Coding And Inkjet Firm's Rising Sales And Profits

Domino Printing Sciences increased profits and sales in its 2004-2005 financial year.

Domino Printing Sciences increased profits and sales in its 2004-2005 financial year.

Sales growth was eight per cent in both sterling and local currencies and showed further increases in equipment volumes - they were up to GBP192.0m from GBP178.3m.

There was also a recovery in North American and European commercial printing markets, yielding 20 per cent revenue growth.

Operating profits were up by seven per cent to GBP27.2m from GBP25.4m.

Profit before tax increased to GBP26.0m from GBP24.7m.

The company said that profit contributions from 2004 acquisitions were ahead of plan, whilst the acquisition of Pri-Ma-Tech in Germany strengthened local sales and service operation.

Similarly, the acquisition of Citronix also strengthened Domino's leadership position in continuous ink jet printing.

Domino's chairman, Peter Byrom, commented: "The 12 months to October 2005 produced a further period of strong sales and profit growth, despite more difficult global market conditions than in the corresponding period last year.

Results from the acquisitions made in 2004 have exceeded our expectations.

Equipment sales volumes grew in each of our four operating divisions compared to the corresponding period the previous year.

Sales of consumables and after market products grew strongly as a result of the exceptional volume growth in equipment in 2004." He continued: "Our global procurement and engineering programmes continue to deliver substantial quality and cost benefits, enabling equipment margins to be maintained at similar levels to last year, despite continuing price pressure in some market sectors and countries.

Operating returns were maintained at 14.2 per cent." Byrom added that Domino had continued to invest significantly in research and development, and it has further new products planned for release this year.

He explained: "We are setting aside an additional GBP2.5 million from 2006 profits to invest in building a greater competence in providing RFID products to our customers and in other new product programmes.

We expect to enhance our product range further in 2006 with a number of new launches.

We are well placed in the markets we serve and we look forward with confidence".

The company's net cash inflow from operating activities was GBP29.4m, compared to GBP32.9m for the year before.

Earnings per share were raised to 17.04p from 15.96p, whilst underlying earnings per share stood at 18.53p, compared to 16.78p the year before.

Dividends per share were 6.84p, compared with 2003-2004s 5.70p - an increase of 20 per cent.

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