong recovery” in margins.
The board proposed a final dividend of 5p per share, which would take the total payout for the year to 10p – an increase of 33 per cent on the previous year’s total.
In addition, the board recommended a special dividend of 70p, which Grossart said reflected the group’s healthy cash position. Cash balances rose to £6m, from £5.1m a year earlier, and the firm has no borrowings.
Grossart added: “Whilst forward visibility of future sales remains relatively short, at this early stage there is every reason to believe that the current year will be a good one.”
Shares in the firm were up 17 per cent in early trading, giving it a market value of around £31.1m.