Datron

DB: DAR

€40.4m market cap

€10.1 last close

Datron makes CNC high-speed milling (HSM) machines and associated tools. 54% of revenue comes from generalist machines used by widely diversified clients. Less volatile revenue sources – “after sales” (14%) and replacement tools (20%) – are growing in importance.

Investment summary

DATRON has accompanied news of 23% lower EBIT in H119 with a full-year profit warning. While the former was not unexpected, given a bumper comparative, previous guidance that profit would be H2-oriented may no longer be the case owing to worsening conditions (estimated industry order intake down 17% for 2019) and order delays in DATRON’s key domestic and US markets. Management now expects 2019 revenue of c €55m vs its May 2019 guidance of €60m and EBIT between €4m and €5m (originally €6m). It remains confident that, as in H119, investment-led growth, supported by strong finances, will continue to drive clear market outperformance, especially by its premier CNC milling machines.

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual (1.0) (15.8) (8.2)
Relative* (6.1) (25.4) (19.8)
52-week high/low €12.7/€9.9
*% relative to local index
Key management
Michael Daniel CFO
Charlotte Breitwieser Marketing and Communication