LONDON (Alliance News) - Digital Barriers PLC Wednesday reiterated its goal to move towards break-even in the current financial year, despite posting a widened pretax loss in the previous year to end-March.
Digital Barriers, which produces surveillance technologies for the security and defence markets, posted a pretax loss of GBP15.1 million, widened from GBP10.8 million in the previous year, as revenue declined to GBP19.0 million, from GBP23.3 million.
It blamed a lower contribution from legacy and non-core products, longer than expected customer procurement cycles and delays in bringing its new products to market for the revenue fall.
The company said it had brought eight new products to market in the fourth quarter of the year, which drove sales up towards the end of the year. However, most of these sales will be converted into revenues in the current financial year.
During the year, the company raised GBP18 million in a placing with shareholders to strengthen its balance sheet and provide working capital. It also sought to cut its cost base, reducing headcount to 193, from 212, and lowered its number of offices, resulting in a reduction of GBP3 million per year in costs.
The company has invested in its US sales team, which helped it secure new deals with US Federal and Defence Agencies. Outside of the US, the company won new customers in Nigeria, Turkey and Japan, and won a deal with a UK telecoms operator.
Its UK business struggled during 2013, hit by UK government budget constraints. However, Digital Barriers expects the business to return to growth in 2014 on recent sales wins.
The company increased the portion of revenues derived from its core products to 52%, from 36% in the previous year. It improved its gross margin to 45.8%, from 42.8%, as improved margins in its products division offset weaker margins in its services division.
Shares in Digital Barriers were trading down 1.3% at 115.53 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
