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Trading Update

27 Feb 2014 07:00

RNS Number : 0427B
Digital Barriers plc
27 February 2014
 



27 February 2014

 

Digital Barriers plc

 

("Digital Barriers" or the "Group")

 

Trading Update

 

The Board of Directors (the "Board") of Digital Barriers (LSE AIM: DGB), the specialist provider of advanced surveillance technologies to the international homeland security and defence markets, provides an update on trading for the current financial year, ending on 31 March 2014.

 

As a result of delays to certain sales closures the Board now expects that Group revenues for the period will be slightly below last year (FY13: £23.3m). The delays are the result of both protracted customer procurement processes and internal delays in releasing new products in response to customer demand. As a result of this revenue shortfall, losses will be adversely impacted and are expected to be approximately 40% higher than last year (FY13: Adjusted Loss before Tax* £7.6m). Cash at the year-end is expected to be in line with market expectations at approximately £14.0m.

 

In spite of these delays, the Board re-iterates its aim, initially expressed in October 2013, of reaching break-even and operational positive cash flow in the year ending 31 March 2015. A number of factors support this confidence.

 

During the second half of the current financial year the Board has accelerated a planned rationalisation of the Group's cost base to concentrate resources on a number of strategic products, principally variants of its TVI technology. This rationalisation has incurred cash costs of approximately £0.5m this year, but is expected to deliver annualised cost savings in excess of £3.0m in FY15.

 

The Group's sales pipeline remains strong and numerous significant sales are expected to close in the next few months which will contribute to revenues in the next financial year. The first of these, awarded in February 2014 is worth in excess of £2.0m and will be recognised in the first half of FY15.

 

 

Tom Black, Executive Chairman of Digital Barriers commented:

 

"Despite these delays, we still have a very strong sales pipeline and product portfolio which should lead to material progress in the coming months. The strategic opportunity for Digital Barriers remains unchanged and the Board remains optimistic about our longer-term prospects."

 

 

* As shown in the Consolidated Income Statement

 

 

 

For further information, please contact:

 

Digital Barriers plc

Tel: 020 7940 4740

Tom Black, Executive Chairman

Colin Evans, Executive Director

Investec Investment Banking

Tel: 020 7597 5970

Andrew Pinder

Patrick Robb

FTI Consulting

Tel: 020 7831 3113

Matt Dixon

Edward Bridges

Elodie Castagna

 

 

About Digital Barriers

 

Digital Barriers provides advanced surveillance technologies to the international homeland security and defence markets, specialising in 'edge-intelligent' solutions that are designed for remote, hostile or complex operating environments. We work with governments, multinational corporations and system integrators in the defence, law enforcement, critical infrastructure, transportation and natural resources sectors. Our surveillance technologies have been successfully proven on some of the most demanding operational and environmental deployments around the world.

 

www.digitalbarriers.com

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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