Datong spies opportunities despite economic turmoil

DATONG, the company that provides intelligence gathering technology to combat terrorist and criminal activity, today said it had been hit by the turbulent global economic conditions.

Leeds-based DATONG posted revenues down by more than £2m for the year ended September 30 at £11.75m. Operating profit before exceptional items was £50,000 compared to £800,000 last time.

Chairman Paul Lever said despite the hit on its figures, the company remained in a strong position because of the need to combat terrorist and criminal activity by global policy makers.

Mr Lever said DATONG had made good progress in diversifying its customer base and technology portfolio.

However, budgetary constraints from customers has hit its bottom line, he said.

DATONG believes it will experience growth during 2012, however, it expects slower progress in the first half as a number of larger sales opportunities in progress are not expected to be deliverable until the second half. 

The company is also looking to restructure its cost base by £500,000 a year.

Chief executive Brian Smith said: “Good progress continues to be made in DATONG’s own products business with strong customer interest in new products and significant sales being made. However, third party product sales volatility has had a short term adverse impact. 

“The current world economic climate and its affect on our customers’ budgetary policies is impacting DATONG with the timing of orders not following usual trends. 
 
“Nevertheless, DATONG is well positioned in the intelligence gathering sector with a good sales pipeline and consequently the Board remains confident that the group’s strategy will continue to drive the business forward.”