Domino optimistic despite ‘challenging times’

The Cambridgeshire firm has today (9 December) reported a 21% fall in pre-tax profit to £25.2m for the year ending 31 October 2008, on revenue of £253.4m.

However, the cost reduction programme, which includes a 10% cut in the firm’s workforce, is represented in the results as a £8.3m exceptional charge. Underlying pre-tax profit rose by 7% to £35.3m.

Domino expects the savings from the cost cuttings to be around £10m a year.

Group chief executive Nigel Bond told Packaging News the cost reductions had been necessary to balance the firm’s books and he was hopeful there would be no further need to cut jobs.

“You need to keep one eye on the long term and make sure the firm is in a strong position as the economy starts to grow again. It is a challenging time, but we have strengthened the company through acquisitions and cost cutting,” he said.

Bond added he was optimistic about the year ahead, particularly as the after sales market remained solid, but that it would not be neglecting the equipment side.

“Equipment is the life-blood of the firm, and the source of future after-sales. My goal is to make sure we have 31 years of continuous growth and the record doesn’t stop here,” he said.

Domino benefited from favourable exchange rates – 5% of the sales growth was due to currency transactions, and Bond said that if they remained the same it would be “helpful” to the business in the year ahead.

Domino’s share price rose by 9% to 161.5p as trading started this morning.

Domino Printing Sciences was incorporated in 1978 and manufactures a range of packaging coding, identification, marking and personalisation products for the food, drink and pharmaceutical industries, among others.

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