Indigovision Share Discussion Threads

[paulypilot] 08/9/2014 19:43

Hi puffintickler,

Not sure if you saw it, but the issue of Scottish independence vote & its impact on the market has been discussed on my Stocko blog today & last week (quite an interesting airing of views in the comments section below the article):

(if that link corrupts, here it is via Tinyurl):

I imagine that the share price of IndigoVision will be unaffected - i.e. it will be quoted in UK pence. It will be interesting to see if IND will report their accounts in Scottish pounds, or in UK pounds, or even change reporting to US dollars perhaps (which might make sense)?

The main thing is that I cannot see any reason to believe Scottish independence will make any significant difference to IND's competitive position, and hence the value of the company. They have overheads in Scotland, but the manufacturing & a lot of the sales are international.

Ultimately the company could even move south of the border, although that's very unlikely as it is not likely to be necessary.

Regards, Paul.

[puffintickler] 08/9/2014 19:03

Unfortunately I can see plenty to worry about with a yes vote, but I expect the majority to see sense. Quasi independence within the UK is a better option.

If the vote is there will be years of uncertainty while the two counties are disentangled. There will be all sorts of extra costs and they will need to raise taxes to pay for all their promises. If they piggy back on the pound devaluation is not an option. If they do devalue then the share price in Scottish drams (my guess for the name of the new currency!) may rise but the price in pounds will of course fall.

Not relaxed at all about a yes vote. Even if I am wrong in the long term there will be a big hit to the share price in the short-term.

[aishah] 08/9/2014 19:03

Yes and dollar strength recently should help too imo.

[paulypilot] 08/9/2014 18:43

Hi betman,

Market was down heavily today, and stocks with Scottish exposure have been marked down, yes. I don't see any issue with IND - it sells globally, and the product is manufactured in the Far East, outsourced, and invoiced to them in dollars. Most sales are in dollars.

So the only impact is likely to be how currency issues affect the overheads in Scotland, and any changes in taxation. Scotland might even lower Corp Tax (like Ireland did) to attract inward investment, which would be good for us.

Also, if Scotland has its own currency, and it devalues, then that would increase IND's profits, as the overheads would be less (although employees would then demand pay rises, as their cost of living would increase).

Overall, I can't see anything worth worrying about at all, in respect of IND specifically from a possible Yes vote.

Regards, Paul.

[betman] 08/9/2014 09:05

IndigoVision Group plc is incorporated in Scotland (Registration Number SC208809) which is also its main country of operation.

What is the implication of a yes vote ? Is this the source of todays weakness ? SSE down about 30p

[lauders] 05/9/2014 01:51

The airport win and the Techinvest comment should have sent the shareprice the other way surely? Delayed action to come ;-)

[aishah] 04/9/2014 14:31

"Excellent value at the current level" says Techinvest in latest issue.

[exotic] 04/9/2014 13:05

03 September 2014

IndigoVision's Solution Chosen for New Chinese Airport

IndigoVision’s IP video security solution has been chosen to provide security for Ulanqab (Wulanchabu) Airport, currently under construction in Inner Mongolia, an autonomous region of China. By 2020 this airport is projected to handle 300,000 passengers and 900 tons of cargo per year.

Having successfully deployed solutions in Hongqiao, Pudong, Kunming and Nanjing airports, IndigoVision was the obvious choice for this project.

The solution's incredibly efficient bandwidth usage and the high quality of the cameras themselves also impressed, and ultimately proved to be the deciding factors.

Learn more about IndigoVision’s Airport solutions here.

[exotic] 03/9/2014 00:37

This badge seems to indicate that a new range of miniturised products might be in development... pity I can't post the image, but you can see it on the IND website...


02 September 2014

Want to See the Future of Video Surveillance First Hand?

There is still time to book a spot at IndigoVision’s September road show in Singapore and Kuala Lumpur and see the future of video surveillance.

Learn about the latest advances in Video Management Software and IP security camera technology, and get a sneak peak at the new IndigoVision Badge Camera – a completely integrated HD camera with on-board HD recording and WiFi streaming, with a small form factor that allows staff to wear it and ensure their safety at all times.

Both sessions include a free lunch and the chance to network with the top security professionals in the region.

Singapore (register here)
9th September 2014
10am - 3pm
Marriott Singapore Hotel
320 Orchard Road
Singapore 238865

Kuala Lumpur (register here)
11th September 2014
10am - 3pm
Sunway Resort Hotel & Spa
Persiaran Lagoon
Bandar Sunway
47500 Selangor Darul Ehsan
Malaysia

[exotic] 21/8/2014 12:12

20 August 2014

IndigoVision's CEO, Marcus Kneen, Explains Winning Formula For Record Sales

In this exclusive interview with securitynewsdesk.com, Marcus Kneen explains how IndigoVision's approach to product, partners and projects is paying off with record sales and significant wins, including providing video security for every stadium in the 2014 Glasgow Commonwealth Games.

Go here to read the interview.

[lauders] 21/8/2014 01:29

Time to start regaining some of the lost ground since the last announcement? I hope so. Come on IND!

[dlku] 18/8/2014 16:08

Set for a profit setback imho after the lackluster statement

[gengulphus] 16/8/2014 12:41

Would they have had to exchange the dollars to pounds when they finalised the accounts, or are they allowed to keep them in a dollar account and only change them to pounds later at a time of their choosing when the exchange rate is more favourable? If so, would they need to restate the accounts or declare it later somehow?

Companies can keep their cash in whatever currencies they want to. (Edit: And indeed, they can borrow in whatever currencies they want to, and translation of borrowings works the same way as translation of cash, just with all the signs reversed.)

Movement of the value of the holdings of currencies other than their accounting currency is declared in the accounts for the financial period in which the movement took place (not by restating past accounts). As far as the income accounting is concerned, it will generally be in the statement of comprehensive income as an entry called 'foreign exchange translation differences'. For the capital accounting, it's in the balance sheet as the changes to the 'translation reserve', and in the statement of changes in equity as entries called 'difference on translation'. All three of those quoted names probably have a number of slight variations - e.g. I think I've seen 'translation differences' as an alternative form of the last one.

Gengulphus

[dlku] 16/8/2014 08:55

looks like heading to 380-400p

[exotic] 16/8/2014 08:46

Would they have had to exchange the dollars to pounds when they finalised the accounts, or are they allowed to keep them in a dollar account and only change them to pounds later at a time of their choosing when the exchange rate is more favourable? If so, would they need to restate the accounts or declare it later somehow?

[gengulphus] 14/8/2014 17:04

They are paid in dollars and they have to convert to pounds

Partially true, but only partially.

Using completely made-up numbers, let's say they manufacture a piece of kit for $800 and sell it for $2k. They've made a gross profit of $1200 on it - and because the manufacturing costs and the payment they receive are both dollars, that profit figure isn't affected by exchange rates.

But they do have to pay their headquarters / research / etc costs back in the UK, and to do that they have to convert dollars to pounds. Let's say that the piece of kit has a fair share of those costs amounting to $400 one year, and the sterling:dollar exchange rate rises 10% in the following year, and so the corresponding figure the next year is $440. So if they want to maintain their $800 profits after those costs the following year, they have to increase the price of the piece of kit by $40, from $2000 to $2040 - a 2% rise from the 10% increase in the exchange rate.

Or they can alternatively leave their selling price unchanged and let their profits on the piece of kit fall by $40 to $760 - a 5% drop. Or a mixture of the two, e.g. a $20 (1%) increase in the selling price of the piece of kit and a $20 (2.5%) decrease in the profits they make on it.

The other aspect of this is currency translation: the need to state the profits in sterling for the company's accounts, without necessarily having to convert the currency. Let's say they go for leaving the selling price unchanged and letting the profits per piece of kit fall 5% from $800 to $760, and let's suppose that the 10% rise in the exchange rate was from $1.50/£ to $1.65/£. Then the corresponding earnings fall in the company accounts is from 800/1.50 = £533 to 760/1.65 = £461 per piece of kit - a 13.5% fall. Shareholders aren't going to be very happy...

But currency translation for accounting purposes is a relatively harmless effect compared with currency conversion to pay for the sterling costs of the company. In particular, currency conversion adds to costs and so subtracts from earnings, and so can drive earnings negative if continued far enough. On the other hand, currency translation divides into earnings, which means it can reduce them but not drive them negative.

As I said, all of those numbers are made-up. In addition, the whole example is far too simplistic in many ways... The point of it is however that the serious effects of exchange rate movements are those on its sterling costs, not those on its translated-to-sterling earnings. Or to deal with one particular over-simplification, namely the assumption that all payments received are dollar payments, it's the effects of exchange rate movements on its sterling costs offset by those on its sterling revenues.

Gengulphus

[iain123] 14/8/2014 16:18

If they make the kit in dollars and sell in dollars you only loose out on the exchange rate when you bring the profit home - so the kit isn't "more expensive than rivals".

[dlku] 14/8/2014 14:59

eh? They are paid in dollars and they have to convert to pounds

[iain123] 14/8/2014 08:18

"Sterling going against it making its kit more expensive than rivals"

This would be true if they manufactured in the UK but they don't.

[drsmessguide] 14/8/2014 06:54

Sterling falling rapidly vs dollar

[dlku] 14/8/2014 06:38

2014 is a 17 month period to 31 December 2014 and profit will be back end loaded

Costs out of control - 15% higher

Sterling going against it making its kit more expensive than rivals

Chart rolling over

Will be 350p-400p i reckons