Domino Printing Sciences Share Discussion Threads

[jungle jim] 10/6/2005 13:07

I believe this is the rise up to the half-year results which should be out this month. They should be OK, the management know what they are doing in terms of cash management and the bottom line, which is what it's all about, really.

[angora7] 10/6/2005 12:22

Anybody got any theories on the recent rise?

[padi] 12/5/2005 17:54

Very tempted to pick up some more at this price. Seem to be just drifting lower on no news. Buying opportunity maybe? any views?

[jangaman] 09/4/2005 12:11

Think they are def' in play now!

[shuisky] 21/3/2005 15:41

well here's your dip.

Trading update was ok, though having held DNO for a few years, I can confidently say that they have a tendency to downplay statements and surprise on the upside.

It's interesting that the thread is titled the presumption that DNO could be a takeover target. I agree with this line of thinking. Linx was a good company, that happened to have some short term problems with it's Far Eastern operations, and the Americans moved in to buy Linx after the good ol City of London marked down the shareprice.

That's pretty much how I view DNO. It's silly for the market to take such a short term view of such high quality companies. They say that the legislative 'boost' in Europe is not here this time around, so the like-for-like comparisons with last year won't be as strong this year. No matter. The long term growth prospects look good, and cashflow is fantastic.

[jangaman] 19/3/2005 14:15

i'd say that the fundementals of this are of the highest quality... would be even better if they had a dip so i could pile in...

[cambium] 18/3/2005 11:05

all bodes well for the future

[cockneyrebel] 21/1/2005 15:52

been a bit of fund buying/selling the last couple of days, think that holds it back a bit myself.

CR

[jackrussel] 20/1/2005 13:07

banquet,

OK, come on, what is a double 6 type ?

I started this thread, and would like to know what's going on here :-)

[m.t.glass] 19/1/2005 22:40

"..I have you marked up on my card.."

I can't help thinking there is something vaguely wierd about people who keep track of other people in this way...

Still - takes all sorts ;o)


(PS: What am I listed as?)

[banquet] 19/1/2005 21:01

Cokney rebel- can I say you're getting a bit of a reputation as a ramper, turning up on threads that are doing well and posting constant dribble ramps. Not a very genuine way to behave imo - more like wanting to screw your fellow investor to make a personally gain. i thought you were a genuine type but not any more.

Still - if that's how you want to behave then fair enough but I have you marked up on my card as a potential double6 type and that's not a pleasant place to be bracketed imo.

Best wishes

banq

[cockneyrebel] 19/1/2005 11:34

Thanks Stillbroke - read that this morning and was just going to post it myself :-)

Bit of profit taking - has big upspikes tho so just needs a tip in the rags imo.

CR

[banquet] 19/1/2005 09:34

sold mine also. might go quiet for a while i feel. profit is profit and all that

[stillbroke] 19/1/2005 09:12

The phrase 'damning with faint praise' springs to mind.
Sold first thing. Good luck all holders.

[stillbroke] 19/1/2005 08:09

Telegraph

Brussels lays golden eggs for Domino
By Sophie Brodie (Filed: 19/01/2005)

New European legislation requiring best-before dates to appear on the region's eggs has helped deliver a 22pc increase in pre-tax profits at Domino Printing Sciences, the UK printer manufacturer.

Profits jumped to £24.7m for the year ending October 31, 2004, thanks to the new EU rules, stronger demand in the United States and Asia and further cost reductions.

The company, which makes printers of barcodes, best-before dates and tracking labels, saw turnover rise 8pc to £178.3m after accounting for adverse currency effects. Sales denoted in local currencies rose 13pc.

Domino increased its gross profit margin to 50pc, up from 48.9pc in 2003, despite spending 5pc of sales on research and development.

Peter Byrom, chairman, said: "Last year was another record year for Domino fuelled by strong organic sales growth and the acquisition of new businesses."

The company bought Wiedenbach, a German printer manufacturer and Purex, a UK fume extraction company. Nigel Bond, chief executive, said the company had no immediate plans to make further acquisitions but continued to look for ways to expand.

Sue Cox, analyst at ABN Amro, said: "This company is no Flash Harry but it is very well managed by a conservative management, which has ensured Domino has a strong position in markets such as China and Eastern Europe."

Domino's share price closed up 7 at 268p.

[sealed] 19/1/2005 07:50

Domino Printing Science

MANY companies can deflect currency concerns because the impact of shifting foreign exchange markets does no more than alter the numbers when they are translated into sterling for the purposes of the formal presentation of results. If goods and services are sold in the same currency zones as they are made, and financial obligations are balanced across geographies, the underlying effect is minimal.

Domino Printing Sciences, however, is not so lucky. Although it strives to buy as much raw material in the countries where it sells its products, there is only so much it can do. Profits at Domino are affected by currency movements and in the year to October 31 the impact was all bad.

It speaks volumes for the strength of the business, however, that it has been able to show impressive progress in spite of the currency bugbear. In constant currency terms, sales growth would have been 13 per cent. But actual sales growth of 8 per cent is perfectly respectable. Profits grew at three times that rate thanks to the implementation of operating efficiencies and the fact that a bigger cash balance meant that the firm earned more interest.

Domino has mined a rich seam of business opportunity in the past and is well set to continue the process. Manufacturing companies of all sorts want to identify individual products and the printing equipment supplied by Domino facilitates the wish. Some customers are obliged to identify products by dint of regulation.

The number of type of goods needing to be identified is growing. Sell-by dates on foodstuffs is staple fare for Domino but engineered goods and pharmaceuticals are among other items that need individual tagging. The number of countries where this sort of tagging is deemed appropriate, moreover, is also increasing.

Shares have climbed 44 per cent in the past 12 months as investors have learnt to appreciate the size of the market opportunity facing Domino. Shares now trade on a prospective p/e ratio of 15 and give a yield of 2.4 per cent. They look fully valued, but are worth holding.

[banquet] 19/1/2005 07:48

PE of 19 suggests 30% upside from here - in other words near 400p

[sealed] 19/1/2005 07:47

Domino Printing presses forward
By David Blackwell
Published: January 19 2005 02:00 | Last updated: January 19 2005 02:00

Dutch egg farmers buying continuous ink-jet printers to mark their produce in compliance with the latest European legislation helped Domino Printing Sciences lift annual sales by 8 per cent.


The requirement for a freshness date on eggs was just one of the factors behind a 23 per cent rise in sales of continuous ink-jet printers. Others included good market conditions in the US, eastern Europe, India and China.

Nigel Bond, managing director, said the market for continuous ink-jet printers had accelerated from expected growth of 4 to 5 per cent a year.

While the market had probably grown at a double-digit rate, the performance showed Domino was increasing its share.

However, downward pressure on prices, coupled with the weak dollar, held total group sales at £178.3m (£164.4m). Profits before a goodwill charge of £900,000 and interest earned of £240,000 were £25.4m, and would have been £2.1m higher at constant exchange rates.

The pre-tax line for the year to October 31 was £24.7m, up from £20.3m.

Mr Bond said the sales growth, coupled with acquisitions and "great growth in equipment volumes means we have got to say it was a good year". In spite of the challenge of the weak dollar, the company succeeded in lifting gross margins by just over a percentage point to 50 per cent.

Earnings per share rose from 13.03p to 15.96p. The proposed final dividend of 3.7p lifts the pay-out for the year by 20 per cent to 5.7p.

FT Comment

* The shares closed up7½p at a 12-month high of 268½p - reflecting Domino's success in countering the currency impact. It is not just the core continuous ink-jet printing division that is performing well. The commercial printing division returned to the black for the first time in four years, the outer case coding division is attracting strong customers and volume sales of laser printers were up 35 per cent, helped by a deal to supply equipment to Anheuser Busch. The sale to the US brewing giant was against competition from Danaher, the US conglomerate buying Linx Printing Technologies, Domino's main rival in the UK. Forecast profits of more than £27m this year put the shares on a prospective multiple of 15. The fundamental reasons for holding the stock are underlined by the multiple of 19 Danaher is willing to pay for Linx.

[lossman] 18/1/2005 16:22

Excellent article CR.

GHA
KD

[lossman] 18/1/2005 16:17

Common sense, combined with potential and today's results would tell you that 300p is realistic.

However, it may take longer than it should to get there if sellers move in at a level before then.

Hi CR. Any news on CCN recently? DNO has alot more going for it than that more high risk company?

Nice to see a re-trace today, and there is no way all the ADVFN reported sells are actually sells, following the rapid rise this morning - but then you all knew that.

Not surprised if DNO retraces tomorrow before move up to 300p

GHA
KD

[cockneyrebel] 18/1/2005 13:37

Good article imo.

Thanks Hedger :-)

CR

[banquet] 18/1/2005 13:02

dno new high, want to see these over 300p shortly

[hedger] 18/1/2005 12:35

CR you have called this company absolutely correctly. Yet another one! You are a star sir ( and a rich one at that on recent past performance ). I owe you a drink for this one --- as well as CKN and MPH. Well done !
Hedger