Digital Barriers plc Business Update (7415O)
August 11 2014 - 2:00AM
UK Regulatory
TIDMDGB
RNS Number : 7415O
Digital Barriers plc
11 August 2014
11 August 2014
Digital Barriers plc
("Digital Barriers")
Business Update
The Board of Digital Barriers plc (the "Group"), the specialist
provider of advanced surveillance technologies to the security and
defence sectors today provides a business update, with particular
reference to its progress in West Africa and the current Ebola
outbreak.
In May this year, the Board announced its first significant
contract win in West Africa. This contract took the form of a
GBP300,000 deployment of its wide area surveillance solution within
a high-security government location, part of a broader programme
for which the customer has approved additional deployments expected
to be valued at a further GBP1.2 million which were in progress.
The Group has also engaged heavily in ongoing dialogue with
government customers in the same region around oil and gas, border
protection and critical infrastructure programmes, with a strong
expectation of material projects this financial year for which
initial contract discussions were already underway.
As a consequence of the Ebola outbreak, and as a necessary
precaution to guarantee staff welfare, the Group has avoided travel
by sales and technical pre-sales staff to the region during the
last month whilst keeping the situation under constant review.
Following the recent intensification of the situation, the Group
does not now expect staff travel to the region to recommence in the
near term.
Given the Group was negotiating contracts in West Africa for the
deployment of further wide area surveillance solutions with an
expected value in excess of GBP6 million, this will have a clear
impact on the Group's expected revenues from the region this
financial year, particularly in this first half.
Although it now appears unlikely that these contracts can still
be finalized and delivered this financial year with inevitable
consequences for Group financial performance, the Board remains
confident that the contracts in question will ultimately be
fulfilled.
Further the strong ongoing sales traction which the Group is
also experiencing in other geographies, including the United States
and Asia Pacific, provides significant confidence that some of the
shortfall will be recovered from other customers. For example, the
Group recently secured separate contracts for its ThruVision
standoff people screening solution from a major United States
police department and for the security of an Asia-Pacific
leadership summit, each valued at more than GBP250,000. The Group
also continues to see very strong interest for its Integrated
Surveillance Platform for major government security programmes and
for its TVI video platform into defence and law enforcement
agencies around the world and is actively engaged in contract
negotiations in several cases.
Tom Black, Executive Chairman of Digital Barriers commented:
"Digital Barriers has developed some very strong and important
relationships with people within West Africa. Our first thoughts
are with friends and associates there with the hope that this
health crisis can be brought quickly under control.
We have invested significant time and effort in developing a
strategic sales pipeline in the fast growing economies of West
Africa and our hope and expectation is that although we will see
inevitable delays, we can work with our local partners to ensure
these delays are kept to a minimum. In the interim we are already
seeing very significant sales traction with customers across other
target regions and expect positive contract news throughout the
year."
For further information, please contact:
Digital Barriers plc Tel: 020 7940 4740
Tom Black, Chairman
Sharon Cooper, Finance Director
Investec Investment Banking Tel: 020 7597 5970
Andrew Pinder/ Dominic Emery
FTI Consulting Tel: 020 3727 1000
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
TSTEFLBFZVFEBBB
Thruvision (LSE:THRU)
Historical Stock Chart
From Jul 2024 to Aug 2024
Thruvision (LSE:THRU)
Historical Stock Chart
From Aug 2023 to Aug 2024