RNS Number : 8077H
Datong PLC
01 March 2010
Press Release 1 March 2010
DATONG PLC
("DATONG" or "the Group")
Pre-Close Trading Update
DATONG PLC (DTE.L), the designer and manufacturer of advanced high performance intelligence gathering equipment, today announces the following trading update.
Since DATONG's last financial period end, 30 September 2009, the Group's markets have demonstrated an expected level of resilience despite the continuing uncertain economic environment. Strong demand in the UK and European markets, combined with the significant successes being achieved in new geographical regions, has resulted in a higher than expected and record level of order intake for the period to date.
With a small number of these orders, the requirement to follow a formal export control approval process is causing some delays in delivery times compared to those which the Group would normally expect. However, DATONG is not experiencing any other significant problems obtaining the formal approvals, with the exception of the one example referred to below.
As announced in December 2009, the Group won an £0.8 million order from a new market within the "Rest of World" region in July 2009. After having an export license application initially declined, DATONG has subsequently clarified the outstanding concerns and has reapplied for the license. Although the Board expected this matter to be resolved during February 2010, a date has not been finalised and a response now is unlikely to permit delivery before 31 March 2010. The Group continues to liaise regularly with the UK Authorities in a bid to conclude these exceptional circumstances.
In summary, delivery delays are expected to result in revenues being approximately 15% lower than expected for the period to 31 March 2010. This lower level of revenue will lead to a financial loss for the 12 month period; however the Group has seen a substantial improvement in trading on last year, has traded profitably and has a record order book which leaves the Group in a strong position going forward.
The Board remains confident that the combination of new product development and expanding geographical coverage, leveraging off an established installed base, is a sound foundation for continued recovery.
As announced in July 2009, the Board confirms that the financial year end of the Group has been changed to 30 September. A key objective is the improvement in the reliability of its year end forecasting processes.
DATONG is to host a "Company Showcase", intended for institutional investors in which Dean Blood, Chief Executive of DATONG, and his team will provide a business overview, outlook, product demonstration, new product roadmap and Q&A session. The Showcase will take place at the offices of Canaccord Adams', located at Cardinal Place, 80 Victoria Street, London, SW1E 5JL at 1230pm on Wednesday 3 March 2010.
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Enquiries:
DATONG PLC Tel: +44 (0) 113 239 5350
Dean Blood, Chief Executive Officer
Stephen Ayres, Finance Director
Nominated adviser and broker
Canaccord Adams Tel: +44 (0) 207 050 6500
Simon Bridges / Kit Stephenson
Media enquiries
Abchurch Communications Tel: +44 (0) 207 398 7725
Sarah Hollins / Nick Probert / Hannah Sharman
Notes to Editors
DATONG PLC develops, designs and manufactures a range of advanced high performance intelligence gathering equipment, supplying defence, homeland security and law enforcement agencies around the world. Intelligence strength is playing an increasingly central role with its customers, supporting the fight against terrorism and organised crime.
DATONG is headquartered in Leeds, United Kingdom. The Group has a wholly owned subsidiary in the United States with a sales and service office in Chantilly, Virginia. Its products are sold internationally into more than 25 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.
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
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