Domino Printing Sciences Plc, the Cambridge manufacturer of ink-jet products, has reported that pre-tax profits for the year to October 31 rose 29% to UKP6.1m from UKP4.7m, on a turnover of UKP45.9m, up by 21% from last year’s figure of UKP38m. However, net profit has fallen to UKP3.7m compared to UKP4.6m last time, largely due to a combination of extraordinary items and interest. An exceptional credit of UKP69,000 results from charges of UKP568,000 for staff redundancies and reorganisation in the UK, offset by exceptional credit of UKP626,000 reflecting the accounting of stock transactions between group companies and new subsidiaries in France and Spain. Interest charges are $485,000, but Domino has reduced net borrowings to UKP700,000. The company says that the 31% tax provision on pre-tax profit was higher due to reduced availability of tax loss credits in the US. Despite the list of exceptional items, the results are better than forecast, and chairman Gerald Dennis attributes that to the performance of new subsidiaries which contributed UKP376,000 to pre-tax profits. The company’s Spanish subsidiary was acquired in May for UKP629,000, and that was followed in July by a 76% holding in SA Alain Young and the outright acquisition of SCI du Bel Air. Domino bought a further 16% of Alain Young in September by subscribing for new share capital, and is obligated to acquire the remaining 8% by December 1995. The outlay for the French acquisitions to date is UKP2.3m. The company says that it has seen growth both in geographical and industry segments, and around 80% of turnover is derived from overseas activities. Sales in the UK, Germany and the Netherlands continue a steady growth path, but sales in the US and Far East grew by 10% and 40% respectively. Domino has sold three freehold buildings for UKP3.3m and is negotiating a further sale. Dennis says that the first three months are in excess of last year’s sales, and that Domino is entering the second quarter with a strong order book. The City seems to approve and the share price was up 3p at UKP1.86 yesterday afternoon.
