Digital Barriers plc Trading Update and US ThruVis Contract (2793M)
October 12 2016 - 2:00AM
UK Regulatory
TIDMDGB
RNS Number : 2793M
Digital Barriers plc
12 October 2016
12 October 2016
Digital Barriers plc
("Digital Barriers" or the "Group")
Trading Update and US ThruVis Contract
Digital Barriers plc (AIM: DGB, the "Group"), the specialist
provider of visually intelligent solutions to the global
surveillance, security and safety markets, provides an update on
trading for the six months ended 30 September 2016. The Group also
announces today the award of a contract with a US government agency
to begin implementing the Group's ThruVis technology for
mass-transit security.
Trading Update
Overall Group revenue for the period, which includes a full
contribution from Brimtek (which was acquired on 1 March, 2016) is
expected to be approximately double that achieved in the same
period last year. Both organic revenue and adjusted losses are
expected to be broadly flat year-on-year, although neither of these
include the benefit of material US government contracts awarded in
September for delivery in the second half of the financial year.
Total organic contracted revenue for the period grew 66% over the
same period last year.
Including the September contract awards, the Group has secured
approximately 50% of the Board's revenue expectation for the
financial year as a whole.
US ThruVis Contract
In addition to the US$4.6m and US$2.2m US contract awards
announced last month, the Group is pleased to report that it has
secured an additional US$1.65 million contract with a US government
agency. This contract will see Digital Barriers begin to implement
its ThruVis solution to help protect mass transit systems and other
public spaces across the US against 'soft target' terrorist
attacks. ThruVis is a unique camera technology that can detect
objects such as weapons and explosives concealed under clothing.
The technology is mobile, rapidly deployed, and operates without
compromising passenger throughput, safety or privacy. The majority
of this contract is expected to be delivered in this current
financial year.
This ThruVis contract brings to more than US$10.0 million the
total value of contracts secured with US federal agencies by the
Group in September, including an initial contract of US$1.0 million
for the Group's EdgeVis technology from another flagship agency
which is a new customer not yet announced. We expect the vast
majority of this US$10.0m of contracted revenue to be delivered
before the end of this current financial year.
Whilst organic US revenues increased fivefold in the first half
of the year over the same period last year, growth was somewhat
constrained by stock availability as we approached the end of the
half. The Board expects further material sales into these and other
agencies, both in the second half of this year and in future years.
The scale of this growth has been enabled by the acquisition of
Brimtek and the additional customer reach and resource this
acquisition has brought.
Zak Doffman, Chief Executive Officer of Digital Barriers
commented:
"Momentum in the business remains very strong, and the organic
revenue growth we delivered last year has continued with very
strong sales momentum in the period. US growth is the major news in
the first half, illustrating why the Brimtek acquisition was such a
significant step forwards for us. Our US customers, the main
agencies across the Departments of Justice, Homeland Security and
Defense, continue to invest in our capabilities, giving us an
excellent platform for future growth.
The ThruVis contract with the US government agency is a very
significant step forwards for our technology. It serves to
establish it as the leading solution of its kind, globally, for
protecting soft targets from terrorist attack, and it is
particularly pleasing to see it come at the same time as the
strategic partnership for ThruVis announced with G4S earlier this
week.
Our focus for the remainder of this financial year is clear. We
will work to drive continued sales momentum, delivering the revenue
growth needed to take the Group to break-even and beyond. We will
also focus on further licence deals for the Group's IP which will
bring more material recurring revenues into the Group for the first
time."
For further information
please contact:
Digital Barriers plc +44 (0)20 3553 5888
Zak Doffman, Chief Executive
Officer
Sharon Cooper, Chief Financial
Officer
Investec Investment Banking +44 (0)20 7597 5970
Andrew Pinder / Patrick
Robb
FTI Consulting LLP +44 (0)20 3727 1000
Edward Bridges / Matt Dixon
About Digital Barriers:
Digital Barriers provides visually intelligent solutions to the
global surveillance, security and safety markets. We deliver
zero-latency streaming and analysis of secure video and related
intelligence over wireless networks, including cellular, satellite,
IP mesh and cloud, utilising significantly less bandwidth than
standard technologies.
Our rapidly-installed fixed and mobile solutions for covert,
remote and wide-area deployments, as well as vehicle and body-worn
applications, have been sold into more than fifty countries, and
have been proven in some of the world's most demanding operational
environments. We also provide advanced video content analysis and
body scanning to identify safety concerns and threats in
real-time.
www.digitalbarriers.com
This information is provided by RNS
The company news service from the London Stock Exchange
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