DTE Datong

TIDMDTE

RNS Number : 3840N

Datong PLC

28 September 2012

 
 Press Release   28 September 2012 
 

DATONG PLC

("DATONG" or "the Company")

Trading Update

DATONG PLC (DTE.L), a leading provider of covert intelligence gathering solutions, announces that order intake from its Americas territory during September has been unexpectedly slower relative both to the Board's expectations and to prior years. Traditionally, September has been a strong month benefiting from customer spending at the end of the budget cycle in the USA.

Although end user demand remains strong, budgetary pressures have resulted in the placing of a number of large order opportunities, which the Group had expected to receive and deliver in September, being deferred into the 2013 fiscal year.

In other territories, demand since the interim results statement has been in line with the Board's previously announced expectations; Demand from within Europe has remained weak during the period whereas the UK and ROW territories have performed well. Specifically within the ROW territory, an order for GBP0.8m, previously expected to be delivered during the summer will be delayed until the early part of the 2013 financial year due to delays in obtaining the relevant export licenses.

As previously highlighted, the Group has implemented a number of cost reduction initiatives during the year and the Board is pleased to confirm that these are now delivering tangible cost savings and margin improvements.

Overall, whilst the Group's Balance Sheet remains strong with around GBP2.6m net cash (2011: GBP1.3m), the Board expects the financial results for the year to be materially below last year on sales revenue of around GBP9.3m (2011: GBP11.7m). Although the market in which DATONG operates remains relatively robust, individual markets are continuing to prove volatile, the result of which is that it has become increasingly difficult to forecast year on year financial performance. The Board however remains confident that the Group's strategy of diversification, its focus on investment in technology and new product development will drive the business forward.

- Ends -

Enquiries:

 
 DATONG PLC                           Tel: +44 (0) 113 239 
                                                      5350 
 Mark Cook, Chief Executive Officer 
 Stephen Ayres, Finance Director 
 

Nominated adviser and broker

 
 Canaccord Genuity                Tel: +44 (0) 207 523 
                                                  4630 
 Simon Bridges / Kit Stephenson 
 

Media enquiries

 
 Abchurch Communications           Tel: +44 (0) 207 398 
                                                   7710 
 Sarah Hollins / Quincy Allan 
 quincy.allan@abchurch-group.com 
 

Notes to Editors

DATONG PLC provides a range of advanced high performance covert intelligence gathering solutions, supplying defence, homeland security and law enforcement agencies around the world. Intelligence strength continues to play an increasingly central role within governmental agencies and police forces, supporting the fight against terrorism and organised crime.

DATONG is headquartered in Leeds, United Kingdom and employs 85 staff . The Group has a wholly owned subsidiary in the United States, DATONG Electronics Inc., with a sales and service office in Chantilly, Virginia. DATONG's proprietary products (as well as Third Party products) are sold internationally into more than 37 countries using both the Group's direct sales force and a network of independent overseas distributors.

DATONG (DTE.L) listed on the AIM market in London in October 2005 and is included in the FTSE Electronic Equipment sector. Group revenue for the 12 months to 30 September 2011 was GBP11.75 million (2010: GBP14.06 million).

Further information on DATONG PLC can be found at www.datong.co.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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