Shares in Datong, the covert intelligence company, fell 16% today after it warned it was being hit by government spending cuts.
Revenue in the year to the end of September came in at £11.8m, down from £14m in 2010.
Takings in the UK and Europe were particularly hard hit, down 30% and 39% respectively. However, it saw revenues rise 36% in the Americas.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm said business was proving volatile with a high degree of dependency on budgetary policy within its markets.
Operating profit before exceptional items was £0.05 million, down from £0.8m the previous year.
Earnings per share were 1.03p, compared to 6.38p in 2010, and the firm said it would not pay a dividend.
"The current world economic climate and its affect on our customers' budgetary policies is impacting Datong with the timing of orders not following usual trends," said chief executive Brian Smith
"Nevertheless, Datong is well positioned in the intelligence gathering sector with a good sales pipeline and consequently the Board remains confident that the Group's strategy will continue to drive the business forward."
-
Which investment trusts could benefit from lower interest rates?As vehicles for long-term investments, many investment trusts were hit when interest rates rose in 2022. With interest rates expected to fall by the end of the year, could now be the time to invest in one of these unloved sectors?
-
How to protect your personal and financial data from cyber attacksM&S and the Co-op are the latest retailers to suffer from cyber hacks but consumers also need to be vigilant
