RNS Number:1351U
Domino Printing Sciences PLC
13 January 2004
13 January 2004
2003 RESULTS
From the Preliminary Statement for the year ended 31 October 2003
RECORD SALES, PROFITS, EARNINGS PER SHARE AND OPERATING CASH FLOW
2003 2002 Change
------ ------ --------
Sales #164.4m #161.1m +2%
Operating profits #20.5m #16.7m +23%
Pre-tax profits #20.3m #15.7m +29%
Net cash inflow from operating #32.5m #30.7m +6%
activities
Earnings per share 13.03p 10.39p +25%
Underlying earnings per share (Note 3) 13.60p 10.94p +24%
Dividends per share 4.75p 4.12p +15%
Highlights
* 46 per cent growth in laser printer sales volumes
* Strong growth in gross profit margin through improvements in operating cost
efficiency
* Operating profit up 23 per cent
* Earnings per share up 25 per cent
* Net cash inflow from operating activities in excess of #30.0m for second
year in succession
* Exciting new product development programme for 2004 and beyond
Peter Byrom, Chairman, commented: "The 12 months to 31 October 2003 has
been a record year for Domino. We have grown earnings per share at an
average annual compound rate of 14 per cent over the last six years.
"Sales volumes in our laser business grew 46 per cent, fuelled by the
highly successful S-Series scribing laser range launched at the end of
2002. We also increased sales volumes of our industry-leading A-Series
continuous ink jet printers. We made good progress in the second half with
our Outer Case Coding product range.
"The gross margins of the business were increased again, up to 48.9 per
cent from 46.8 per cent last year, due to our programme of efficiency
improvement and cost management. We increased our expenditure on research
and development to maintain a strong investment in new technology and new
product development.
"Operating profits of #20.5 million are a new record, representing growth
of 23 per cent over last year. Net cash inflow from operating activities
exceeded operating profit for the fourth consecutive year.
"We have good demand for our products and we have a strong new product
development programme for 2004. Trading at the start of the year is in line
with our expectations".
For further information visit our website: www.domino-printing.com
Issued on behalf of Domino Printing Sciences plc by Bankside Consultants Ltd
Enquiries:
Peter Byrom Nigel Bond Andrew Herbert Ian Seaton
Chairman Group Managing Group Finance Bankside Consultants
Director Director Ltd
T+44 20 7444 4157 until 12.15 / T+44 1954 781888 after 14.30
DOMINO PRINTING SCIENCES PLC
Statement from Mr Peter Byrom, Chairman
I am pleased to report another record year for Domino.
Sales increased by 2 per cent in sterling and by 3 per cent in local
currencies.
Gross profit margin improved again and was 48.9 per cent compared to 46.8 per
cent last year. Operating profits at #20.5 million were 23 per cent ahead of the
#16.7 million achieved last year.
Earnings per share were 13.03p compared with 10.39p last year, an increase of 25
per cent. Earnings per share have grown on average at a compound annual rate of
14 per cent over the last six years.
Net cash inflow from operating activities was more than #30 million for the
second year running. This has been achieved through rigorous attention to
working capital and has been facilitated by the reorganisation of back office
systems and the implementation of new information technology systems.
At 31 October 2003 net cash balances amounted to #17.1 million.
We have maintained our investment in research and development and spent #8.5
million (5.2 per cent of sales) compared with #8.3 million last year. Domino is
recognised as a leader in research and development in the sector.
Our core Product Identification business has maintained its leadership position
with new applications and inks being introduced during the year.
The Laser business had an outstanding year. Sales volumes grew by 46 per cent.
The S-Series scribing lasers introduced last year have received a rapid market
acceptance and are now recognised globally as the market leader. Further
developments to extend the markets and applications served are in the pipeline
for launch in the coming months.
Development of the Outer Case Coding business is on plan. Acceptance trials by
major retailers have demonstrated the benefits of our new products.
These results are a tribute to the dedication and commitment of our employees
and the Company's training programmes.
Prospects
We expect to maintain our leadership position in the core Product Identification
business. The continued growth of the Laser business will be fuelled by the new
products to be introduced over the coming months. The market for our Commercial
Printing business remains weak but new business is ahead of last year. The Outer
Case Coding business is continuing to develop well.
Our technological leadership, sales effectiveness and strong cash generation
give us confidence about our future.
Dividend
The Board is recommending a final dividend of 3.09p per share, making a total of
4.75p for the year, representing an increase of 15 per cent over 2002.
Peter Byrom
Chairman
13 January 2004
Consolidated Profit and Loss Account
For the year ended 31 October 2003
Total Total
2003 2002
#'000 #'000
Turnover - continuing operations 164,403 161,087
---------- ----------
Cost of sales (84,073) (85,696)
---------- ----------
Gross profit 80,330 75,391
Selling and distribution expenses (29,499) (28,509)
Administrative expenses (21,811) (21,946)
Research and development expenses (8,497) (8,262)
---------- ----------
(59,807) (58,717)
---------- ----------
Operating profit - continuing operations 20,523 16,674
---------- ----------
Interest payable - net (204) (978)
---------- ----------
Profit on ordinary activities before taxation 20,319 15,696
Tax on profit on ordinary activities (5,903) (4,714)
---------- ----------
Profit on ordinary activities after taxation 14,416 10,982
Equity minority interests (421) 108
---------- ----------
Profit for the year attributable to shareholders 13,995 11,090
Dividends (5,110) (4,489)
---------- ----------
Retained profit for the year 8,885 6,601
---------- ----------
Earnings per share (p) 13.03 10.39
Diluted earnings per share (p) 12.94 10.16
Underlying earnings per share (p) 13.60 10.94
Dividend per share (p) 4.75 4.12
Dividend cover (times) 2.74 2.47
---------- ----------
Consolidated Balance Sheet
As at 31 October 2003
2003 2002
#'000 #'000
--------- ---------
Fixed assets
Goodwill 10,719 11,160
Intangible assets 39 43
Tangible assets 23,894 25,951
Investments 1,305 970
--------- ---------
35,957 38,124
Current assets
Stocks 17,200 20,923
Debtors 37,708 37,161
Cash at bank and in hand 22,373 8,236
--------- ---------
77,281 66,320
Creditors - amounts falling due within one year (39,664) (39,479)
--------- ---------
Net current assets 37,617 26,841
--------- ---------
Total assets less current liabilities 73,574 64,965
Creditors - amounts falling due after more than one year (1,198) (1,639)
Equity minority interests (578) (169)
--------- ---------
Net assets 71,798 63,157
--------- ---------
Called-up share capital 5,463 5,453
Reserves 66,335 57,704
--------- ---------
Equity shareholders' funds 71,798 63,157
--------- ---------
Reconciliation of Movement in Shareholders' Funds
For the year ended 31 October 2003
2003 2002
#'000 #'000
--------- ---------
Profit for the financial year 13,995 11,090
Dividends (5,110) (4,489)
--------- ---------
Retained profit for the financial year 8,885 6,601
Other recognised gains and losses relating to the year (461) (1,194)
New share capital subscribed 217 582
--------- ---------
Net increase in shareholders' funds 8,641 5,989
Opening shareholders' funds 63,157 57,168
--------- ---------
Closing shareholders' funds 71,798 63,157
--------- ---------
Consolidated Summary Cash Flow Statement
For the year ended 31 October 2003
2003 2002
#'000 #'000
Net cash inflow from operating activities 32,472 30,679
Returns on investments and servicing of finance (205) (905)
Taxation (5,156) (3,705)
Capital expenditure and financial investment (4,378) (3,631)
Acquisitions and disposals (179) (2,855)
Equity dividend paid (4,702) (3,982)
--------- ---------
Net cash inflow before financing 17,852 15,601
--------- ---------
Financing
Issue of ordinary share capital 217 582
Payment of loan notes (132) (2,432)
Capital element of finance leases (26) (146)
Bank loans due beyond one year - (9,538)
Bank loans due within one year (3,539) 8,240
--------- ---------
Net cash outflow from financing (3,480) (3,294)
--------- ---------
Increase in cash 14,372 12,307
--------- ---------
Notes to the Consolidated Summary Cash Flow Statement
(a) Reconciliation of operating profit to operating cash flows
2003 2002
#'000 #'000
--------- ---------
Operating profit 20,523 16,674
Depreciation and amortisation 4,489 4,957
Decrease in stocks * 3,521 4,324
(Increase)/decrease in debtors * (31) 5,670
Increase/(decrease) in creditors * 3,219 (1,153)
Non-cash items 751 207
--------- ---------
Net cash inflow from operating activities 32,472 30,679
--------- ---------
* Net of effect of change in exchange rates
(b) Analysis of changes in net debt
At At
31 October 31 October
2002 Cash Flow 2003
#'000 #'000 #'000
Cash at bank and in hand 8,236 14,137 22,373
Bank overdrafts (768) 235 (533)
---------
14,372
Debt due within one year (8,240) 3,539 (4,701)
Finance leases (net) (34) 26 (8)
--------- --------- ----------
(806) 17,937 17,131
--------- --------- ----------
2003 2002
#'000 #'000
-------- ----------
Increase in cash in the period 14,372 12,307
Cash outflow from movement in debt and lease financing 3,565 1,444
-------- ----------
Change in net funds arising from cash flow 17,937 13,751
Opening net debt (806) (14,557)
-------- ----------
Closing net funds/(debt) 17,131 (806)
-------- ----------
Statement of Total Recognised Gains and Losses
For the year ended 31 October 2003
2003 2002
#'000 #'000
---------- ---------
Profit for the financial year 13,995 11,090
---------- ---------
Currency translation differences on foreign (461) (1,194)
currency net investments
---------- ---------
Total gains and losses 13,534 9,896
since last annual report
---------- ---------
Notes
1. The information set out above does not constitute the Company's statutory
accounts for the years ended 31 October 2003 or 2002, but is derived from
those accounts, and is prepared on the basis of the accounting policies as
set out in the most recently published set of annual financial statements.
Statutory accounts for 2002 have been delivered to the Registrar of
Companies, and those for 2003 will be delivered following the Company's
Annual General Meeting. The auditors have reported on those accounts; their
report was unqualified and did not contain a statement under section 237(2)
or (3) of the Companies Act 1985.
2. The Directors recommend a final dividend of 3.09p per share (2002 - 2.68p)
for the year ended 31 October 2003. Subject to approval at the Annual
General Meeting, the final dividend will be paid on 7 April 2004 to
shareholders appearing on the Register at the close of business on 5 March
2004.
3. Earnings per share are calculated on the weighted average number of shares
in issue in each period. Underlying earnings per share are calculated by
dividing the profit on ordinary activities before goodwill amortisation by
the weighted average number of shares used in the basic earnings per share
calculation.
2003 2002
---------- ---------
Basic earnings per share (p) 13.03 10.39
Effects of goodwill amortisation (p) 0.57 0.55
---------- ---------
Underlying earnings per share (p) 13.60 10.94
---------- ---------
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GUUQCGUPCGQP