11th Aug 2014 10:11
LONDON (Alliance News) - Surveillance technologies provider Digital Barriers PLC Monday said its expected revenues from West Africa this year are set to take a hit due to the outbreak of the Ebola infection in the region, as contracts the group had been negotiating in the area are now unlikely to be completed this financial year.
Due to the outbreak of the disease, the company has avoided travel by sales and technical pre-sales staff to the region in the past month and, given the recent intensification of the situation in the region, does not expect staff travel to West Africa to recommence in the near-term.
As a result, the group now expects revenue to take a hit as it was in the process of negotiating surveillance solutions contracts with an expected value of more than GBP6 million.
Digital Barriers said it now does not expect these contracts to be finalised and delivered in the financial year, though it said it remains confident of fulfilling the contracts eventually.
The firm said it expects the loss of revenue to be offset, at least in part, by its performance in other regions, including the US and Asia-Pacific. It said it recently secured contracts for the ThruVision standoff people screening solution for a major US police department and for the security at an Asia-Pacific leadership summit, both of which are valued at more than GBP250,000.
"We have invested significant time and effort in developing a strategic sales pipeline in the fast growing economies of West Africa and our hope and expectation is that although we will see inevitable delays, we can work with our local partners to ensure these delays are kept to a minimum. In the interim we are already seeing very significant sales traction with customers across other target regions and expect positive contract news throughout the year," said Digital Barriers Executive Chairman Tom Black.
Digital Barriers shares were untraded Monday morning, quoted at 95.5 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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