A record set of figures from Domino Printing Sciences reflected the strength of the global economic recovery. It reported impressive organic sales growth of 16 per cent, taking sales past the £300m mark for the first time.
Growth was broad based, but particularly strong in Asia and other emerging markets, where Domino had held headcount steady despite the recession to take advantage of the growth potential once conditions improved. Sales there grew by nearly 19 per cent to £63.3m, and emerging markets accounted for a high proportion of the 5 per cent increase in headcount in 2010. Domino's primary European division also had a good year, with sales climbing 16.7 per cent to £175m as companies freed up capital spending for the company's range printers. Customers' increased production boosted sales of ink supplies, adding an estimated £5m to sales, while a reduction in costs through 200 redundancies helped double net profit margins to 18 per cent. Chairman Peter Byrom said there are still concerns over the state of the European market, but results in other areas meant he was confident in the outlook.
Broker Altium Securities forecasts adjusted pre-tax profits for 2011 of £60m, giving EPS of 39.1p (from £54.7m and 35.8p in 2010).
DOMINO PRINTING SCIENCES (DNO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 574p | MARKET VALUE: | £633m | |
| TOUCH: | 573-578p | 12-MONTH HIGH: | 577p | LOW: 315p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 155p* | NET CASH: | £49.5m | |
| Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 208 | 28.2 | 18.6 | 8.21 |
| 2007 | 231 | 31.7 | 20.1 | 9.86 |
| 2008 | 253 | 25.2 | 15.3 | 11.8 |
| 2009 | 256 | 28.0 | 17.8 | 13.0 |
| 2010 | 300 | 52.1 | 34.3 | 15.6 |
| % change | +17 | +86 | +92 | +20 |
Ex-div: 9 Mar Payment: 7 Apr *Includes intangible assets of £81.2m, or 74p a share | ||||
