Domino profit falls but group remains confident

Inkjet developer Domino Printing Sciences has raised its dividend and said it remained "confident in the future of the group", despite a 28% fall in pre-tax profit.

The £11.4m profit came on the back of a 1% dip in turnover to £124.3m for the first six months of the financial year, and is largely attributable to £2.6m in restructuring costs.

Chairman Peter Byrom said: "The group is well placed to meet the demands of the exceptional market conditions."

Domino said customers had cut back on capital investment programmes during the six months to 30 April 2009.

Margins across the group fell slightly to 46.5% from 47.7% due to unfavourable foreign exchange movement.

The company has mitigated this decline over the year with the consolidation of its California and Denmark sites into its UK operation, which it would result in savings of £10m a year.

Earlier in the year, the company took over Portuguese distributor Labeljet and its subsidiary Marque TDI.