Datong does well in US but rest-of-world markets slow down

The Leeds-based company, which designs and sells advanced electronic devices to track criminals and terrorists, said operating profits rose from £520,000 to £760,000 in the six months to March 31.

The slowdown in the Middle East, South-East Asia and the Indian sub-continent was blamed on buying patterns rather than any underlying problems.

Finance director Stephen Ayres said: “Yes, markets in the rest of the world are a bit disappointing, but we’re not worried. In the long term we’re in a very good position in the region. In the second half we should see some of the business we expected in the first half.”

The US continues to see strong growth. Chief executive Dean Blood said demand for the group’s own products has been strong in the UK and US, reflected by a 49 per cent increase in own-product revenues.

Demand for third-party products has been slow across all markets reflecting saturation in some markets and protracted sales cycles in the rest of the world.

Pre-tax profits rose from £210,00 to £760,000 over the six month period.

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

Datong said feedback has been very positive and it has received its first orders.

These products are designed for hours of continuous use in hostile environments and allow users to track suspects remotely using satellite location.

Datong is targeting areas such as Mexico, India and Eastern Europe, where the battle against drug cartels, terrorism and organised crime is fuelling demand for covert surveillance technology.