Domino results reveal revenue rise
Strong growth in the US and Asian market has offset poorer performing parts of Europe for Domino Printing Sciences.
In the company’s 2013 interim results statement, released today (25 June), it was also revealed the business was increasing its research and development (R&D) budget by 25%.
Revenue for the firm, which makes printers to stamp barcodes and expiry dates on cans, was up 7% to £161.9 million from 2012’s £151 million.
However, profit before tax fell 3% from £25.7 million to £25 million and net cash inflow before tax was down 12% to £21.2 million from £24.1 million.
Sales in the six months to 30 April 2013 were 7% ahead of the comparable period last year, while new equipment revenues were also 7% up with strong growth in Asia, USA and Germany compensating for ongoing difficult trading conditions across most of Europe, according to the business.
Domino chairman Peter Byrom (pictured) said, “We have invested in those areas of the business where we see growth opportunities.
“The acquisition of Graph-Tech in June last year added technical and integration skills for the development of our digital printing business and we have subsequently added sales and technical resources enhancing our digital print and colour management competencies.
“We have invested in additional sales and service resources in the USA and in Asia, markets where demand for our products has been strong. “
Byrom also indicated he was not happy with some part of the business saying TEN Media has “not yet raised the new finance necessary” to meet its anticipated capital needs.
As a result the company has written down the carrying value of the investment held in TEN Media to just 10% of the original cost.
Byrom added, “There continues to be uncertainty in Europe and we remain cautious about markets in this region.
“Elsewhere there are signs of economic growth and our performance in America and Asia coupled with strong sales of digital press products provides confidence that we will maintain current growth levels for the year as a whole. We remain confident in the longer-term prospects for the group.”