Statement from the Chairman, Mr Peter Byrom - December 2007

Operating results 

I am delighted to report another year of record results for Domino Printing Sciences.
Sales increased by 11 per cent to £231.5 million, profit before tax increased by 12 per cent to £31.8 million and underlying earnings per share increased by 3 per cent to 21.04p.

We have proposed dividends of 9.86 pence per share, an increase of 20 per cent.

The acquisitions of Easyprint and Mectec in 2006 have respectively added capabilities in Thermal Transfer Overprinting (‘TTO’) and Print and Apply Label Machinery (‘PALM’).  We are progressively investing internally in the global distribution network for their products. Additionally, during the year we acquired On-Line Coding, the UK distributor for Easyprint.

We continue to invest in Research and Development and increased expenditure to £11.3 million, equivalent to 5 per cent of sales. The plus range of products was successfully launched during the year. Programmes are in place to introduce new products and enhancements of existing products during the current year.

The continued success of the Group is a tribute to the effort and enthusiasm of our employees across the globe and the Group’s commitment to being a trusted and reliable partner to the companies we serve both locally and globally.

Outlook

We have a strong global business with an extensive sales and service network serving our customers worldwide who are spread across multiple market sectors. We have a large installed base of printers using our fluids, spare parts and services. Legislation mandates and standards which demand identification of products drive demand for our printers and services. Whilst we will not be immune from slowing economic growth rates amongst major world economies and the impact this may have on our customers’ investment plans and production outputs, the fundamental strength and diversity of our business gives us confidence about the future.

The business is well positioned for further growth. The core product range has been refreshed and enhanced. Legislation and activity levels support ongoing growth of our Integrated Solutions business. Our PALM and TTO businesses are expected to contribute positively to profits in 2008. We have good order books going into the New Year.

Peter Byrom
Chairman

11 December 2007