LONDON (Alliance News) - Digital Barriers PLC said Tuesday said it remains comfortable with its expectations for its current financial year, as it posted a widened pretax loss for its recently ended financial year mostly as a result of an impairment and reduced margin in its Products segment.
For the year to end-March, the company posted a pretax loss of GBP18.7 million, widened from a pretax loss of GBP15.1 million the year before, as revenue rose slightly to GBP19.4 million from GBP19.0 million, mostly as a result of a GBP6.3 million impairment related to the company's Products division.
Administrative costs fell to GBP19.2 million from GBP24.3 million a year before due to a restructuring programme undertaken in the previous year.
Revenue in the Asia Pacific region doubled, which helped offset a fall in UK revenue. Digital Barriers said continued pressure on public sector budgets in the UK meant it was unable to replace revenues it realised in the previous year from a large programme with the Ministry of Defence. It has brought in more experienced leadership for the UK and Europe region, which helped drive an improved performance in the UK in the second half.
It expects the UK to be particularly second-half weighted in the coming year due to delays in government contract awards after the general election period, but said it will offset this "where possible".
In its Products segment, gross margin shrank to 43% from 54% a year before, mostly as a result of a shift in the sales mix, with a lower proportion of software sales and an increase in sales of its ThruVision people-screening product, which has a lower gross margin.
"Now our focus is on delivering stronger progress in the US and Middle East, continued success in Asia Pacific, and a renewed impetus in the UK and Europe, where we are securing new strategic government and commercial accounts," said Chief Executive Officer Zak Doffman in a statement.
Shares in Digital Barriers were trading flat at 36.50 pence Tuesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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