The company, which manufacturers printers for barcodes and labels, posted a one per cent decline in annual turnover to £312m, owing to weak sales in Europe. This is the first time revenue has fallen since the company was incorporated.
Pre-tax profits fell by 10 per cent to £54m due to higher investment in research and development. “This impacts short-term profit but means the group remains well placed to deliver sustained growth, even in more difficult markets,” Domino Printing said yesterday.
However, the City was not impressed, sending shares in the FTSE 250 constituent down 6.7 per cent yesterday. The company’s chairman, Peter Byrom, put the disappointing performance down to difficult market conditions.
“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,” Byrom said.
Domino attributed some of the poor performance in China to a third-party manufacturer passing off equipment as Domino-branded products.