Digital Barriers plc Trading Update (0427B)
February 27 2014 - 2:01AM
UK Regulatory
TIDMDGB
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: GBP23.3m). 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* GBP7.6m). Cash at the year-end is
expected to be in line with market expectations at approximately
GBP14.0m.
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 GBP0.5m this year, but is
expected to deliver annualised cost savings in excess of GBP3.0m 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
GBP2.0m 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
END
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