Datong boss reports solid performance

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SPY gadgets firm Datong reported a “solid performance” during the first part of the year, which it said was in line with management expectations.

Datong’s chief executive Mark Cook told shareholders at the group’s annual general meeting that it expects results to be weighted to the second half, reflecting the current uncertainties within the US market.

Last week the Leeds-based company put itself up for sale after receiving a bid approach, saying it was in the best interests of shareholders to seek potential buyers by means of a formal sale process.

Yesterday it confirmed it is conducting a formal sale process through its adviser Cavendish Corporate Finance.

The company, which makes covert tracking gear for security services, said the board will reserve the right to reject any approach or terminate discussions with any interested party at any time.

It added that the formal sale process is at an early stage and there can be no certainty any transaction will be concluded.

Datong has been buffeted by a number of factors including spending logjams among governments, litigation and fluctuating earnings.

In December the group launched a strategic review with the aim of boosting its presence in the US, developing new products and identifying potential acquisitions.

The company has been hit by the economic downturn in Europe and the impact of the US Presidential election.