Domino buys PostJet as half-year profits drop

Domino Printing Sciences has acquired inkjet mailing equipment manufacturer PostJet after revealing a 3% drop in sales for the six months to 30 April 2012.

Acquired for an initial £6.5m, PostJet will continue to run as a separate business within the group’s Digital Print business unit.

Net cash from Domino's resources will be paid to directors Adrian Moss, David Daniels and Raymond Paris (the latter retires at the end of 2012).

According to Nigel Bond, group managing director of Domino Printing Sciences, PostJet has been successful at gaining market share through offering high performing, cost effective coding solutions. 

He said: "The global postal market is large and while postal volumes are in decline, there is still a significant opportunity to grow share across a range of applications. 

"PostJet has leading technology in the sector and will further strengthen Domino's digital printing capability."

Sales at Domino Printing Sciences declined 3% from £156.4m in the half-year to 30 April 2011 to £151m in the six months to 30 April 2012.

Profit before tax in those six months came in at £24.7m, which represented a 9% drop on £27.1m recorded in the same period in 2011. After tax, the company's profits were £18.2m.

Equipment revenues were down 4% year-on-year with a strong showing in its laser and thermal transfer overprinting and K600i digital press technologies countering a decline in traditional machines.

Domino chairman Peter Byrom said economic conditions and general uncertainty in short-term visibility led to customers delaying or deferring new investments.

"There is general uncertainty about global economic conditions and we remain cautious about immediate prospects for market recovery," he added.

Consumables revenues were at the same level as the prior year while spares and service revenues were down 7%. At present, approximately 42% of the group's turnover comes from Europe, 34% in Asia and Africa and 24% from the Americas.

"Our expectation is that sales for the full year will be close to those achieved last year.  We remain confident in the quality of our business and in the longer-term prospects for growth," Byrom added.

Earlier this year, Domino Printing Sciences made a $24m (£15m) paper profit on its investment in US-based egg monitoring firm TEN Media after the venture was valued at $500m by a new investor.