Companies: BA.    DTE   

Blue-chip UK defence firm BAE Systems has been notified by the US Department of Justice that it is the subject of an anti-corruption probe, worrying news that sent shares south.

The probe, according to BAE, will look at its compliance with anti-corruption laws including its business ‘concerning the Kingdom of Saudi Arabia’. BAE is facing damaging allegations that it ran a fund to help it win aeroplane and military equipment orders from Saudi Arabia, although it must be stated that the company has always insisted it acted lawfully at all times.

Amid small-cap players, Datong Electronics, a £14.78 million counter taking its name from founder David A Tong, could prove a future star. Guided by chief executive Brian Smith, this relative AIM newcomer is a maker of advanced surveillance products and sees huge growth prospects in the military and law enforcement sectors, with the “war on terror” a growth driver.

Results for the year to March proved encouraging despite the headwind of the depleted US dollar. Sales surged more than 30 per cent higher to £9.6 million, earnings advanced 25 per cent to 8.9p and a maiden full-year dividend was declared due to balance sheet strength.