DATONG spies growth as strategy pays off
DATONG, the Yorkshire intelligence and security tracking group, believes a series of new product launches, the freeing up of military spend in the US and potential bolt-on acquisitions will continue to drive its expansion plans.
The Leeds-based group today posted improved interim results for the six months ended March 31, with revenue up by 48% to £7.41m and operating profit before exceptionals increasing to £520,000 from £150,000 over the same period last year.
Pre-tax profit at the group, which supplies advanced location based intelligence gathering equipment to military, security and law enforcement agencies to deal with threats including terrorism, border control, and criminal activity, was up to £206,000 from a £128,000 loss.
Speaking to TheBusinessDesk.com, chief executive Dean Blood said DATONG’s strategy of diversification into new markets and new regions – including Asia Pacific and the Middle East, coupled with increased orders and a continuing focus on research and development, was reaping its rewards.
Mr Blood, who said order intake over the period had increased by 63% to £7.75m, said: “We’ve had a hard period prior to this and some of the hard work we’ve put in is starting to pay off.”
Mr Blood said it was vital for the company to “stay ahead of the competition” and developing “next generation” products was key to that.
He said: “I am delighted to announce that the group has returned to operating profit following a strong performance over the half year.
“DATONG enters the next period with a healthy order book and robust order pipeline, providing a solid platform on which to achieve further growth.
“The group will continue to deliver on its strategy of investment in leading edge product and service solutions, whilst developing and extending routes to market.”
Its new products are shrouded in secrecy given DATONG’s sensitive work but will include fixed site and portable receiver and location devices, complete with integrated mapping systems.
They have been developed in part through feedback from clients.
Finance director Stephen Ayres said DATONG was “cautiously optimistic” that $600m of military spend released by the Obama administration in the US last year would be positive for the company and that a number of orders from the US which previously would be delayed had already come in.
Orders in April and May were £3.66m and its other geographical markets have performed well.
Mr Blood said he was also hopeful that the previous “seasonality” of the business would disappear and that the increased number of orders seen over normally quiet periods was evidence of that.
He said DATONG had not ruled out making acquisitions or entering strategic partnerships: “I think as we now move into this period we’re looking at how do we expand the group.”
