Spotty performance at Domino Printing

Industrial coding, printing and marking technology firm Domino Printing is sticking with its forecast that full-year sales will be at a similar level to last year.

Sales in the ten months to the end of August were 1% ahead of the equivalent period last year at constant exchange rates. Movements in average rates over the period result have not been favourable, however, and more or less wiped out that gain.

Equipment revenues were 2% down year-on-year with average selling prices broadly stable. Fluids and other consumable revenues were 5% ahead of the prior year, in line with year-on-year growth of Domino's installed base of printers.

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Spares and services revenues were marginally ahead of the prior year after adjusting for the disposal of the non-coding element of the solid state laser business of Photon Energy made last year.

The above performance has been achieved in an environment where customers in some mature markets have been putting off decisions on upgrading equipment, while even in developing markets the appetite for investing in new kit is not as sharp as it has been.

"Confidence levels among manufacturers in China continue to fall and expansion plans in many customers have been put on hold. Our businesses in India and North America continue to report good growth," the company reported.

Net cash at the end of August 2012 was £2m. Net cash and cash equivalents at the end of April stood at £19.6m; the group noted that £17.8m has been spent on the acquisitions of Graph-Tech and PostJet since the end of April.

"Looking further ahead, we see good opportunities for growth of the business in the medium term, assisted by legislation and our strategic initiatives, and will continue to invest so as to position the group to address them," the company said.

JH