Domino Printing marks 30 years of ops with continued revenue growth; ‘fundamentals’ deliver record 08 results
High speed inkjet specialists Domino Printing Sciences plc said revenues grew 9%, of which 5% was due to favourable foreign currency movements and underlying pre-tax profits increased 7% to £35.3m in the year to end October.
The Cambridge HQ-ed company also said there had been exceptional costs of £8.3m associated with restructuring operations that were expected to deliver full year cost savings of £10m.
The Group's share price gained 1.5% in morning trading to 165.50p. It is now valued at around £180m, about half the level of a few months ago, before the wave of stock selling started in earnest. Three out of four watching brokers rate the stock as a strong buy (The other is neutral).
Chairman Peter Byrom said: "Sales in 2008 were in excess of £250m for the first time in the Group's history. We celebrated 30 years in business this year and in each of those years we have reported an increase in revenues.
"Despite the more uncertain global economic conditions in the second half of the year, the fundamental strength of our business has led to record results.
"Deterioration in global economic conditions over the second half of the year has depressed sales volumes of new equipment whilst after market revenues, which account for more than half of sales, remained at normal levels.
"Gross margins before exceptional costs have been maintained at 48% and R&D expenditure before exceptional costs has been increased by 13% to £12.8m. During the year the Group acquired solid state laser products and technology and Thermal Ink Jet products and know-how to extend our product range.
"In anticipation of continuing weakness in global markets, the cost base of the business has been reduced through re-organisation of manufacturing operations and other restructuring. As a result, the Group has reduced its headcount by approximately 10%. An exceptional charge of £8.3m has been made against the operating profit for the year. The saving from these changes is expected to be £10m a year.
"The slow down of the global economy will inevitably have an impact on customers' investment plans. However, the fundamental strength of the business and significant after market revenue gives us optimism for the future."
