Digital Barriers warns potential contract delays will impact FY performance

"This is a disappointing out-turn to the year -- a year in which we have achieved some very positive progress across our technologies and in our international markets," said chairman Tom Black in a statement.

He noted that Digital Barriers was securing larger, more complex sales opportunities, but that these carried much longer sales cycles and made it difficult for the company to determine the timing of their closure. It had been addressing this.

Digital Barriers said the contracts in question included what would be its largest ever sales in to the USA, Asia and the Middle East in addition to its most material potential OEM contracts. All had been expected to be secured by 31 March.

"Whilst the Group currently expects to secure all of these awards, it has now become clear that some or all of them may now be secured in the next financial year," said Black.

If none of the awards were signed before the end of March, there was expected to be a shortfall of about £10m on revenue for the year ending 31 March 2017, compared with current market forecasts.

"In aggregate, and at an absolute level, these contracts represent revenue of approximately £14.5m, with recognition of that revenue, once signed, spread over the coming and future financial years," said Black.

"In light of this disappointment, I will lead a review of our sales and engagement model to ensure that meaningful and sustainable improvements can be made to this critical aspect of how we do business," he said.

At 10:26 GMT, shares in AIM-traded Digital were down 17.74% to 25.5p each.