Digital Barriers (DGB) provides government agencies with security technology, including live video streaming, remote detection sensors and body scanning. It's growing fast, too - 12 acquisitions have been made since its Aim flotation in 2010 and the group has beefed up its arsenal of intellectual property.
Moreover, and led by its Asian presence, international sales now generate 27 per cent of group revenue - from 22 per cent the year before. Growth beyond Asia also looks likely. "Asia is where we've been longest, and we're finding sales cycles are taking two years," says Colin Evans, managing director. "As we've only been in the US 18 months, we'd expect to see revenue growth there soon. In the Middle East, we're a bit further behind in the sales cycle."
Mr Evans maintains that solid integration progress has been made with the various acquisitions, which should mean costs start to fall. That can't come too soon - administration costs jumped by a hefty 56 per cent to £10.3m year on year. The group's cash pile is being quickly whittled down, too - it stood at £25m a year ago. Mr Evans, however, doesn't rule out further acquisitions if the right opportunities should arise.
Broker Investec Securities expects a full-year loss per share of 12.2p (a 12.8p loss per share for 2012), with profitability unlikely for at least three more years.
DIGITAL BARRIERS (DGB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 146p | MARKET VALUE: | £63.9m | |
| TOUCH: | 142-149p | 12-MONTH HIGH: | 183p | LOW: 119p |
| DIVIDEND YIELD: | NIL | PE RATIO: | NA | |
| NET ASSET VALUE: | 89p* | NET CASH: | £7.3m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 4.81 | -4.48 | -10.2 | nil |
| 2012 | 8.08 | -7.06 | -15.2 | nil |
| % change | +68 | - | - | - |
*Includes intangible assets of £27.9m, or 64p a share | ||||
