Domino Printing Sciences maintained its record of uninterrupted growth since incorporation, but only just. The specialist printer manufacturer had currency movements and acquisitions to thank for a 2 per cent increase in adjusted pre-tax profits, after underlying sales plunged 14 per cent over the year.
Continued cutbacks in capital expenditure by its customers saw equipment sales fall 19 per cent in local currencies. And while the group said sales volumes began to improve from mid-2009 onwards, it added that demand for new equipment hadn't yet fully recovered to pre-recession levels.
Unsurprisingly, given weakness in worldwide manufacturing industries, sales of related fluids and consumables such as inks and filters were also softer. Revenues from this business are directly related to customers output, and fell 7 per cent over the year, although Domino said trading had returned to more normal levels by the end of the year.
After reducing headcount by 10 per cent as part of a restructuring effort that saw two factory closures and production transferred to Cambridge, Domino has initiated further streamlining in Germany. The programme there has resulted in a one-off charge of £4.9m, but will save an additional £3m annually.
Broker RBS expects adjusted full-year pre-tax profit forecasts of £38m and EPS of 24.3p (from £35.7m and 23.7p in 2009).
DOMINO PRINTING SCIENCES (DNO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 307p | MARKET VALUE: | £336m | |
| TOUCH: | 306-307p | 12-MONTH HIGH: | 322p | LOW: 144p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 130p* | NET CASH: | £29m | |
| Year to 31 Oct | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 192 | 27.3 | 18.4 | 6.84 |
| 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 |
| % change | +1 | +11 | +16 | +10 |
Ex-div: 3 Mar Payment: 1 Apr *Includes intangible assets of £85.3m, or 78p per share | ||||
