Americas are the target as spy gadgets firm seeks to expand

The Leeds-based group, which supplies law enforcement and military agencies with devices to track criminals' and terrorists' mobile phones and movements, plans to double the size of its team in the Americas to 14 over the next six months.

Datong suffered from falling sales to the US in 2009 as the recession also coincided with a change in administration. That meant budgets were capped and orders postponed as capital spending was frozen.

But delays caused by Barack Obama's victory and the change of administration appear to be clearing, and earlier this year Datong won a $1.2m contract with the US defence sector.

Since then it has made "steady progress" with military, federal and law enforcement sectors in the Americas territory.

Sales to the United States have traditionally been the company's biggest by country, making up about 60 per cent of group revenues. Datong said its expansion in the Americas aims to return sales to near this level.

Chief executive Dean Blood said: "We're aiming for 50 per cent but we're not there yet. The US investment is to try to take us to that level."

In 2008, the group appointed a former FBI chief as the president of its US subsidiary to help drive growth.

Louis Quijas, a former police officer for 25 years and chief of police for six years, was assistant director at the Federal Bureau of Investigation, heading the Office of Law Enforcement Coordination in Washington, DC.

"It's quite clear that in the federal market we have made significant advances," said Mr Blood. "It's been hard work and it's not easily won."

Datong sells only to "friendly" nations, and is targeting Central and South American governments and agencies with its technology, as well as its traditional US heartland, where threats range from terrorism to organised crime.

In Central America, Datong is seeing greater demand from agencies keen to stop the flow of drugs and arms over borders.

"The border issues the US has with Mexico and some of the Caribbean and Central American countries is well documented," said Mr Blood.

"There's a lot of interest in Central America."

Datong recently had a visit from unnamed potential customers who travelled for 27 hours to visit Leeds, he said.

Following 2008's Mumbai massacres, in which Islamic terrorists targeted India's largest city with co-ordinated shooting and bombing attacks, Mr Blood said there has also been increased demand for interceptive technology which can help prevent attacks.

"It's quite clear we are helping some of the federal and homeland security departments in the UK, US and Europe to step up the defence against that (type of attack)," said Mr Blood.

"Mumbai should have and could have been thwarted with some of our equipment. The important thing is ensuring against that happening in future.

"People react to accidents rather than trying to take out insurance.

"Effectively, we're selling data and intelligence gathering. It's basically insurance to stop atrocities happening."

The group is also targeting more funded development from both UK and US government agencies, keen for bespoke products. So far, its funded development work generates revenues of more than $1.5m a year.

Datong also recently launched its next generation of products, which have more power, plus 3G capability to allow real-time tracking over the internet.

Its devices must perform in "pretty tough and arduous environments" and can now last for six to seven weeks in "deep deployment".

The company also reiterated its intention to lead consolidation of the surveillance security market.

"We've got the company on a much better footing and we think we're in a very exciting space in a growth market," said Mr Blood.

Sponsoring pole position

Datong is sponsoring a team of British soldiers on an endurance race to the South Pole to raise money

for soldiers' charities.

The group is helping fund Team Mercury's 450-nautical-mile race across some of the harshest territory on the planet.

Team Mercury, comprising Sergeant Major Mark Morgan, Captain Billy Morris and Troop Commander Sean McIlroy, will compete in the Amundsen Scott 100th Anniversary South Pole Race in December 2011.