Highlights
Strong performance in the USA and many developing economies
Good volume growth from new products
Robust after market sales
Investment made in digital printing business; good progress with digital label press products
Strong operational cash flows and robust balance sheet
Dividend increased by 10 per cent
Peter Byrom, Chairman, commented "Against the backdrop of a continuing tough economic environment the Group has delivered sales of £312.1 million, underlying profits of £53.7 million and net cash inflow from operating activities before tax of £56.4 million. The Board has declared an increase in the annual dividend of 10 per cent.
"Our businesses in the USA, most of Asia, the Middle East and Africa have all made good progress but in parts of Europe and in China sales were below last year. Market conditions have been more difficult and we continue to see extended sales cycles for equipment. The after market business has continued to perform robustly and while capital spend among customers is reduced compared to last year, consumable sales grew by 6 per cent, in line with our expectations.
"We have been pleased with the performance of our newer product lines and have once again recorded good volume growth in Laser, Thermal Transfer Overprinters and Thermal Ink Jet. Our new digital label press, the K600i, exceeded our sales targets in the year and, following a successful beta trial, we were pleased to launch the N600i full colour label press at PackExpo in the USA during October. We already have first orders for this product.
"Investment in Research and Development was increased to £16.7 million. We have launched a number of new printer and fluids products over the course of the year and have made further progress towards the introduction of a new generation of printers based upon common technology architecture.
"In June, the Group acquired Graph-Tech and PostJet, adding to our core capability in digital printing and opening up new opportunities in this fast growing market.
"TEN Media has made progress with the development of the full supply chain compliance systems which will exclusively use Domino products for all coding requirements. Timing of the roll-out programme remains uncertain.
"We remain cautious about market conditions and their impact on the investment plans of our customers. Against this backdrop we are optimistic about prospects for the future. We continue to invest in new products which are driving growth, our after market business is robust and we expect our investments in new opportunities to contribute to growth in 2013 and beyond"
