Domino Printing Sciences PLC Interim Management Statement (2495M)
September 14 2012 - 2:00AM
UK Regulatory
TIDMDNO
RNS Number : 2495M
Domino Printing Sciences PLC
14 September 2012
INTERIM MANAGEMENT STATEMENT
This statement is issued in accordance with the requirements of
the Disclosure and Transparency Rules and relates to the period
from 1 November 2011, the beginning of our new financial year, to
the date of publication of this statement.
Performance
Sales in the ten months to the end of August are 1 per cent
ahead of equivalent period last year at constant exchange rates.
Movements in average rates over the period result in a 1 per cent
decline in consolidated numbers. Equipment revenues are 2 per cent
below prior year; average selling prices are broadly stable. Fluids
and other consumable revenues are 5 per cent ahead of prior year;
this is in line with year on year growth of our installed base of
printers. Spares and services revenues are marginally ahead of
prior year after adjusting for the disposal of the non-coding
element of the solid state laser business of Photon Energy made
last year.
The rate of gross profit margin remains stable and in line with
that reported in interim results. We are maintaining close control
over operating costs while continuing to invest in our businesses
in developing markets and in key research and development
projects.
Market conditions
Market conditions remain fragile and customers' confidence to
make investment decisions is low. We continue to see deferral in
replacement of equipment in some more mature markets, including
much of Europe, and reduced levels of investment in expanding
capacity in developing markets. Confidence levels among
manufacturers in China continue to fall and expansion plans in many
customers have been put on hold. Our businesses in India and North
America continue to report good growth.
Initiatives
We continue to make progress in our key strategic projects. TEN
Media field trials are continuing to take place and these will be
followed by validation. Our full colour label press the N600i has
completed extensive field trials and we expect full launch in
Europe and North America imminently. The monochrome version
continues to attract new customers and we are pleased to report
that order intake for the product is already in excess of our
target for the year.
Acquisitions
During June we completed the acquisitions of Graph-Tech and
PostJet. Graph-Tech is a technology and product development based
company critical to the success of our digital press business. We
are pleased with progress in the integration of the team with our
core digital print group. PostJet is working on major opportunities
in large postal markets.
Balance Sheet
Cash has been used during the period since the interim results
on the acquisitions of Graph-Tech and PostJet (total GBP17.6m) and
on the final payments due under the earn-out arrangements with the
former owners of our Portuguese subsidiary and on-line coding TTO
business (total GBP2.9m). Payment of the interim dividend (GBP8.0m)
was made during August. Net cash at the end of August 2012 was GBP2
million.
Outlook
We remain cautious about market conditions and reiterate
comments made in our earlier statements that we expect sales in the
full year to be at similar levels to last year. We are controlling
costs carefully but remain committed to key investments.
Looking further ahead, we see good opportunities for growth of
the business in the medium term, assisted by legislation and our
strategic initiatives, and will continue to invest so as to
position the Group to address them.
Notes:
1. This Interim Management Statement, which is based upon
un-audited management accounts, has been prepared solely to provide
additional information to the shareholders of Domino Printing
Sciences plc in order to meet the requirements of the UK Listing
Authority's Disclosure and Transparency Rules. It should not be
relied upon by any other party, or for other purposes. Certain
statements made in this Statement have been made by the Directors
in good faith using information available up until the date that
they approved this Statement. Forward-looking statements should be
regarded with caution because of the inherent uncertainties in
economic trends and business risks.
2. The next update on trading is expected to be issued on
Tuesday 11 December 2012 as part of the Preliminary Statement for
the twelve months ending 31 October 2012.
Peter Byrom
Chairman
14 September 2012
Enquiries:
Domino Printing Sciences plc
Nigel Bond Group Managing Director 01954 781888
Andrew Herbert Group Finance Director 01954 781888
Smithfield Consultants
Will Swan 020 7360 4900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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