Datong expects profitable growth as orders flow in

SPY gadgets firm Datong said sales and order intake were at record levels and it was confident of further profitable growth.

The Leeds-based group, whose devices help police and security services to track criminals' and terrorists' mobile phones, said its recovery had continued in line with management hopes, leading to a "substantial improvement" in trading on last year.

Datong suffered during the recession from deferred orders, litigation and exporting licence delays. But the resumption of orders in the United States, previously held up by the administration change in 2009, is now driving growth.

Shares rose 6.6 per cent to close up 2.5p at 40.5p.

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Chief executive Dean Blood told shareholders at Datong's annual meeting yesterday it had steadily improved in military, federal and law enforcement sectors in its Americas territory.

The group has also started to expand its direct sales presence in the Americas to build on product opportunities and grow customers.

It has also won significant contracts in its new "rest of the world" territories.

Mr Blood is confident Datong's popularity among security services will help to reduce the impact of squeezed government spending.

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"Whilst economic uncertainty continues to impact government funding for defence and security budgets on an international scale, Datong's positioning and penetration of premium intelligence gathering markets attracts great interest," he said.

"With the combination of continued investment in research and development, new product and associated services launch and a broader customer base the board is confident of a platform for incremental group expansion and continued profitable growth in the year ahead."

He said research and development was fundamental to the success of the group, and it had sustained investment in this area. It recently launched a suite of next-generation proprietary products into its core markets. R&D is focusing on smaller and more sensitive kit.

Datong also plans at least one acquisition in the coming year and predicts a wave of consolidation in the high-technology surveillance sector. Datong added all resolutions were passed at its AGM.

Datong was founded in 1974 by David Arthur Tong – hence the name – an amateur radio enthusiast and Leeds University lecturer.

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