SHARES in IndigoVision were down nearly 30 per cent last night after the CCTV specialist told the City it expects to make an operating loss for the year and revealed that it has parted company with chief executive Marcus Kneen.
Investors took flight as the Midlothian-based tech firm said it had run into “more difficult trading conditions” in the Middle East. It cited “unforeseen delays in securing a number of large contracts” in the region.
The company, which also has clients across Europe, Africa and North and Latin America, admitted that its improving sales in the US, where it recently shook up its sales and management team, had failed to offset the decline in the Middle East.
News of its travails came as the firm announced that Mr Kneen had stepped down as chief executive. IndigoVision, which saw operating losses widen and revenue slump in the first half of the year, said that Mr Kneen had stepped down with immediate effect. The executive had held the post since 2011, having first joined the company in 2003.
Mr Kneen has been replaced in an interim basis by Pedro Simoes, who was appointed senior vice president for global sales at the company ago on October 2.
Mr Kneen’s exit comes just months after long-standing mentor Hamish Grossart stepped down as chairman. The high-profile Scottish businessman, who was replaced by technology specialist George Elliott in July, had been chairman for 20 years.
Speaking on the day Mr Grossart announced his departure, Mr Kneen said that the former chairman of EFT Group, Royal Doulton and Scottish Highland Hotels Group had been a major influence on himself and the company.
“Hamish has been a big supporter certainly of IndigoVision and of me,” said Mr Kneen in April. Asked then whether majority shareholder New Pistoia Income, which holds 30.2 per cent of the shares in IndigoVision, had asked Mr Grossart to make way, Mr Kneen said the firm had “very good open communications” with the Swiss-based investor.
IndigoVision said yesterday that its management expectations for the year will now not be achieved, declaring that a full year operating loss will be reported for the period to December 31. It now expects to report revenue of between $41 million and $43m for the year.
The company said in a statement: “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 five per cent higher than last year, due principally to the investment in the US,” where the company restructured its senior team and repositioned the IndigoVision brand earlier this year.
Shares closed down 46p at 116.5p.
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