Business News
Domino: 2008 Results
Tuesday 09. December 2008 - Revenue growth of 9 per cent, 4 per cent before effect of currencies ? Operating profit growth before exceptional costs of 7 per cent ? Further increase in Research and Development expenditure ? Acquisition of Photon Energy brings solid state laser technology to fuel future growth in new markets ? Acquisition of Thermal Ink Jet products and know-how in aps Alternative Printing Services, enhances the Groups product range for core markets ? Continued strong cash generation from operations; the Group remains cash positive ? Exceptional costs of £8.3 million associated with restructuring operations, expected to deliver full year cost savings of £10 million ? Dividend increased by 20 per cent
Peter Byrom, Chairman, commented “Sales in 2008 were in excess of £250 million for the first time in the Groups history. We celebrated thirty years in business this year and in each of those years we have reported an increase in revenues. Despite the more uncertain global economic conditions in the second half of the year, the fundamental strength of our business has led to record results. Revenues grew by 9 per cent, of which 5 per cent was attributable to favourable foreign currency movements. Reported underlying pre-tax profits increased by 7 per cent to £35.3 million.
“Deterioration in global economic conditions over the second half of the year has depressed sales volumes of new equipment whilst after market revenues, which account for more than half of sales, remained at normal levels. Gross margins before exceptional costs have been maintained at 48 per cent and Research and Development expenditure before exceptional costs has been increased by 13 per cent to £12.8 million. During the year the Group acquired solid state laser products and technology and Thermal Ink Jet products and know-how to extend our product range.
“In anticipation of continuing weakness in global markets, the cost base of the business has been reduced through re-organisation of manufacturing operations and other restructuring. As a result, the Group has reduced its headcount by approximately 10 per cent. An exceptional charge of £8.3 million has been made against the operating profit for the year. The saving from these changes is expected to be £10 million a year.
“The slow down of the global economy will inevitably have an impact on customers investment plans. However, the fundamental strength of the business and significant after market revenue gives us optimism