Onwards and upwards for Digital Barriers; full year results show significant progress for the ‘buy and build’ provider of advanced technologies to the international homeland security and defence markets. As would be expected considering its string of acquisitions (see Digital Barriers acquires Visimetrics and work back), top line revenue growth was 55% to £23.2m. But proforma revenue growth was also an impressive 22%.
The services division (purely UK) had flat revenues over the period with ongoing budgetary pressures highlighted. But it’s product sales providing the strong momentum; they were up 34% to £16.6m with international sales doubling to £6.7m (with sales to 20 countries), and UK product sales growing by 92% to £10.3m. The decision to focus on the company’s “most compelling and differentiated offers” is paying off. Recent sales show that there is strong demand for all three products: TVI (wireless video surveillance technology, RDC (remote detection and classification ground sensor), and Thruvision (standoff scanning capability). Proforma revenue growth from those three products was 67%.
Adjusted loss before tax was £7.6m (compared to £6m in the previous year). Digital Barriers will continue to invest, as there are numerous other opportunities to pursue e.g. further international expansion, further development of its integrated solutions, pursuit of commercial sector business, and building a fourth core product focused on facial and object recognition (folliwng its last acquisition). But these results show that its strategy is working; and recent high profile sales should drive further sales momentum and push the company towards breakeven.