Domino is looking forward to a better year in 2014 after closing the book on its failed investment in egg coding venture Ten Media.
The Cambridge headquartered inkjet and coding specialist posted sales up 7.6% to £335.7m in the financial year ended 31 October.
After writing off most of its $50m (£30.4m) investment in Ten at the half-year, it has now done the same with the remaining $5m, resulting in a 67% drop in year-end pre-tax profits to £17.7m.
Group managing director Nigel Bond described it as “the major disappointment of the year.”
“While I am satisfied that Domino has done all it can to support the programme, matters beyond our control have continued to frustrate progress,” he stated.
With the Ten issues behind it, the firm said it was optimistic about future prospects.
Bond said Domino had achieved its target of installing 10 inkjet label presses in 2013, and, with the new N610i version launched at Labelexpo in September, was now targeting a further 25 installs in 2014.
The group also spent £19.5m on R&D during the period, including new coding capability and inks to allow its products to meet the Falsified Medicines Directive, described as “a significant growth opportunity for the group” in the future.
Following major investments in its manufacturing operations to improved productivity and efficiencies, Bond has set a longer-term target to make a 19% return on sales, something it last achieved in 2011.
The firm also spent £3.6m on restructuring and redundancy costs as it focused its efforts on business areas with the greatest potential opportunity.
Domino’s share price fell 7.5p to 702.5p in early trading after the results announcement (52-week high: 717p, low: 560p).