In his preliminary statement for the year ended October 31, 2008, Peter Byrom, chairman of Domino Printing Sciences, comments: “Sales in 2008 were in excess of £250 mn for the first time in the group’s history. We celebrated 30 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.
The group’s 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 mn.
He continues: “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 mn.
“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 mn has been made against the operating profit for the year. The saving from these changes is expected to be £10 mn a year.”
He concludes: “The slowdown 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 for the future.”
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