Digital Barriers' total group revenues rose by 95% to £13.0m inthe six months to the end of September, including a full contribution from Brimtek which was acquired on 1 March.
Organic revenues, excluding Brimtek, were broadly flat at £6.9m (H116: £6.7m), although international organic revenues grew 18% to £6.1m (H116: £5.1m), and would have been close to double had contracts secured in September delivered before the period-end.
Organic sales (i.e. new order intake) in the period grew strongly, up 67% to £13.2m (H116: £7.9m), of which £9.3m was secured in September alone, contributing to the group having booked approximately 50% of the board's revenue expectation for the financial year as a whole by the period-end.
- £5.2m of organic contracted orders carried over for delivery in the second half, up 64% on the contracted order book for second half delivery at the same point last year (H116: £3.2m)
- Adjusted losses before tax from continuing operations for the period were flat at £4.2m (H116: £4.2m), with the unadjusted loss from continuing operations down 8% to £4.8m (H116: £5.2m)
- Brimtek now fully integrated, with good progress made in evolving its focus from third-party products to the Group's proprietary technologies; as a result, organic revenue growth in the United States was especially strong in the period, with revenues from the Group's own solutions up more than fivefold to $5.6m (H116: $1.0m)
- Sales highlights in the period included more than $8m of EdgeVis video surveillance solutions to a number of US flagship agencies, a $1.65m investment in ThruVis by the US Transportation Security Administration (TSA), a £2m follow-on contract from BT Redcare, and a £1m contract with an existing transportation customer in Asia-Pacific
- Net cash at the end of the period was £3.4m (H116: £5.9m), and since the period-end the Group has established a £10m revolving credit facility to help provide working capital to underpin further growth
Chairman Tom Black said: "The highlight of the period was undoubtedly organic sales growth, up 67% across the Group, with the organic contracted order book carrying into the second half up 64% on the year before. Our US business was especially strong, with material sales and revenue growth for our own solutions into multiple flagship government agencies.
"This illustrates why it was so important to acquire a platform in the US on which to build. The period saw strong US momentum in EdgeVis surveillance sales, and an initial TSA investment into ThruVis for mass-transit security, which is especially significant given that it is the world's pre-eminent transportation security authority, often setting international standards.
"It is clear that we have now established a strong organic growth engine, selling our highly-differentiated solutions into a wide range of flagship customers around the world. Growth itself is not our primary challenge, but rather the timing of contract awards in relation to financial period-ends. We have developed a business that can grow materially over the coming years, but managing the orderly timing of that growth will be a continuing challenge.
"The global security context continues to worsen, with a focus on mass-migration, international terrorism and escalating regional tensions, all of which drive increased spend on border and homeland security, specialist areas of defence and cross-border identity assurance. We have compelling, proven and uniquely capable solutions across all of these areas, and we have customers and partners in each of the major markets around the world. Our focus remains on continued sales momentum leading to material revenue scale, break-even, and then consistent year-on-year profitability."
At 9:35am: (LON:DGB) Digital Barriers PLC share price was -4.5p at 39p