Surveillance technology developer Datong reported an improved underlying profit in the six months to March 2011 even though revenues fell.
Revenues fell from £7.41m to £6.33m but that was due to lower third party sales where margins are lower. Own product sales rose from £4.36m to £5m as North American sales recovered. New product launches will generate revenues in the second half although sales cycles are getting longer outside of America and Europe.
The underlying profit improved from £530,000 to £762,000 and Datong remains on course to return to profit in the full year. Capitalised development spending of £701,000 was similar to the spend in the first half of the previous year.
Datong wants to acquire similar businesses with their own technology platforms.
Net cash was £1.57m at the end of March 2011. Datong hopes to sell its old premises for £375,000 before the end of the financial year.
At 57p a share, Datong is valued at £7.89m.
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