Domino Printing Sciences plc
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Founded in 1978 and headquartered in Cambridge, UK, Domino has a global reputation for the development and manufacture of coding, marking and printing technologies that satisfy the requirements of manufacturers and commercial printers.
www.domino-printing.com
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2006 Half Year Highlights
Half Year ended 30 April 2006
Release date: 27.06.2006
Highlights
¢ Market share gains in continuous ink jet printing
¢ Recent acquisitions continue to contribute significantly to growth
¢ Strong sales growth across Asia region
¢ Increased expenditure on research and development, driving further new product releases
¢ Acquisition of Enterprise Information Systems Inc to enhance our position in the emerging
Track and Trace market opportunity
¢ Net cash inflow from operating activities before taxation of £12.3m.
Peter Byrom, Chairman, commented 'We have produced a further six months of strong sales and profits growth from both our core businesses and all of our recent acquisitions.
'Equipment volumes in our coding and marking business units increased compared to the corresponding period last year and we achieved market share gains in continuous ink jet printing for primary product coding applications. We continue to maintain gross and net margins due to new product introductions, global material sourcing programmes and manufacturing productivity gains.
'We have invested further during the first half year in both our research and development capability and our Track and Trace business, the activities of which include the deployment of RFID. We are encouraged by progress and in the full year expect to spend the additional £2.5 million that we set aside at the start of the year for these activities.
'Demand for our products remains strong. We expect to enhance our product range further in the second half of the year. We are well placed in our markets and we look forward with confidence.'
For further information visit our website: www.domino-printing.com
Issued on behalf of Domino Printing Sciences plc by Bankside Consultants Ltd - Ian Seaton
Enquiries:
Peter Byrom
Chairman
Nigel Bond
Group Managing Director
Andrew Herbert
Group Finance Director
T+44 (0)20 7367 8891 until 12.15 / T+44 (0)1954 781888 after 14.30
DOMINO PRINTING SCIENCES PLC
Statement from Mr Peter Byrom, Chairman
Operating Results
Sales for the first six months of the year grew by 9 per cent, compared to the corresponding period last year, of which 4 per cent is attributable to favourable movements in exchange rates and 2 per cent to the impact of Citronix which we acquired in July 2005. Our other recent acquisitions, Wiedenbach, Purex and Pri-Ma-Tech, all reported growth in the six months to 30 April 2006.
In our core product identification business, the A-Series continuous ink jet printer range continues to lead the market. Volumes, including Citronix, grew significantly in the six months to 30 April 2006 compared to the corresponding period last year, resulting in a gain in global market share. Revenue growth was 11 per cent.
Printer volumes in our Laser and Outer Case Coding businesses were both ahead of the corresponding period last year. Commercial Printing revenues were down, but this business continues to deliver a positive bottom line.
Demand for our products remains strongest in Asia; all of our businesses in the region have had a positive first half to the year. Volumes in China and India were particularly strong. Overall sales in Europe are ahead of last year although demand in Western Europe continues to be impacted as the manufacturing base in the region moves to Eastern Europe and Asia. Sales in the Americas maintained recent positive momentum.
The gross profit margin of the Group for the six months period was 49.3 per cent compared to 49.8 for the first six months last year, and up on the 48.1 per cent achieved in the second half last year. We continue to reduce product costs through global material sourcing activity and manufacturing productivity gains.
We increased research and development expenditure in the first half to £5.2 million from £4.9 million, as we invested further in new products and technology to extend our market leadership position. We launched a number of new products in the first half year and have some significant additional launches planned for the second half to enhance both our ink jet and laser product ranges.
We have continued to invest in our Track and Trace Solutions business. We acquired Enterprise Information Systems Inc., a company specializing in the integration of printer, tagging and reader technologies to provide traceability solutions through the supply chain (including the deployment of RFID). This acquisition enhances our capability and provides a platform for accelerated growth. We are involved in pilot studies with a number of major customers, and are working closely with a variety of partners to enable us to offer a wide and comprehensive set of solutions to meet customer demands. This is a year of investment ahead of sales in 2007 and beyond.
Profit on ordinary activities before taxation grew by 8 per cent to £14.0 million. Net cash inflow from operating activities before taxation was £12.3 million.
The Board has declared an interim dividend of 2.88 pence per share, representing a 20 per cent increase over 2005.
Outlook
Demand for our products remains strong. We expect to enhance our product range further in the second half of the year. We are well placed in our markets and we look forward with confidence.
Peter Byrom
Chairman
A French translation of this press release is available on request.