Thruvision misses out on expected CBP order

Security technology firm Thruvision revealed on Monday that an anticipated order from US Customs and Border Protection had not been awarded in September due to Federal Government and Departmental budget challenges.

Thruvision warned that the lack of a CBP order would have "a material impact" on its performance in the second half and for the current financial year as a whole, and that without a CBP equipment order this year, it was now unlikely that full-year revenue will meet current market expectations.

Trading in the six months ended 30 September showed "good momentum", with revenue growing by an estimated 27% to approximately £3.5m and an order backlog at 30 September of £1.0m expected to be delivered early in the third quarter.

Cash at 30 September was £2.3m and trade receivables were £2.7m, up £600,000 year-on-year. Customs market revenue grew by 16% underpinned by a major contract win with a new Asian customer.

Chief executive Colin Evans said it was "frustrating" that Thruvision had not received its anticipated CBP order due to "Federal budgetary challenges". However, despite "this single disappointment", Evans said Thruvison had seen "increasing traction internationally" as it secured six new customers in the first half across all of its markets.

"We are confident that interest levels in our unique solutions, particularly WalkTHRU, which has the ability to screen 100% of people for all types of concealed items at walking pace, remain strong," Evans said. "We expect, therefore, that the second half will demonstrate good revenue growth over the first and will be based on a more diversified range of customers."

As of 1245 BST, Thruvision shares had fallen 15.69% to 24.45p.

Reporting by Iain Gilbert at Sharecast.com