Industrial ink jet printer company Domino Printing Sciences Plc of Cambridge is expanding its core operations and moving into allied fields of business. To do this it requires extra cash and so is out to raise UKP15.3m net by issuing up to 5.1m new ordinary shares at 310 pence per share against a price in the market of 387 pence, in a rights issue to shareholders of one new share for every four held, underwritten by Hill Samuel. Top priority for the money raised is to invest in technology for Domino’s core ink jet business. Secondly, Domino intends to strengthen its worldwide distribution network – in particular funds have already been committed to expand the group’s Wiesbaden premises in Germany, and a base in Singapore to serve the Pacific Rim is also planned. Once the core product and the distribution network has been strengthened, Domino intends to move into related technologies. The group recently took a majority stake in Pack Track Ltd for cash and loans totalling UKP500,000 and at the time undertook to buy the outstanding minority for UKP1.6m. Pack Track has a new range of mimeographic products that have been developed for in-house printing of packing materials, thus reducing the need for customers to stock pre-printed cartons and labels. High levels of capital will be required to support the development of this technology, Domino said. At the balance sheet level, any of the rights issue cash remaining will be used either to reduce the group’s UKP1m borrowing or to increase funds on deposit, depending on prospects.
