Digital Barriers plc Trading Update (2309B)
April 02 2013 - 2:01AM
UK Regulatory
TIDMDGB
RNS Number : 2309B
Digital Barriers plc
02 April 2013
2 April 2013
Digital Barriers plc
("Digital Barriers" or the "Group")
Trading Update
The Board of Digital Barriers (LSE AIM: DGB) (the "Board"), the
specialist provider of advanced surveillance technologies to the
international homeland security and defence markets, provides an
update on trading for the financial year ended 31 March 2013.
During the year the Group has continued to trade well and the
Board expects to report revenues and growth rate broadly in line
with market expectations. There have been notable successes in the
UK, including a further material sale of three of the Group's core
technologies to an existing UK-based customer at the end of the
period, as referenced in a separate announcement this morning.
Work to internationalise the Group's sales efforts has delivered
good returns, with initial sales into the Middle East and very
strong sales growth in Asia Pacific driven by significant deal
closures in the Republic of Korea, Hong Kong and Singapore. As
announced this morning, the Group has also signed a new strategic
partner relationship with SingTel in Singapore for the provision of
the Group's video surveillance products as a managed service. The
Group continues to see strong interest in the United States for its
products, but has seen some delays to sales closures caused by
federal budget uncertainty and sequestration. Despite these delays,
the sales pipeline in the United States remains solid and the
Group's technology has now been selected by a number of major
government agencies.
The delays to sales closures in the United States have resulted
in a different mix of revenues across the Group, delivering some
slightly lower margin sales towards the end of the period.
Therefore the operating loss for the period will be slightly higher
than market expectations at approximately GBP6.8 million. In
addition, the growing global sales pipeline has meant a higher
investment in demonstration stock and this, together with one-off
write downs on fixed assets within acquired businesses, has
increased depreciation to approximately GBP0.8 million. Subject to
audit, the Board therefore expects to report an adjusted loss* for
the period including depreciation of approximately GBP7.6
million.
With Digital Barriers' unique technology solutions delivering
strong, international sales momentum the outlook for the Group
remains positive. The Board remains comfortable with current market
expectations for the financial year ending March 2014 thanks to
this ongoing strong sales momentum.
The Group intends to announce preliminary results for the year
ended 31 March 2013 on 29 May 2013.
*Adjusted loss is the Group's loss before tax, excluding
amortisation of intangibles initially recognised on acquisition,
deal costs, adjustments to deferred consideration and
reorganisation costs.
For further information, please contact:
Digital Barriers plc Tel: 020 7940 4740
Tom Black, Executive Chairman
Colin Evans, Managing Director
Zak Doffman, Development Director
Investec Investment Banking Tel: 020 7597 5970
Patrick Robb / Andrew Pinder / Dominic
Emery
FTI Consulting Tel: 020 7831 3113
Edward Bridges / Matt Dixon / 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
END
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