Digital Barrier Share Discussion Threads

[cyman] 19/3/2015 22:59

12000 shares traded and we fallAnd the logic behind this is?????

[onjohn] 08/3/2015 14:22

Looks like news is on the horizon. Maybe about to announce the two previous delayed contracts?
Or something bigger MAMMOTH even


This stronger sales leadership has already enabled the Group to close material opportunities from its sales pipeline. The most significant of these closures have been in the Group's UK/Europe region, where new sales leadership was appointed in October 2014. Changes to the management arrangements in the Group's Americas and Middle East/Africa regions were made in January 2015, and are expected to yield similarly positive results in due course.

The Group remains focused on securing new flagship government and commercial organisations as customers for its class-leading technical solutions. With increasing numbers of these organisations having adopted the Group's technologies, each of the Group's regions is also focused on key account management to secure follow-on sales. An increased volume of existing technologies sold into existing customers should lead to enhanced forward visibility and improved sales forecasting.

Taken together, these changes and their early positive impacts, combined with further planned restructuring of the Group's operational cost base, give the Board confidence in the trading ambition outlined above.

[cestnous] 07/3/2015 15:53

Looking more closely now. Not in yet.

[cyman] 07/3/2015 00:12

Nice smooth and tidy recovery all week. Quite impressed

[hedgehog 100] 26/2/2015 21:35

Price Price Change [%] Bid Offer Open High Low Volume
41.00 -9.0 [-18.00] 40.00 42.00 44.00 44.00 39.00 370,547
Market Cap. [m] Shares In Issue [m] Beta EPS DPS PE Ratio Yield 52-Wks-Range
34.64 84.49 0.32 -25.87 - - - 128.50 - 33.50


Slightly disappointing short-term news for DGB, but in the longer-term 41p will probably be seen as a buy opportunity.

Business looks strong, and the contracts slippage looks slight.


26/02/2015 07:03 UKREG Digital Barriers plc Trading Update
Trading
The Group continues to secure contract awards with key customer organisations in both domestic and international markets, further examples of which have been announced separately today. However, the timing of two expected significant contract awards in relation to the Group's financial year-end means that revenues for the period will fall below the Board's initial expectations, although they are expected to be stronger than the prior year (FY14: GBP19.0m). As a result, losses for the period will also exceed Board expectations, although they are expected to show a year-on-year improvement (FY14: Adjusted Loss before Tax* GBP12.0m). Cash at the year-end is expected to be approximately GBP8.0m, compared to GBP14.2m on 31 March 2014.
The two contracts in question are now expected to close and be delivered early in the first half of the coming financial year and the Group's broader sales pipeline remains strong. On account of this, and coupled with the operational improvements outlined below, the Board expects that the revenue risk associated with deal closure timings will now begin to reduce. Consequently, the Board still aims for the Group's performance by the end of the financial year ending 31 March 2016 to be break-even. ...



This bodes well for the business of related company GOS Systems, owned by TGL.
Especially as DGB looks to be more cyber-focussed than GOS Systems, without GOS's cellular capabilities.
This probably means that GOS Systems has higher barriers to entry and margins than DGB.


From page 9 of GOS's November 2014 investor presentation (see post by someuwin 18 Dec'14 - 11:05 - 2882 of 4412 2 0 ):
"• Cellular is the 'hard to do' piece
• Significant technology barriers to entry and hence few market players"



Coincidentally, the TGL share price of 0.415p is now almost exactly 1% of DGB's (41p).

[bozzy_s] 26/2/2015 16:18

Apologies, think I was confusing numbers from 2 different companies. You're of course right at £11.4m, £12.9m, £16.3m, so heading for somewhere above £32.6m for current FY.

[hew] 26/2/2015 16:11

I don't see your numbers bozzy. Only time for quick look but Admin for last four halves: 16.3, 12.8, 11.5, 10.5m.

Agree unwelcome +27% leap up in last half. If stable at that now, doubling gives 32.6 for FY. Particular reason to assume another leap?

[bozzy_s] 26/2/2015 14:34

Quick look at interim results. Admin expenses increased from £11m to £14m to £18m per 6 months in previous 3 half-years. So it's heading for £36m or more for current FY. Seems astonishingly high for a company of this size. Numbers more akin to a FTSE 250 oiler or retailer.

[nw99] 26/2/2015 09:28

Delays but looks a good long term bet

[hew] 26/2/2015 08:25

The classic "things take longer than expected" scenario. But I don't see a strategic issue here. The fundamentals and the direction of travel remain the same. The demand from an ever more threatened world has not disappeared. Six to 12 months delay in gains in the share price - matters to short termers.

[aishah] 26/2/2015 08:06

Yes, poor with breakeven not till March 2016. Big execution risk remains. dyor

[cyman] 26/2/2015 08:03

Nothing like a profits warning to earn a share a downgrade. Usually signifies a mundane year ahead at best! What a shame. Thought it was a cracking company

[tech] 26/2/2015 07:40

Poor trading update, break even at best

[nw99] 26/2/2015 07:25

Cracking news

[hedgehog 100] 25/2/2015 16:21

It's worth keeping an eye on how GOS Systems (owned by Touchstone - TGL) is doing, as GOS has been described as the ears to DGB's eyes:

"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. ... "


04/11/2014 08:02 UKREG Touchstone Gold Limited Acquisition
"Acquisition of GOS Systems ... "



GOS Systems is due to give a trading update in March, and all the indications are that the company is doing very well indeed.

[engelo] 09/2/2015 19:57

Don't hold here but like cestnous having a look.

Very positive write up in SCSW this week based on interview with finance director Sharon Cooper. Some excerpts (apols to those who know it all)

'Since the IPO DGB has completed 14 acquisitions total cost £25m, basically buying intellectual property'

'Now has world class IP in 3 key areas: advanced surveillance cameras, unattended ground censors and positive body scanning.'

Investec:

- sales up 23% to 29.6m in year starting 1 April, and a further 18% to £34.7m following year. Pretax loss of £1m turns into profit of £1.3m (eps 2.3p) over the 2 years.

SCSW: we think this may be patently too low as the broker states 'pipeline is buoyant and remains about deal conversion timing'.

Net cash at end Sept £7m after which DGB has raised another £7m.

[hew] 09/2/2015 08:45

Glad of the company, ladies/gentlemen!

[cyman] 08/2/2015 23:43

Me too.....He he he

[cestnous] 08/2/2015 13:06

You may not be alone here for long hew. Started surveillance on this today.

[hew] 20/1/2015 16:31

Greetings nw99. Thanks for the mention - I did not know that. After following for a long time - and things have not gone as easily for them as hoped initially - I just felt that they had hit a likely low for a turnaround given the more encouraging words in and subsequent to the Half Year Report. The confidence shown by the placing afterwards was good too.

So the pullback in the last week may well be those who bought re Sharewatch and are happy with their 15%-20%. I'm normally more of a long termer myself and will be disappointed not see 80p before selling. Given the solid demand underlying their rather special field, the global requirement and their excellent credentials where trust is key, I don't rule out a long term growth story either. But one step at a time - profitability a good start.

No advice, DYOR

[nw99] 20/1/2015 13:50

Bought here as its a Sharwatch tip for 2015

[hew] 24/12/2014 10:25

Best wishes to me for Christmas and 2015. (As I seem alone here - but delighted to extend to all my readers!)

Glad a little life returning to the SP; seem to have picked the right moment a couple of weeks ago. Keep it up hew!

[hew] 16/12/2014 08:55

Glad to see the sensible placing - at a sensible price. Confidence internal and external. Steady as she goes.

DYOR