A new industrial revolution driven by digital technology promises to haul Cambridge UK-based Domino Printing Sciences into a new era of global growth, chairman Peter Byrom has revealed.The business has been building a platform in Cambridge to ensure it is positioned to take advantage as digital technology replaces traditional printing techniques in packaging and other applications.
Heavy investment in R & D has led to a stream of new products which Byrom believes will be in the vanguard of the revolution.
Domino’s strategy has clearly swayed market sentiment as its stock rose 11.50p (2.26 per cent)to 520.50p despite posting lower interim revenues and profits and warning that it may only get close to hitting full-year sales to match last year’s.
Domino, which is expanding its Cambridge headquarters, saw revenue to April 30 fall three per cent to £151m and profit before tax drop nine per cent to £24.7m.
Byrom said difficult trading conditions globally were delaying customers' investment decisions but Domino still achieved double digit growth in the US, completed two acquisitions in June and reports growth in laser, TTO and digital label press sales.
The interim dividend was increased by 10 per cent to 7.24 pence
Byrom said: “New equipment revenues were four per cent down as economic conditions and general uncertainty in the short-term outlook led to delays and deferrals of investment decisions by some of our customers.
“Volumes of our newer technology products, Laser, Thermal Transfer Overprinting and the K600i digital press, were ahead of the prior year but our sales of traditional technology printers were depressed, in particular in Europe, China and SE Asian markets.
“Demand for our consumables and other after market products, which represent approximately 60 per cent of sales, has been in line with our expectations.
“We have continued to invest in Research & Development and have made good progress with our new platform development. We look forward to seeing new products based upon this platform over the next two years.
“There is general uncertainty about global economic conditions and we remain cautious about immediate prospects for market recovery. Our expectation is that sales for the full year will be close to those achieved last year. We remain confident in the quality of our business and in the longer-term prospects for growth.”