Domino scales fresh peaks
Domino Printing Sciences in Cambridge, not content with producing another blockbuster year in 2005, has pledged a new product spree that should push turnover and profits to new record levels in 2006.Domino Printing Sciences in Cambridge, not content with producing another blockbuster year in 2005, has pledged a new product spree that should push turnover and profits to new record levels in 2006.
Sales for the year to October 31 were eight per cent up to £192m (2004: £178.3m) and pre-tax profit five per cent higher to £26m (£24.7m).
There were a number of bonus positives for Domino during the year, among them the recovery in commercial printing markets in both North America and Europe, yielding 20 per cent revenue growth and the profit contributions from its 2004 acquisitions, which were ahead of plan.
And there’s more where this has come from, chairman Peter Byrom pledged.
“We have continued to invest significantly in Research & Development and have further exciting new products planned for release this year.
“We are setting aside an additional £2.5 million from 2006 profits to invest in building a greater competence in providing RFID solutions to our customers and in other new product programmes.”
Byrom said equipment sales volumes grew in each of Domino’s four operating divisions compared to the corresponding period of 2004. Sales of consumables and after market products also grew as a result.
Domino spent £8.3 million on R & D, following on from the record investment of £9.6m in the previous year. Byrom said: “We invested £0.5m in developing our capability in a new technology for the company, RFID (Radio Frequency Identification) traceability systems, and will invest more in 2006.”
The fresh surge in sales and profits was achieved in a period of increased competitive pressure, especially in Asian markets.
Domino generated 12 per cent growth in its European businesses in the year, partly due to contributions from the new businesses, but all of the group’s core sales and service subsidiaries in Europe had a strong year, including the UK where – after a number of more difficult trading years – Domino achieved strong growth in printer volumes. Domino continues to see good demand from Eastern Europe.
The resurgence of the group’s commercial printing business in the US, which started in the second half of 2004, continued through 2005 and was the primary driver of a four per cent growth in US sales.
Overall top-line growth, however, was held back by a fall in the number of large contracts in Domino’s laser business in the US during 2005.
The subsidiaries in Canada and Mexico both had excellent year while in South and Latin America, Domino achieved substantial volume growth.
The group continues to bestride the Asian tiger in trade terms. Domino continues to have the leading brand in both China and India and good volume growth was again achieved in both countries, although prices are coming under increased pressure and some average selling prices have declined.