Coe sees losses deepen as it invests for growth

VIDEO surveillance company Coe Group has seen its half-year operating losses more than double after investing in new sales staff, new products and new technology as it looks to expand its business.

The Leeds-based company, which supplies its products to monitor traffic on London's roads as well as for the Martignano Tunnel in Italy and rail systems in Holland, Hong Kong and Taiwan, said today that operating losses came in at £573,000 in the six months to December 31 compared to a loss of £252,000 for the same period last year.

Turnover was down to £2.07m compared to £2.47m last time as management concentrated on contract profitability.

Coe's new chairman Dr Alison Fielding, who took over when Stephen Allott resigned in January, said that the company was continuing to “execute and achieve” its growth plan laid out a year ago.

“The results of the sales force expansion are now starting to show tangible benefits through an increased number of firm orders being won,” said Dr Fielding, who added that the orders won this year were the highest the company has experienced for four years.

The group has high-profile contracts with Transport for London for bus lane and congestion charge enforcement in the capital as well as supplying CCTV systems to 35 towns and cities in the UK including Leeds and Bradford.

International contracts include Randstad Rail in Holland and with Siemens for the Kowloon Canton Railway in Hong Kong as well as for underground rail systems around the globe.

The group is focusing on the growing need for surveillance systems for counter-terrorism, crime prevention and traffic efficiency.

Dr Hastings added: “The company has sharpened its focus on the transport and traffic segment of the global video surveillance markets. This is the fastest growing segment of the global video surveillance markets and the company's references, reputation and products are well received.

“The board is focussed on continuing to deliver the benefits of this investment during the current period to establish the company at a materially higher level,

and form a platform for further growth.”