News

Domino Printing Sciences is upbeat about its long-term performance despite reporting a 28% drop in pre-tax profits in the first half of the financial year.

The coding and marking specialist said the economic downturn had contributed to a 1% fall in sales, to £124.3m, in the half-year to 30 April, but chairman Peter Byrom remains confident about the group's future outlook.

"We responded quickly and decisively at the end of the last financial year to reduce cost in light of changing market conditions and we continue to take actions to consolidate operations and reduce cost," he said in a trading statement this morning.

Domino said reduced spending by customers, particularly in electronics, automotive and building products, meant new equipment sales had dropped by 28% in local currencies compared to last year. Fluids and consumables sales fell by 12%.

The Cambridge-based firm was, however, boosted by the contribution from acquisitions made in the second half of 2008.

Alternative Printing Services, PAT Technology Systems and the Photon Energy Group brought a 3% growth in revenues. The weak pound also benefited Domino's results.

Domino has cut 20 jobs in the first six months of the year, on top of the 200 announced in October, and continued to restructure its manufacturing operations. PAT's Canadian operation has been moved to the firm's Purex factory in Rotherham.

"Domino is well placed to meet the demands of exceptional market conditions and the half-year results demonstrate the strength and resilience of the business," said Byrom.

DOMINO HALF-YEAR RESULTS

Revenue £124.3m (-1% on 2008)
Pre-tax profit £11.4m (-28%)
Net cash flow £16.6m (41%)
Share price £2.31 (at 11am)