Datron

DB: DAR

€49.2m market cap

€12.3 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 built on a strong start to the year to deliver positive H118 results. While not strictly comparable owing to first group accounts, EBIT all but doubled thanks to sustained buoyancy in its largest business, CNC milling machines (revenue up 14%), and strict cost control (trading margin 9.0% vs 5.6% y-o-y). Despite a tightening of US trade policy, such momentum and management expectations of an export-led rise in order intake in the second half reinforce confidence in newly confirmed guidance for 2018 (revenue up 9% at c €55m and EBIT up 30% at c €5m). Finances remain disciplined (c €7m net cash at June 2018).

Sector
Industrials
Share price graph
Price performance
%
1m
3m
12m
Actual 0.8 9.8 (6.8)
Relative* (0.9) 0.4 (1.2)
52-week high/low €13.9/€10.8
*% relative to local index
Key management
Michael Daniel CFO
Charlotte Breitwieser Marketing and Communication