Domino defies market with record profit
Domino Printing Sciences is pushing ahead with expansion of its Cambridge UK headquarters despite a difficult macro-economic backdrop after posting record profits despite the global gloom.
Domino paraded its 33rd consecutive year of sales growth as revenues rose five per cent to £314.1m for the year to October 31.Business Weekly’s reigning ‘Business of the Year’ also hoisted profits 10 per cent to £57.4m.
Chairman Peter Byrom said the company had applied for planning permission to significantly expand its Cambridge base and the outcome would be known in early 2012.
Domino has increased its dividends in each of the 26 years since it was floated on the London Stock Exchange in 1985. This year it is proposing to increase the dividends to 18.75p per share – 20 per cent up on last year’s 15.62p.
Byrom said: “In a year of mixed macroeconomic conditions, the group has delivered sales growth and record profit. Sales of £314.1 million were 5 per cent ahead of last year extending the unbroken 33 year record of annual revenue growth. Underlying pre-tax profits were also a record at £59.5 million.
“Our businesses in the developing markets of Europe and in the Middle East, Africa and Asia all reported strong growth. Market conditions elsewhere were generally much tougher and while the Group achieved good growth in the UK and Germany, sales in other parts of Europe and in North America were below last year's levels.
“We introduced three new product lines during 2011 and have seen progressive take-up. Products introduced in the year represented 20 per cent of total equipment sales. During the year we increased the headcount of the group. The majority of new staff are in our sales channels, in particular in Asia.
“The results for the year reflect a further improvement in underlying return on sales which increased to 18.9 per cent. Investment in Research & Development was £15.3 million. We have continued with additional product launches during the year and have made good progress towards our goal of introducing a whole new family of printers based upon common electronics architecture.
“The group has a strong balance sheet and had net cash of £22.8 million at year end. Domino is mindful of the effects on its markets of the general economic slowdown, as reflected in the changing pattern of sales in 2011, but the combination of new products and strong global reach mean we are well positioned to benefit from the available opportunities in this more uncertain climate.”
