24 November 2017 – trading update
The group has issued a profit warning stating that its results for 2017 will now be below expectations with a loss for the year of around $2.5m expected as compared with previous expectations of a profit of some $1.3m. The warning comes due to difficult trading conditions in the Middle East with unforeseen delays in a number of contracts. Following this news, the chief executive, Marcus Kneen, has resigned. This is clearly disappointing news from the company although the interim chief executive Pedro Simoes has purchased 15,000 shares at 120p. We do believe that the long term prospects for the group are promising acting in the video security business. The share price reaction looks harsh in our view and we therefore rate the shares as a SPECULATIVE BUY.