Cambridge-based Domino Printing Sciences Plc was confident of a bumper second half when it reported its half-year figures. This has largely been delivered, the company reporting pre-tax profits up 44% from a disappointing ú9.1m to ú13.0m, on turnover up 10% to ú89.9m. However, it urged caution once more for the first half, causing its shares to fall 11 pence to 552 pence. This maudlin prediction is based on start-up costs incurred from three acquisitions made in the final quarter, and technical difficulties experienced with one of its ink-jet products. The problems have been cleared up but the knock-on effects in terms of orders is yet to become apparent. Chairman Gerald Dennis believes a larger than usual disparity between first and second half results will reflect these difficulties. The US markets have been particularly bouyant for Domino, profits soaring 263% to ú4.5m on a 31% increase in turnover to ú31.1m, but European business was disappointing, profits crept up 6% from turnover that was flat at 58.8m. Dennis described the economic recovery in Europe as sluggish. Despite having ú16.3m in the bank, Domino has only modest investment plans in its US and UK operations. It has had a record year in terms of sales and earnings, and perhaps because of recent problems, is modestly predicting strategic consolidation and some progress for 1995. The directors are proposing a 21% rise in dividends to 9.6 pence.
