Demand for video systems boosts Digital

The group said its Leeds-based COE operation, which provides video surveillance for railways, ports, airports and city centres, put in a strong performance.

Digital Barriers’ development director Zak Doffman said: “COE is in a really strong position in transportation. It’s very strong in Asia and it’s growing very rapidly. The technology has been put into a host of new customers.”

COE specialises in the management of video data.

There are huge numbers of cameras in transportation networks and COE manages the transmission.

“Thousands of cameras will stress any environment. COE can manage the load,” said Mr Doffman.

He used the example of a video camera on a level crossing.

“If a camera has frozen, something could be happening. COE’s technology says whether it’s a live feed or a stalled camera shot.”

The device also has automated alarms that go if the equipment isn’t operating properly.

He added that COE is growing sales and the business is more profitable than when Digital Barriers bought it in 2010.

The company said that there are over 4,500 recorded incidents of misuse or error involving rail level crossings each year in the UK alone.

According to Network Rail safety statistics, this includes more than 400 near misses, including vehicles, pedestrians and other road users – and a number of fatal- ities.

COE’s surveillance equipment has been operating in the rail sector for 20 years providing video transmission solutions that are certified for level crossing monitoring in the UK, with equipment used in over 200 crossings.

COE’s networking technologies are also used by defence and law enforcement organisations for protection and border monitoring.

Following its flotation in 2010, Digital Barriers is investing in its operations ahead of making a profit in the year ending March 2015.

Yesterday the group announced revenues of £23.3m and an adjusted loss before tax of £7.6m in the year to March 31.

Analyst Julian Yates at Investec said: “2013 results highlight good momentum in the business, evidenced by the number of deal closures during the year and an optimistic outlook for 2014.

“Digital Barriers has gained flagship wins across all its core strategic technology offerings, shipped products to 20 countries in 2013 and is also making initial inroads into the commercial surveillance markets.

“In our view, this is validation that the business model is finding material traction, setting the group up to deliver significant growth ahead, and we retain our ‘buy’.”

Mr Yates added that the group has seen impressive wins and secured qualified opportunities in 2013 across its territories and high profile strategic accounts.

Digital Barriers provides advanced surveillance technologies to the international homeland security and defence markets.

International revenues doubled from £3.3m in 2012 to £6.7m, representing 29 per cent of group revenues as sales were made into more than twenty countries.

Executive chairman Dr Tom Black said: “The combination of strong sales momentum and the quality of relationships we have built with key partners and customers around the world, combined with our increasing portfolio of world-class products and the strength of our engineering team, gives me confidence in our ability to grow revenue significantly and drive towards profitabil- ity.

“Our now proven business model and strategy gives the board confidence in the growth prospects of the group.”

Digital Barriers said its TVI wireless video surveillance technology secured flagship customer sales around the world.

This included the selection of TVI by a major US federal agency as its next generation video surveillance technology, leading to a development contract for the group that will see a high-definition version of the technology reach the market in the second half of 2013.

Keeping an eye on the world

Digital Barriers provides advanced surveillance technologies to governments, multi-national corporations and system integrators in the international defence, law enforcement, critical infrastructure, transportation and natural resources sectors.

It specialises in delivering intelligent surveillance information from remote, hostile and complex operating environments and in applying intelligence as close as possible to the scene under surveillance.

It has bought 11 technology businesses, which have been integrated.

It has a presence in Asia Pacific, North America and the Middle East.