Surveillance technology business, Digital Barriers - which only floated on Aim in March 2010 - is the new security kid on the block. Since then it has acquired 12 security product companies and, with the ongoing global terrorist threat, security is one sector which definitely isn't in recession - leaving the shares with plenty of potential.
To date, the intellectual property that the group has acquired from small niche businesses has provided it with three main products. They comprise video streaming over an ultra-low bandwidth onto tablet devices, remote control monitoring, and body energy screening products - which can detect objects under a person's clothing and has come to the group after March's purchase of ThruVision. Last year’s results do, however, show the short-term problems associated with rapid growth. If deferred consideration factors are ignored, the group's adjusted loss rises from 2011's £2.7m to £6.0m and administration costs have jumped from £7.1m to £15.8m as the company has opened overseas offices and employee numbers have risen. Indeed, the company broker Investec Securities doesn't expect the group to break even until 2015-16.
DIGITAL BARRIERS (DGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 176p | MARKET VALUE: | £ 77.1m | |
| TOUCH: | 172-179p | 12-MONTH HIGH: | 197p | LOW: 123p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 103p* | NET CASH: | £15.3m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011† | 6.56 | -4.61 | -15.4 | nil |
| 2012 | 15.0 | -4.10 | -8.11 | nil |
| % change** | +148 | - | - | - |
Aim: support services *Includes intangible assets of £29.9m, or 68p per share †13 months **Annualised | ||||
