Another Record Year For Domino

Domino UK has reported another record year with an eight per cent increase in sales and growth in its operating profit of 19 per cent.

Domino UK has reported another record year with an eight per cent increase in sales and growth in its operating profit of 19 per cent.

The reported eight per cent turnover growth was achieved in sterling and by 13 per cent in local currencies in international markets.

Gross margins improved again and were 50 per cent compared with 48.9 per cent in the previous year.

Operating profit increased to £24.5 million compared with £20.5 million in 2003.

Domino's chairman Peter Byrom said that organic growth was supplemented by first-time contributions from two acquisitions, Wiedenbach in Germany and Purex in the UK.

"The quality and performance of our products and the global service we provide is increasingly recognised by major multi-national manufacturers and original equipment suppliers," commented Byrom.

Underlying earnings per share were 16.78p compared with 13.60p last year, an increase of 23 per cent.

The compound rate of growth in underlying earnings per share over the last eight years was 15 per cent.

Net cash inflow from operating activities was more than £30 million for the third year running, reflecting the continuing attention to back office systems and the control of working capital.

At the end of the year Domino had net funds of £25.3 million reported the company.

Research and development expenditure was at a record level of £9.6 million, equivalent to 5.4 per cent of sales.

Byrom added: "During the year the company made two acquisitions to enhance our competence and the range of our activities.

Wiedenbach in Germany brings sector capabilities to our ink jet business.

Purex in the UK is a world leader in fume extraction and purification systems for laser and other applications.

Just after the year end, on November 1 last, we acquired Pri-Ma-Tech which brings marketing, sales and service strengths to our German businesses.

Earlier this month we completed the acquisition of the remaining 49 per cent of Sator Laser in Germany for 12.1 million Euros.

We also continue to invest in people and training.

Our success is due to the skill and commitment of the 1,800 people we employ in 13 countries around the world and to our distributors in over 100 further countries." He went on to say that the company's prospects, based on the product and marketing developments in the last year, combined with the acquisitions gave Domino a solid platform for the current year and the company expected to increase its market shares in its core product identification and laser businesses.

He added that growth was also expected in its newest business of outer case coding.

The Board has recommended a final dividend of 3.7p per share, making a total of 5.7p for the year, representing an increase of 20 per cent over 2003.

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