Digital Barriers tanks on warning of wider losses

26th Feb 2015 11:24

Defence group Digital Barriers tanked on Thursday, after the company warned losses for the year would be wider than forecast.Although revenues for the year to 31 March should be higher than the £19m reported last time, they will be lower than management had previously guided due to a delay in two major contracts.Consequently, losses are set to be wider than forecast, though they'll be narrower than the £12m reported last year."It is frustrating that the timing of sales closures has impacted our performance this year," said chief executive Zak Doffman"Our focus now is to turn modest initial sales into material follow-on sales from next year."The group also announced a pair of new contracts had been clinched, including a £1m deal to supply its TVI video surveillance technology to an undisclosed customer with an option for an additional £3.5m over the next two years.The AIM-listed company has also won a £500,000 follow-on deal with a unspecified international energy company.Both contracts are expected to be delivered in the first half of the coming financial year and the company said it remained on the right long-term course.Digital Barriers shares were down 20% to 40.00p at 11:48 on Thursday.