TIDMDGB
RNS Number : 7977D
Digital Barriers plc
02 May 2017
2 May 2017
Digital Barriers plc
("Digital Barriers" or the "Group")
Framework Contract and Trading Update
Framework contract with leading services provider into the
Energy and Maritime sectors
Further trading update for the twelve months ended 31 March
2017
Digital Barriers plc (AIM: DGB, the "Group"), the specialist
provider of visually intelligent solutions to the global
surveillance, security and safety markets, provides the following
update.
Framework contract secured
The Group is pleased to announce that it has secured a framework
contract with an existing customer: one of the world's leading
remote communications providers serving the Energy and Maritime
sectors. Under the framework contract, the Group's EdgeVis
technology will be used to deliver video services over constrained
satellite bandwidths to Energy and Maritime customers in remote
locations around the world.
This new framework contract, one of several that were in the
final stages of negotiation at the time of the Group's trading
update on 24 March 2017, includes minimum value thresholds for the
Group of $0.75m in the current financial year and then $2.25m in
each subsequent financial year thereafter, for the duration of the
agreement, in order for the customer to maintain its exclusive
rights to the resale of certain specialist Digital Barriers'
products into the Energy and Maritime sectors.
Further update on trading
The Group also provides a further update on trading for the year
ended 31 March 2017. Headlines from the period include:
-- Contracted total revenue (sales) expected to be GBP31.0
million, representing an increase of 46% over the prior year (FY16:
GBP21.1 million)
-- Contracted organic revenue (sales) expected to be GBP20.8m,
representing an increase of 23% over the prior year (FY16: GBP16.9
million).
-- Reported total revenue expected to be GBP26.5 million, an
increase of 26% over the prior year (FY16: GBP21.1 million)
-- Total secured backlog under contract at 31 March 2017
increasing more than 75% on the same position last year at GBP11.4
million (FY16: GBP6.5 million).
-- Reported organic revenue expected to be GBP16.2 million, a
decrease of 11% over the prior year (FY16: GBP18.2 million)
-- Organic secured backlog under contract at 31 March 2017
expected to increase more than fivefold year on year to GBP5.4
million (FY16: GBP1.0 million).
-- EBITDA is expected to be in line with market expectations.
-- Net cash at 31 March 2017 was GBP1.0 million.
In the Group's previous trading update on 24 March 2017, details
were given of eight contracts and framework agreements that had
been expected to close by the end of the year. Although none of
those contracts were secured by 31 March 2017, four have already
been secured in the month following the end of the financial year
and three of the remaining four contracts are expected to close in
the first half of the current financial year.
The Group has made better start to the current financial year,
with more than GBP15 million of revenue now in contracted backlog
for delivery during the current financial year. This stronger order
book will help the Group address its challenge of contract award
timing and delivery and, consequently, its ability to predict
financial performance around accounting period ends.
As illustrated by the G4S and Careem contract awards announced
earlier this month, the Group is also increasing its focus on
channel sales and licensing deals. These types of relationship
should provide the potential for recurring revenues and improve
revenue visibility, but can take time to negotiate and secure. The
Group has other similar deals in negotiation, which it expects to
complete and announce during the current financial year.
Zak Doffman, CEO, said:
"We continue to work through closing the opportunities in front
of us and we are making progress. We are keenly aware that only by
building our forward order book, and securing recurring revenue
deals, can we better manage and predict our financial performance
on a period by period basis.
So for instance, this year we have already announced notable
contracts with Careem, with G4S Europe and with one of our major US
customers. The latest framework contract, announced today,
significantly expands our sales reach across the energy and
maritime sectors. Such frameworks are a key part of our strategy,
and this month a similar framework agreement for ThruVis led to the
first sale of the technology into the mainland China mass
transportation market, part of a significant ongoing procurement
programme.
The current financial year has begun as we would have hoped and
we have signed many of the contracts deferred from the year ended
31 March 2017 early in the current period."
For further information, please contact:
Digital Barriers plc Tel: 0203 553 5888
Zak Doffman, Chief Executive
Officer
Sharon Cooper, Chief Financial
Officer
Investec Investment Banking Tel: 020 7597 5970
Andrew Pinder/ Dominic
Emery /
Patrick Robb
FTI Consulting Tel: 020 3727 1000
Edward Bridges/ Matt Dixon/
Harry Staight
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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