Domino Printing reports healthy sales rise

Domino Printing said sales in the four months to the end of February 2013 rose 11 per cent from the same period last year and while it remains cautious about market conditions in Europe it has seen an improvement in North America and Asia.

Industrial coding, printing and marking technology firm recorded 8.0% growth in its core business during the period, including 1.0% from favourable exchange rates. Acquisitions made during 2012 contributed 3.0%.

Equipment revenues rose 9.0% on the prior year, fluids and other consumable revenues gained 9.0% and spares and services revenues improved by 13%.

TEN Media, of which Domino has a 14.85% stake, has started its system validation programme, but compliance approvals and local operational issues have held up progress, Domino explained.

Looking ahead the group said: "We remain cautious about market conditions in Europe and continue to note a level of reluctance among some customers to invest, in particular in replacement equipment. In North America and Asia we see signs that investment is returning to more normal levels."

The group said it is pleased with progress with its new digital label press products.

"While we are concerned at the continuing delays in TEN Media, we have taken steps to ensure there is no material impact on expected underlying results in 2013," it added.

The group said it is controlling costs carefully and expects to deliver opportunities for growth of the business in the medium term.

The group generated cash of £7.7m in the first four months of the year and remains net cash positive. Net cash at the end of February 2013 was £23.5m.

CJ