‘Person issue’ as Datong chief executive steps down

The Leeds-based company refused to explain Dean Blood’s immediate departure, but insisted it was a “person issue” and not an indicator of deeper business problems. Its shares fell 2p to 45p, giving the AIM-listed company a market valuation of just £6.2m.

Datong is deeply exposed to military and law enforcement budgets through its high-tech electronic devices used to track criminals and terrorists.

Mr Blood leaves Datong after almost three years, which included two spent as chief executive.

The company said he served “during a period of considerable change and difficult trading conditions”.

Brian Smith, Datong’s former CEO and a current non-executive director, will stand in as an interim replacement.

Finance director Stephen Ayres said the company has started looking for a new CEO, but is at an early stage. “We have obviously been talking with Dean and as a board we have agreed that Dean would stand down,” he said.

“Dean has agreed with that decision and has left the business.”

Mr Ayres declined to say if Mr Blood will receive a payoff, although contractually he is entitled to 12 months’ notice from the company. His salary for the 18 months to the end of September 2010 was £256,000 – roughly £170,000 for 12 months.

The company recently reported a slowdown in the Middle East, South-East Asia and the Indian sub-continent, but said it has seen a recovery in the United States.

Mr Ayres said: “There is no change to the business. This is just a person issue.

“We are confident in saying there’s no change in our business strategy, what we are doing or how we’re doing it.

“We’ve made good progress, particularly in our own products and in our traditional markets.”

Chairman Paul Lever added: “Datong wishes Dean well in his future career pursuits and, on behalf of the board, I thank him for his commitment and energy during his time with the group.

“We remain confident that the group’s strategy, which Dean helped put in place, of diversification of its customer groups and broadening and integration of its technology base and service provision will continue to drive the business forward and underpin future growth.”

Mr Blood was previously at Rolls-Royce where he led lean global supply chain strategies in the marine and civil sectors.