In a positive H1 trading update IndigoVision unveiled a fourth half year period of sequential top-line growth. As a result of revenues rising to $24.1m (+8% y/y) and cost rationalisation undertaken in the prior year, management expect to deliver positive half-year operating profits for the first time since 2014. The balance of net cash held by the group rose to $2.7m by the end of the H1 period (Dec-18: $2.0m). Current trading looks in-line with expectations, following similar seasonal H2 weighting patterns as in prior years, so we make no changes to our full year forecasts. A 1-year forward P/E multiple of 6.6x looks attractive, and provided management are able to successfully deliver continued positive top-line momentum in the medium-term, upside potential is high.
