News blog
Datong
- BY: Andrew Hore |
- POSTED: 13/06/2008 |
Surveillance technology developer Datong reported higher revenues and profits in 2007-08.
Revenues grew 13% to £10.7m in the year to March 2008, while profits increased 8% to £2m. A much larger proportion of the sales were of third party products, which don’t have as high a margin as Datong’s own products. Sales to the US were delayed and the growth came from Europe and the rest of the world.
The dividend was doubled to 2p a share, but this is still well covered by earnings. Net cash edged up to £2.8m.
A move to new premises will give Datong room to grow. The US sales, which were delayed because the US budget hadn’t been agreed, should flow through this year. However, the first half figures probably won’t look that good because there has been an increase in the cost base due to the premises move. The main improvement in profits should come in the second half.
House broker Landsbanki forecasts profits of £2.3m, which would put the shares on just over eight times prospective earnings.
Datong is still looking for surveillance technology business acquisitions but inflated price expectations are a problem.
At 94.5p a share, Datong is valued at £13.1m.
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