Domino profit shoots up as cost-cutting measures pay off

The coding and marking specialist this morning revealed revenue for the year of £256.1m, up 1% on 2008. Pre-tax profit rose by 11% to £28m.

Domino said new equipment sales had dropped by 19% as customers looked to extend the use of existing equipment and reduce capital investments.

Sales of consumables recovered in the second half of the year, while spares and after-sales service remained at the same level as last year.

Chairman Peter Byrom attributed the strong performance to “early action to reduce cost in anticipation of the global economic downturn” and said the company remained optimistic about the outlook for 2010.

“The relative weakness of sterling has contributed to the results, enabling the group to report an unbroken record of sales growth in the 31 years since Domino was formed in 1978,” he added.

Domino invested £11.5m in research and investment over the year and said there had been increased sales for its newer product ranges.

The Cambridgeshire-based firm also continues to restructure its operation and expects to complete a restructuring of its Wiedenbach business in Germany in the first half of 2010. Together with the integration of Photon Energy into Sator Laser, the German headcount will be reduced by 50 jobs.

Domino is also closing its Purex North America plant in Montreal, Canada, after it completes the transfer of business to a Texas plant in March.

“We believe none of the actions taken have diminished or capacity to grow as markets recover,” the firm said in this morning’s statement.

DOMINO PRINTING SCIENCES FULL-YEAR RESULTS

Revenue £256.1m (£253.4m in 2008)
Operating profit £35.7m (£34.9m)
Pre-tax profit £28m (£25.2m)

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