€49.6m market cap
€12.4 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.
More good news from DATRON as confirmation of targeted growth in 2018 (revenue up 11% at enhanced like-for-like margin) has been accompanied by similarly positive guidance for the current year. Gains should continue to be investment-led, epitomised by the full-scale roll-out of the company’s ‘next’ tablet-based control system, driving demand in its key CNC milling machine segment, and by initial benefits from its specialist tool technology operation. Strong finances (c €10m net cash at end 2018) support investment (R&D 7% of 2018 sales) and dividend growth.