Packaging
Domino Printing: 2010 Results
Wednesday 15. December 2010 - From the Preliminary Statement for the year ended 31 October 2010
2010 2009 Change
Revenue £300.0m £256.1m +17%
Operating profit before amortisation and exceptional costs
(note 9) £54.5m £35.7m +53%
Profit before taxation £52.1m £28.0m +86%
Underlying profit before taxation (note 9) £54.7m £35.7m +53%
Net cash inflow from operating activities before taxation £59.7m £45.4m +32%
Basic earnings per share 34.25p 17.81p +92%
Basic underlying earnings per share (note 2) 36.05p 23.68p +52%
Dividends per share 15.62p 13.02p +20%
Highlights
Record sales and our 32nd consecutive year of revenue growth
Unit sales volumes recovered strongly with growth of 30 per cent
Benefit of prior year restructuring demonstrated in improved gross and net profit margins
Investment in Research and Development increased by 36 per cent
Record underlying profit before taxation (note 9)
Dividend increased by 20 per cent, the 25th consecutive year of increase since flotation
Peter Byrom, Chairman, commented “In improved economic conditions the Group has generated an increase in sales of 17 per cent of which 16 per cent is underlying growth in our core business and 1 per cent is attributable to acquisitions made in 2009.
“Our customers increased their capital expenditure in 2010 resulting in increased demand for our equipment. Unit sales volumes have grown by 30 per cent compared to the corresponding period last year. Demand for our fluids and other consumables also increased as customers’ production output levels rose.
“Sales growth has been achieved in all geographic regions and across the full product range with strongest growth in the newly acquired product technologies.
“The results for the year reflect the benefits from actions taken in 2009 to consolidate our operations and restructure the Group. Gross margins rose from 46.4 per cent to 49.7 per cent and operating returns increased to 18.2 per cent.
“We have made significant additional investment in Research and Development. The first output from this investment was the launch of a new range of primary package coding equipment at Salon d’Emballage, an exhibition in France in November 2010. This industry leading, innovative product range will be introduced across our entire sales network during the early part of 2011.
“During the year we have increased the headcount of the Group by approximately 5 per cent. The majority of new staff are in our sales channels, increasing our capacity to capitalise on the opportunities in Asia and to promote our new products.
“The Group has a strong balance sheet and increased its net cash balances to £49.5 million at year end.
“The combination of an exciting range of new products and additional investment in selling and marketing, together with a strong balance sheet, gives us confidence in the future.”