Dollar dents Datong
DATONG, which makes security equipment used to track drug dealers and terrorist suspects, has increased revenues in its key US market despite the continued weakness of the dollar.
The Leeds-based group today said profits for the six months to September 30 were £24,000 compared to £261,000 for the same period in 2006. Chairman Paul Lever said that these would have been £127,000 at last year's exchange rates and also pointed to the seasonality of Datong's business where it receives the majority of its orders in the second half of the year.
Revenue was up 5% to £3.52m.
Chief executive Brian Smith pointed to the group's successful expansion of its customer base in Europe and continued investment in research and development.
He said it had a strong balance sheet with net funds of £2.1m.
Mr Smith said: “We are very pleased with our progress during the period. The success of our continued investment in product development and establishing routes to market is evident in some important contract wins achieved in the period and in a strong pipeline of current opportunities. Despite continuing pressure from the weakening US dollar we have kept our organic growth on track and look forward to the second half year with confidence.”
Mr Lever added: “It gives me great pleasure to report that at the half year stage we are in line for delivering our fifth consecutive year of double digit organic sales growth despite the headwind of a weakening US dollar.
“Datong enjoys a leading position in a market sector that is being stimulated by the ever rising need to combat the risk of terrorism and the spread of organised
crime. Awareness of and attitudes towards the benefits of technology are improving and, as a result, Datong continues to benefit through the development
of advanced technologies that meet our customers' evolving requirements.”
The group has launched two new products this year including a hand-held tracking device that improves the ability of law enforcement officials to track suspects.
