Digital Barrier Share Discussion Threads

[oregano] 20/11/2014 13:55

they chewed up £7m in cash in the last six months. leaving them with £7m. One would think they will need to raise more. they are so reliant on project income which has been volatile. I can't yet see a compelling reason to buy, but I wouldn't claim to know their product set well. How much of a USP do they have?

[rambutan2] 20/11/2014 02:18

Bit of a horror story on the share price since the summer, with another lurch down this week. Interims are out next week, so is there a placing to accompany them? Or is there just a buyers strike until the said results give some guidance on where things stand? Hmmm...

[hedgehog 100] 06/11/2014 21:09

"MEGABUYTE

GOS Systems to list on AIM

15 July 2013

... First Thoughts

We can perhaps best describe GOS as the ears to Digital Barriers eyes in terms of homeland security. Comparing the two companies further, whilst Digital Barriers continued along an aggressive M&A strategy post IPO, GOS looks to be more of an organic play earlier on in life. If this turns out to be the case, we see the ability to concentrate on organic growth at an early stage as beneficial for a company in what appears to be a high growth market. Moreover, McQueen was keen to highlight that the businesses that GOS has acquired already have strong customer relationships in a market that has high barriers to entry. ... "




04/11/2014 08:02 UKREG Touchstone Gold Limited Acquisition

"Acquisition of GOS Systems

London, 4 November 2014 - Further to the announcement of 3 November 2014, Touchstone announces that it has successfully concluded an investment in accordance with its investment policy.

Through a wholly owned special purpose vehicle, Touchstone has acquired the assets, intellectual property rights and businesses that constitute GOS Systems (website: a UK security group providing a range of leading-edge tactical intelligence gathering and secure communication solutions for law enforcement, homeland security and government agencies around the world. GOS Systems was recently placed in administration and the acquisition by Touchstone was from the joint administrators (see below).

As part of the transaction, the on-going support of key operational and administrative personnel has been secured to ensure the continuity and consistency in the management and administration of the business. Touchstone's investment in GOS Systems means that essential services provided to a variety of agencies will continue unaffected, and also that existing suppliers and employees and other stakeholders will be secured. ... "

[opodio] 13/8/2014 07:35

another day, more cash burnt here

who will pay the wages next month?

[opodio] 11/8/2014 21:53

Will need a cash call to survive imho

[onjohn] 11/8/2014 07:41

.....this will have a clear impact

[simon gordon] 11/8/2014 07:14

Never seem to get any momentum, lumpy order intake and now Ebola has knocked them off rhythm.

11/8/14:

The Board of Digital Barriers plc (the "Group"), the specialist provider of advanced surveillance technologies to the security and defence sectors today provides a business update, with particular reference to its progress in West Africa and the current Ebola outbreak.

In May this year, the Board announced its first significant contract win in West Africa. This contract took the form of a £300,000 deployment of its wide area surveillance solution within a high-security government location, part of a broader programme for which the customer has approved additional deployments expected to be valued at a further £1.2 million which were in progress. The Group has also engaged heavily in ongoing dialogue with government customers in the same region around oil and gas, border protection and critical infrastructure programmes, with a strong expectation of material projects this financial year for which initial contract discussions were already underway.

As a consequence of the Ebola outbreak, and as a necessary precaution to guarantee staff welfare, the Group has avoided travel by sales and technical pre-sales staff to the region during the last month whilst keeping the situation under constant review. Following the recent intensification of the situation, the Group does not now expect staff travel to the region to recommence in the near term.

Given the Group was negotiating contracts in West Africa for the deployment of further wide area surveillance solutions with an expected value in excess of £6 million, this will have a clear impact on the Group's expected revenues from the region this financial year, particularly in this first half.

Although it now appears unlikely that these contracts can still be finalized and delivered this financial year with inevitable consequences for Group financial performance, the Board remains confident that the contracts in question will ultimately be fulfilled.

[protean] 09/5/2014 15:59

Investec - 155p target

[protean] 09/5/2014 10:10

Quite a bit of buying recently. A good few people interested in picking up stock at the lows it seems. Price starting to move up again and a more optimistic outlook in the recent trading update:

"These contract announcements illustrate the scale of the opportunity available to us. We now have a unique product set and we are seeing increasing sales traction. The Board remains optimistic about the Company's longer-term prospects and reiterates its aspiration to move towards break-even in the current financial year."

[she-ra] 06/4/2014 20:14

How does it suggest they are going places when they have eaten through cash and revenues are in reversal?

This is a jam tomorrow company that hasn't been delivering.

[masurenguy] 06/4/2014 19:16

This has recently come up onto my radar screen. The shareprice is close to its all time low following a profits warning in February but recent contract announcements appear to be very encouraging.

Management has a buy & build strategy. Since listing 4 years ago (@100p) they have raised £77m in 4 tranches - including the IPO - (@160p, 145p & 140p respectively) and have spent £14.5m on 4 aquisitions. During this period sales have grown from £6.5m to £23m and they have incurred cumulative losses of circa £26m (£4.4m to a projected £10m in y/e March 14) but they've also stated that they believe they'll achieve break-even this year (Y/E March 15). Clearly that remains to be seen but recent contract wins should make a positive contribution toward attaining that aspiration.

With the most recent fund raising of £18m (Oct 13) they have a strong balance sheet which should support growth and even a further loss (if incurred) this year. They also have an impressive roster of institutional stockholders (see below) with the 11 that maintain holdings above the declaration 3% threshold accounting for 72.33% of the shares. When you add Chairman Tom Blacks holding of 4,103,072 shares or 6.38% then these 12 shareholders account for just under 79%.

Major Shareholders: 18 November 2013

Newton Investment Management: 8,660,185: 13.46%
F&C Asset Management: 7,178,655: 11.16%
Aviva Investors Global Services Limited: 5,253,305: 8.16%
Herald Investment Management: 4,389,375: 6.82%
Schroder Investment Managers: 4,382,930: 6.81%
M&G Investment Management: 3,814,600: 5.93%
Artemis Investment Management: 3,401,284: 5.29%
Old Mutual Asset Management: 2,826,315: 4.39%
Hargreave Hale Stockbrokers: 2,346,000: 3.65%
NFU Mutual: 2,224,000: 3.46%
Henderson Investment Management: 2,060,636: 3.20%

They also have an impressive management pedigree too all of which suggests that this is going places. However timing an entry is always critical but having reviewed their current prospects and indicative trading projections DGB has now gone onto my watchlist.

[mctmct] 04/4/2014 14:46

Richard Holway's Techinvest said today:
-------------
"Let me start by declaring that I have been a Digital Barriers (DGB) shareholder since their IPO at 100p in March 10. I've known Exec Chairman Tom Black for a very long time since even before his Detica days and rate him highly. DGB's shares had been riding high in the Holway Portfolio as I have reported on many occasions. Indeed they had more than doubled within a year. But...

... in early 2014, DGB put out a revenue and profits warning (See here) which seemed to put the shares into freefall. Down c50% YTD and, at c85p, now lower than the 100p IPO price.

I've just come off a call with Black. This morning DGB has provided a trading update confirming revenues of c£19m for the FY just ended 'an aspiration to move towards breakeven in the current FY'.

There was good news on several fronts. The previous downgrade was due to both contract conclusion and product delays on TVI. Today DGB announced a £1.8m order with 'a major US federal agency' who have upped their order from an initial 50 handsets to 'multiple thousands'("Can't give you a precise number, Richard, as that would reveal the number of agents they have...") Another £2m+ order has come in from a law enforcement agency in the Middle East. Black told me they have secured 3 c£2m contracts in the last 5 weeks. So it really looks like those delayed contracts are finally closing.

On the TVI product front, four new products have been launched in the last four weeks and Black assures me "the delays are behind us". DGB's problems, frankly, stem from trying to do too much at once. I think Black gets that now.

Indeed because I've known Black for so long, I can ask him "as a friend rather than an analyst, have you now turned the corner?". I got an emphatic 'Yes'. As those many Chairmen and CEO readers that I know well will know, you can really only pull the wool over Holway's eyes once! I doubt Black would risk it.

Anyway, after a long run of falls, DGB shares are up 2% this morning on the news."
----------------
I have bought 10,000. The overall volume today is over £10% of market cap. Make of that what you will.

[geraldus] 18/3/2014 20:56

Still looks expensive even with the pedigree of the directors.Not keen on these surveillance outfits really,just watching out of interest.Glad I chose Porta a year or so ago.

[she-ra] 18/3/2014 16:36

Indigovision has better margins and is profitable, has much bigger revenues and valued at half what Digital Barriers is.

I see what you are saying Pugugly.

[pugugly] 27/2/2014 11:57

Just popped in after top list faller.

Cannot see any reason to invest at current MV. Never made a profit nore estimated to amke one up to 2015 by Investec House Broker so loss must be believable (house brokers only in my experience forecast a loss if it is inevitable !!!!!!!!)

Plus extract from today's announcement

"As a result of delays to certain sales closures the Board now expects that Group revenues for the period will be slightly below last year (FY13: GBP23.3m). The delays are the result of both protracted customer procurement processes and internal delays in releasing new products in response to customer demand. As a result of this revenue shortfall, losses will be adversely impacted and are expected to be approximately 40% higher than last year (FY13: Adjusted Loss before Tax* GBP7.6m). Cash at the year-end is expected to be in line with market expectations at approximately GBP14.0m.



SP at all time (well at least 5 year low) The big name institutions backin gcoy have a lot of egg on their faces - OK great ideas but managment seem to ahve failed to deliver

Anyone think worth while investigating further or a waste of time and much better opportunities elsewhere.

[mach100] 28/12/2013 17:43

Hmmm with Defence spending in the UK being cut back and with much of their focus on the UK, is this company a firework or a dud? Certainly seems very cash hungry. Maybe PINN are better value 18p now having rebuffed a bid of 21p previously.
Edited after having read about PINN on its thread. Poop management and a lot of hard done by investors. Could be a turnaround play after CEO has stepped down but certainly not one for widows and orphans!

[fillipe] 28/11/2013 11:44

Wow - that's a chunky loss on not that much of sales

f

[nw99] 05/11/2013 21:15

F&C increased stake nice

[nw99] 29/10/2013 09:16

Bought more today like the chart

[nw99] 27/10/2013 18:54

Bought here Friday

[azalea] 21/6/2013 12:42

On my watch list if only because of director purchases, which appear to fly in the face of broker Investec's forecast of losses continuing through 2014 and 2015.

[hew] 29/5/2013 11:03

http://www.investegate.co.uk/digital-barriers-plc--dgb-/rns/final-results/201305290700097403F/

Today's results illustrate well that DGB is not set on becoming a niche specialist but a really significant player with the big boys on the global stage. So of course the foundations and infrastructure take time and money to put in place. That is great for the UK and for the future; just the kind of thing we need more of. The highest skills, globally applied. But as an investment today............hmmm.

I have not looked the finances beyond the headlines but given the spend rate and the resources I expect further fund raising unless they have good financial backing in place. Banks: this is an example of an enterprise that you must support if asked, or be made to.