Losses at Digital Barriers above forecasts

Surveillance technologies firm Digital Barriers said that full-year revenues will be in line with market expectations as it announced a number of new contract awards.

The AIM-listed company, which serves the international home security and defence markets, said that it has been awarded a £2.0m contract by an existing UK-based customer for the provision of an integrated technology solution that includes its TVI video products, ThruVision passive screeningproductsand OmniPerception facial recognition products.

Meanwhile, Singapore's SingTel has selected the company's TVI technology as the delivery platform for its new Video Surveillance-as-a-Service offering.

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However, in a pre-close trading update for the year to March 31st, Digital Barriers said that operating losses will be slightly above the £6.8m forecast as margins have fallen and higher investment.

The firm said that it has seen some delays to sales closures in the US due to federal budget uncertainty and sequestration, which have resulted in a different mix of revenues across the group and therefore lower margins.

Meanwhile, the company said that a growing global sales pipeline has meant a higher investment in demonstration stock and this, along with one-off write downs on fixed assets within acquired businesses, has increased depreciation.

The company said: "With Digital Barriers' unique technology solutions delivering strong, international sales momentum the outlook for the group remains positive. The board remains comfortable with current market expectations for the financial year ending March 2014 thanks to this ongoing strong sales momentum."