Slump in profits knocks Domino Printing shares

Shares in Domino Printing Sciences hit a five-year low yesterday as the Cambridge-based ink jet printer maker reported lower profits and warned of continuing trading problems in the US.

The 30p drop in its share price to 360p completed a miserable year for Domino, which is best known for making machines that squirt sell-by dates on food products.

The company has been plagued by a series of profit warnings and downgrades after it emerged last year that dud ink was congealing in its printers and clogging the jets.

Domino yesterday highlighted the continued weakness of capital equipment spending in the US, especially in sales of high-value printers into the commercial printing market.

It also reported a drop in pre-tax profits for the six months to April to pounds 4m from pounds 4.7m on sales 3 cent higher at pounds 51.6m. Earnings per share fell by a quarter to 8.63p though the dividend was increased by 8 per cent to 4p.