Shares in printing manufacturer, Domino Printing Sciences (LON:DNO) edged up 1.7% to 473p this morning on reports that the FTSE 250 group was witnessing strong demand for equipment as economic conditions improve. Pre-tax profits at the company are up 110% to £23.9m for the six months to 30 April 2010 on the back of revenues which are 17% higher at £144.8m. The Board is increasing the interim dividend by 20% to 5.48p per share.
Elsewhere, Domino's like for like sales in local currencies grew by 17 % while acquisitions made in the second half of 2009 contributed a gain of 2% and movements in foreign exchange had a 2% negative impact. The Group advises that it has increased investment in research and development by 20% compared to the first half last year and will extend this further in the second half year as it launches a series of new products into the market over the next 12 months.
Domino develops, manufactures and sells a wide range of products and solutions that enable manufacturers to code, identify, mark or personalise their products and packaging. The company supplies customers operating in a range of market sectors including food producers, dairies, drinks manufacturers and the pharmaceutical industry.
Chairman Peter Byrom says: "The improvement in market conditions for our products, which we first saw in the latter part of 2009, has continued through to 30 April 2010. Our customers have increased their capital expenditure budgets, as a result demand for our equipment has been strong, and volumes grew by over 30 per cent compared to the corresponding period last year. Demand for our after market products has also grown significantly as customers' production output levels have improved."
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