Digital Barriers shares fall as contract delays dent outlook

(MENAFN- ProactiveInvestors) Surveillance technology group Digital Barriers (LON:DBG) dropped around 15% as the company warned contract delays will mean full year revenues will fall short of expectations.

Two significant contracts are now expected to close in the early part of the next financial year the company told investors. Revenues for the 12 months to March 31 are still expected exceed the £19mln reported for the previous year it added.

Similarly losses for the current financial year are now expected to have improved compared with last year but will be larger than previously anticipated.

Digital Barriers does however repeat its aim for the business to break even in the year ending March 2016.

"It is frustrating that the timing of sales closures has impacted our performance this year but we firmly believe that we remain on the right long-term course” said chief executive Zak Doffman.

The company said it remains focussed on securing new customers targeting flagship government and commercial clients.

Indeed in a separate statement today it announced new contracts worth £1.5mln including a deal for video surveillance with a significant client in the commercial sector.

The contract with the customer in the UK industrial services sector is worth £1mln initially and it can be extended for a further £3.5mln. It said it also won a deal to provide a surveillance system for a leading energy company.