Source - RNS
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.

This information is provided by RNS
The company news service from the London Stock Exchange