The Investment Column: Domino
Tuesday 22 June 1999
One reason for the re-rating is analysts' upgrades in January after bullish comments by the company. But since then, Domino has proved it is stealing a march on its main rival, GEC, by earning a reputation for continuous innovation. A year ago, only one of its wide product portfolio was on the market.
Domino supplies printing equipment that embosses sell-by dates on plastic bottles and prints unique bingo numbers in newspapers. The emphasis on new technology means its customers enjoy greater reliability, while Domino itself enjoys fatter margins. Operating profits jumped 28 per cent in the half-year to pounds 5.3m on the back of sales up only 7 per cent.
Although its UK sales slumped as manufacturing activity declined, Domino is seeing recovery in its Asian markets. Demand for its magazine printers is also booming in France and Finland.
DKB expects pre-tax profit of pounds 15.3m for the full year and earnings of 44.5p. Given the sector is estimated to be on a forward multiple of 17.7, a fair value for the shares would be 788p, making them a strong buy.
- 2 General Election 2015: 14-year-old boy asks Nick Clegg – 'can you kill Katie Hopkins?'
- 3 University student in court for allegedly covering housemates' food in window cleaner and spit
- 4 Ryan Gosling posts tribute to 'Ryan Gosling Won't Eat His Cereal' creator Ryan McHenry
Italian police 'reveal' what Jesus looked like as a young boy
Mysterious 'X-Files' sounds heard miles above the Earth
Garland shooting: Isis claims attack on Prophet Mohamed cartoon contest in Texas as its first action on US soil
Met Gala 2015: Beyoncé manages to out-skimp Rihanna, Miley and Kim Kardashian combined with near-naked ensemble
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
General election live: SNP suspends two members for disrupting Labour rally
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...