Surveillance systems group Digital Barriers PLC (LON:DGB) has warned that it could see around a £10mln shortfall in full-year revenues due to delays in the signing of contracts.
In a trading update for the financial year ending 31 March 2017, the AIM-listed group said while it “currently expects to secure all of these awards, it has now become clear that some or all of them may now be secured in the next financial year.”
It added: “If none of the awards are signed before the end of March, there is expected to be a shortfall of approximately £10m on revenue for the year ending 31 March 2017 compared to current market forecasts.”
Digital Barriers said the contracts in question include what would be its largest-ever sales in to the USA, Asia and the Middle East in addition to the group's most material potential OEM contracts.
In aggregate, and at an absolute level, it added the contracts represent revenue of approximately £14.5mln, with recognition of that revenue, once signed, spread over the coming and future financial years.
Disappointing outturn …
Digital Barrier’s chairman, Tom Black said: "This is a disappointing outturn to the year - a year in which we have achieved some very positive progress across our technologies and in our international markets.
“We are securing larger, more complex sales opportunities, but which carry much longer sales cycles and make it difficult for us to determine the timing of their closure.”
He added: “In light of this disappointment, I will lead a review of our sales and engagement model to ensure that meaningful and sustainable improvements can be made to this critical aspect of how we do business."