Datong reports large rise in revenues

In the pro forma 12 month period to September 30 2010, the Leeds-based company's revenue increased by 80 per cent to 14.06m.

The operating profit before exceptional items was 800,000, compared to a loss of 1.16m in 2009.

The group's intelligence gathering systems are being deployed across a number of markets, with intelligence being seen as a key component in strategies to deal with terrorism, border control and criminal activity.

In a statement, the company said: "Implementation of these activities by our customers provides substantial opportunities for Datong on an international scale."

Dean Blood, the chief executive, said: "I am delighted to report that the timely conversion of key market, new product and strategic developments in the period has resulted in a return to a full year operating profit.

"The delivery of our diversification strategy, coupled with the encouraging signs of a recovery in our core US market, has resulted in an equally strong final half year performance. This has produced a significant reduction in the seasonality of the business noticeable in previous years, a trend the board expects to continue.

"Intelligence led customer operations are a key attribute to countering terrorism, targeting organised crime and preserving national security. Datong is well positioned to support the concentration of forces across our markets on an international scale, especially in demanding operating environments. Our expanded portfolio of products, which was launched in the period, has been well received and is positioned to deliver on its business plan.

"The group's strategy of diversification and its focus on investment in technology continues to drive the business forward. We continue to consider further additions to our emerging solutions and service capabilities; accordingly, the board looks forward to 2011 and beyond with growing confidence."