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."
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
