Tougher year awaits Domino

However, sales slowed in the second half, as the worsening political situation in the Middle East and tensions in Ukraine knocked customer confidence. This difficult market backdrop is expected to persist in the current financial year, and management warns that profits will remain flat as it continues to ramp up research spending.

Chief executive Nigel Bond told us that R&D is at the heart of Domino's business as it enables the group's product range to remain competitive. He says the £18.2m spent in the period has left Domino in a stronger position than its rivals as markets deteriorate once again. That was underlined by new product releases that drove equipment revenues up by a tenth in local-currency terms.

Mr Bond's main concerns are stagnating growth in China, an unstable European economy and continued foreign exchange headwinds. But in spite of these pressures, he is confident that things have stabilised in Europe since the recession, ruling out a return to the "dark days".

Broker Numis expects adjusted pre-tax profit of £58m this financial year, with EPS of 38.8p (from £57.6m and 40.0p in 2013-14).