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Domino Printing (DNO)

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Tuesday 19 March, 2013

Domino Printing

Interim Management Statement

RNS Number : 2884A
Domino Printing Sciences PLC
19 March 2013
 



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 2012, the beginning of our new financial year, to the date of publication of this statement.

 

Performance

 

Sales in the four months to the end of February 2013 were 11 per cent ahead of the equivalent period last year.   Growth in the core business was 8 per cent, including 1 per cent arising from favourable movement in exchange rates.  Acquisitions made during 2012 contributed 3 per cent.

 

Equipment revenues were 9 per cent ahead of prior year, fluids and other consumable revenues were 9 per cent ahead and spares and services revenues improved by 13 per cent.

  

We have seen no appreciable change in market conditions from those experienced during 2012.  Our businesses in Europe continue to report deferral of equipment replacement and a general low level of customer confidence in economic growth to support investment decisions.  We have continued to see progress in North America and in Asia, however our business in China has stabilised.

 

We are pleased with progress in sales across the full printer range, including Continuous Ink Jet where volume growth is in the mid single digits.  We continue to see keen pricing of equipment in some markets but the impact on Group-wide average selling prices has not been material over the period.

 

We have shipped our first full colour digital label press and we are pleased with the sales activity and order intake for this and the monochrome product. 

 

Graph-Tech and PostJet have contributed revenues in line with our expectations and progress in both is in line with plan.

 

TEN Media

 

TEN Media (of which Domino has a 14.85 per cent equity interest) has begun its system validation programme, but compliance approvals and local operational issues have held up progress.  The timescale to completion of this phase and the subsequent rollout remain uncertain.

 

TEN Media has determined that it will need a new injection of cash in order to be in a position to commit to a full roll out programme (and on 15 March agreed to appoint advisers to assist in raising new capital).   While remaining supportive of TEN and its objectives, the Domino board does not presently intend to commit further capital to the business.  We are awaiting details of TEN Media's intentions in terms of nature and scale of new capital and will adjust the carrying value of our investment in TEN Media as necessary once the position is clearer.   

 

Balance Sheet and Cash

 

The Group has generated cash of £7.7m in the first four months of the year and remains net cash positive.  Net cash at the end of February 2013 was £23.5 million.

 

Outlook

 

We remain cautious about market conditions in Europe and continue to note a level of reluctance among some customers to invest, in particular in replacement equipment.  In North America and Asia we see signs that investment is returning to more normal levels. 

 

We are pleased with progress with our new digital label press products.

 

While we are concerned at the continuing delays in TEN Media, we have taken steps to ensure there is no material impact on expected underlying results in 2013. 

 

We are controlling costs carefully but remain committed to the key investments and legislation backed initiatives which we expect to deliver opportunities for growth of the business in the medium term.

 

 

 

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 25 June 2013 as part of the Interim Statement for the six months ending 30 April 2013.

 

                                                    

Peter Byrom

Chairman

19 March 2013

 

 

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
 
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