Domino expects food safety legislation to open up new opportunities
In April, the coding and printing specialist partnered with NewMarket Impressions to form a new company, TEN Media, which is to specialise in coding equipment that allows full traceability of fresh produce in compliance with new legislation.
Domino has invested $50m for a 15 per cent share in TEN Media. Under the agreement, it will also be the sole supplier of both laser and ink jet coding equipment, fluids and aftermarket services to the business.
First sales expected next year
Updating the markets on its future plans for TEN Media this week, Domino said TEN Media is expected to make the first imprint on its income sheet in 2012.
“We are excited by the potential opportunities developing through TEN Media and expect first sales to take place next year. We believe the development of food safety legislation will continue and that our coding solutions will remain an integral part of necessary compliance systems.”
TEN Media will initially focus on the US egg market but Domino expects that the business will expand to other markets in time.
Domino chairman Peter Byrom said many countries are introducing or considering new food safety legislation and the vision for TEN Media is to help companies keep up with these changes.
He said the aim is for the business to go beyond the US egg market and provide “compliance systems for use across the fresh produce sector.”
Half year results
Byrom made the comments as Domino published its financial results for the six months, ending 30 April. Revenue was up 8 per cent on last year to £156.4m while profit before tax rose 13 per cent to £27.1m.
The introduction of new products at Emballage in Paris last year and in the first quarter this year helped to boost the results. And Domino said volumes of our newer technology products (thermal transfer and thermal inkjet) were both significantly ahead of last year.
