* Says 2015 results could be similar to current year
* Faces pricing pressure in Asia, other developing mkts
* Shares fall as much as 14.2 pct
(Adds comments from managing director and analyst, details,
background, share movement)
By Esha Vaish
June 24 Barcode-printer maker Domino Printing
Sciences Plc cautioned that pricing pressure in Asia
and other developing markets coupled with increased research and
development expenses would weigh on earnings for the next year.
Shares in the company slumped more than 14 percent, making
them the top percentage losers on the London Stock Exchange on
The company, which makes printers to stamp barcodes and
expiry dates on food items, beverage cans and medicines, said
results for the next financial year ending October 2015 could be
"broadly similar" to that of this year. It said it was on track
to meet market expectations for the current year.
Analysts were expecting a pretax profit of 54 million pounds
($92 million) on revenue of 335.12 million pounds for the
current financial year, according to Thomson Reuters I/B/E/S.
"(When) we talk about Asia and developing markets, there is
a bit of a land grab going on from the competition to gain share
in these countries," Managing Director Nigel Bond told Reuters.
Bond said U.S. firm Dover Corp's rival product
'markem-imaje' and Danaher's 'videojet' were being
aggressively priced in Asia.
"These are the countries, the big volume markets, where
because of the strength of the encompass, there is some
increased price activity going on at the current time."
The profit warning prompted Numis Securities analysts to
reduce their earnings forecast for Domino Printing's next
financial year by 5 percent.
CHINA, INDIA VOLUMES SURGE
Domino Printing, whose unijet printers have been used to
print numbers on bingo tickets for over three decades, said
despite pricing pressures in developing markets, increased
volume sales in China and India brought the company to shore.
The company said new product launches and a pickup in sales
in its European business helped underlying pretax profit jump 10
percent to 27.5 million pounds for the six months ended April
30. Revenue grew by 7.4 percent to 173.8 million pounds.
Excluding the impact of currency translations, European
sales increased by 13 percent, while demand from China and India
helped its Asia business clock sales growth of 12 percent.
A slump in European markets, which account for about 43
percent of its turnover, has been easing with Domino Printing
saying that the number of customers looking to invest in larger
coding projects had increased significantly compared to the past
Bond said while the company's German arm had continued to
demonstrate strength, Mediterranean countries, which had
"suffered the most over the recession", were boosting its
regional revenue contribution.
He named UK, France, Spain, Portugal and Italy as countries
where trading conditions were improving.
The Cambridge, England-headquartered company raised its
interim dividend to 7.98 pence per share from 7.60 pence.
The FTSE-250 component, which hit a life-high of 880.50
pence on Jan. 17, has since lost about 13 percent of its value
to Monday's close.
Shares in Domino Printing were down 13.8 percent at 636.38
pence per share at 0915 GMT.
($1 = 0.5880 British Pounds)
(Reporting by Esha Vaish in Bangalore; Editing by Gopakumar