Indigovision Share Discussion Threads

[cockerhoop] 03/3/2016 17:15

Paul Scott has been an uber bull on IND since before CCTV was invented :-)Interesting if you read the commentary on the Fund he is involved with at Fundamental Asset Management, his holding is earmarked to be ditched on any strength in the share price.I am interested in IND as I think the sector sentiment will come good, I just wasn't reassured by today's outlook and commentary.

[cockerhoop] 03/3/2016 15:12

Paul,

The last time IND had an operating margin of over 10% was 2010. Sales are marginally ahead of an ultra weak comparable presumably including the large middle eastern contract that just missed the YE. Order intake wasn't mentioned. It's the 1st time i'm aware they referencing Chinese competition which would concern me going forward.

They appeared to go out of their way to obscure recent performance with the change in year end and also accounting currency.I don't have a problem with the changes themselves just the paltry information provided to allow year on year comparison. Todays results are the 1st for ages that easy 12 month comparisons could be made.

As I said earlier the balance sheet is rock solid but I don't see any evidence of a tangible pickup in trading. 2016 H1 is likely to be around 2015 H2 levels I imagine.

Anyway you're obviously impressed so good luck with your investment.

[cockerhoop] 03/3/2016 14:54

Agree with that ALS, IND has a rock solid balance sheet but is less broadly based. SNX has the IMS division with a high level of recurring revenue. SNX's specific exposure to O&G has held it back whereas it appears that IND is losing business across the board and therefore pricing power to cheap Chinese competition.

[arthur_lame_stocks] 03/3/2016 14:37

I have been watching both IND and in a similar vein SNX. I think SNX has more potential upside and is better value on most measures except tangible asset backing.

[spooky] 03/3/2016 14:27

Chart beginning to show signs of life, i have picked up a few over the last couple of days.

[paul the octopus] 03/3/2016 14:06

more on @zOctopuz on twitter

[paul the octopus] 03/3/2016 13:44

some fair comments

[dangersimpson2] 03/3/2016 12:55

You are right that if they did this in the past they would have to amortise and I'm not saying the the real profit is $3.4m just pointing out that for a company that is consistently investing in R&D their accounts are chosen to be the most conservative option. There are plenty of companies out there with big R&D investment who would choose the least conservative option.

[paul the octopus] 03/3/2016 12:25

on a side note, am impressed with the management getting things under control quickly and having the confidence to reinstate the dividend and reiterate the full year guidance anyone else impressed with that?

[cockerhoop] 03/3/2016 10:09

Thats clearly rubbish DS2, as if they'd have done that consistently they would have to amortise it!

In answer to Paul - what's not to like?

Rev down 23%
Gross margins down from 57.9% to 51.4%
Increased Chinese Competition
Sales H116 only marginally ahead of ultra weak H115 ($22.6m)

Not at all impressed

[dangersimpson2] 03/3/2016 09:54

They expensed $4.4m of R&D expenditure. In a less conservative company this would have been capitilised which would have made a $0.9m loss into a $3.5m profit.

of course there is some doubt whether that R&D spending is generating returns but it is not insignificant in a $17.7m market cap company.

[paul the octopus] 03/3/2016 09:10

so far:* no debt* paying dividend* better order book * better start in H1 2016* turned H1 loss into H2 profit* delay in contract, not cancellation* share price half of what it was last year* new contracts just announced fee days goso what not to like here?

[topvest] 03/3/2016 08:42

Yes agreed. Mildly positive in my view. Cash position improved and cost base very much sorted out. Hopefully, some of those lumpy contracts will come back in. Certainly optimistic from this level. More upside potential than downside in my view.

[gengulphus] 03/3/2016 08:16

Yes - see .

No obvious surprises compared with what their pre-close trading statement led us to believe - i.e. second half was profitable, but by nowhere near enough to prevent the year as a whole being loss-making (H1 loss of £1.36m, H2 profit of £0.52m, overall loss of £0.74m). All due to a major fall in revenues, followed with some delay by major cuts to operating expenses.

Dividend resumed after passing the interim, with a final of 2.5p. Also not a surprise, given the full year results and that the interims said "It is also our policy that dividends relate to earnings and, given the first half loss, the Board has decided not to pay an interim dividend this year. We currently expect to recommend a final dividend to shareholders along with the annual results."

Gengulphus

[kiwihope] 02/3/2016 09:41

Results tomorrow?

[topvest] 26/2/2016 21:25

Well spotted - does sound encouraging!

[iain123] 26/2/2016 12:24

I like that "signing a multi-million dollar deal with IndigoVision reseller, ATECO"

[exotic] 26/2/2016 11:09

Read the caption above the last photo. Does this mean the delayed Middle East contract - mentioned in the results and broker report - has now been sealed and should impact the next set of results?

[topvest] 06/1/2016 21:19

Think that is reasonably positive overall. They must have asked about the dividend. I guess the 5p looks like it will be paid provided trading conditions are OK by March.

[rmillaree] 06/1/2016 17:06

In some respects the lack of a downgrade to 2016 numbers is good news and probably explains why the shareprice hasn't dipped too much despite them missing 2015 prediction.

Oh hold on a minute the 2016 figures will now include the estimate of $0.8 mill profit from this delayed contract so they have effectively reduced the estimates for 2016 on a prior LFL basis. Strange how "delayed contracts" never seem to come with an upgrade to the next period in which the income will fall!!

Factor in the uncertainty over the delayed contract - I.e we have left in for now sounds like it is waiting to be removed later when cancelled - and we will probably end up with two $0.8 mill shortfalls one H1 16 and one in H2 15.

Strewth i aint even owned my shares in this company for 5 months and i am starting to become as depressive in thinking as everyone else who has been around here forever. (I was kinda hoping i had bought in when all the bad news was out and things were on the up).

HeyHo at least i only have 350 days to wait till my next XMAS holidays - yay

All i need know is an IND management recommended all share offer by Visilink at 20% below market price and then things really would be rocking and rolling.

[exotic] 06/1/2016 11:10

N+1 Singer Broker Note just released.

[topvest] 29/12/2015 19:35

Not sure, but yes that did cross my mind as well. Maybe not necessarily oil and gas but exporting to countries impacted heavily by the oil price. IndigoVision is the sort of company that disappoints and achieves excess in equal measure depending on the status of lumpy large contracts. Think we are all hoping that in the next 6m they get some big orders back in and they start surprising on the upside rather than the downside.