Peter Byrom, Chairman, commented “The Group has made good progress in sales in 2013 delivering revenue growth of 8 per cent.  Significant investment has been made in Research and Development and in building capability in our digital printing business and this has meant profits have remained broadly at prior year levels.

Underlying pre-tax profits were £53.0 million compared to £53.7 million last year. Action has been taken to direct investment to areas of the business with the strongest growth potential.  Strong cash flow has been maintained throughout the year. Net cash inflow from operating activities before tax was £54.9 million.  The Board has declared an increase in the annual dividend of 5 per cent.

“Our businesses in the USA, Germany and China, the largest markets for the Group, all reported double digit sales growth.  Market conditions in these territories were improved during 2013 when compared to the previous year but in some parts of the world we still see reduced investment and a more cautious attitude among customers. We have been pleased with the performance of our new products, and in particular the achievement of our target of ten digital label press installations over the course of the year.  Digital printing is an area in which we are investing and we expect to see further progress during 2014.

“Investment in Research and Development was increased to £19.5 million.  In addition to the introduction of a new colour digital label press in September 2013, the N610i, we launched a number of other printers and fluids products over the course of the year.  We continue to progress the development of a new generation of printers based upon common technology architecture.

“In our interim results published in June we reported that progress in TEN Media with its compliance systems was not proceeding as anticipated and we had written down the value of our holding in the company to $5 million.  There has been no significant progress over the past six months and we have therefore written the value down to nil, bringing the total impact on profit for the year to £30.3 million.  Domino retains exclusive supply rights under contracts held with TEN Media, but there is no indication of when or whether the company will commence roll-out of its systems.

“Our recent order intake provides tentative signs that market conditions are improving.  While we remain cautious about the prospects for a full recovery to historic levels of global GDP growth, we are optimistic that our investments in new products and capabilities coupled with emerging market opportunities will fuel stronger organic sales growth in 2014.   We are continuing to invest in the business, improving our prospects for the future.”