Reuters: Hot Stocks: UPDATE 1-Domino Printing profit falls, writes down TEN Media investment

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UPDATE 1-Domino Printing profit falls, writes down TEN Media investment Jun 25th 2013, 10:00 Tue Jun 25, 2013 6:00am EDT * First-half profit falls 3 pct, sales rise 7 pct * Company writes down investment in TEN Media * Shares fall as much as 6 pct (Adds analyst quote, details, background; updates share movement) June 25 (Reuters) - Barcode-printer maker Domino Printing Sciences Plc reported a 3 percent fall in first-half profit as selling and distribution costs rose and it wrote down the value of its investment in TEN Media LLC to 10 percent of the original cost. Shares in the company, which makes printers to stamp barcodes and expiry dates on food, beverage cans and other products, fell as much as 6 percent in early trading on the London Stock Exchange on Tuesday. Domino Printing paid $50 million last year for a 15 percent stake in U.S.-based TEN Media, whose technology marks eggshells with information such as size, grade and packing date. "TEN Media has not yet raised the new finance necessary to meet its anticipated capital needs," Domino said in a statement. "At this stage we have no expectation of revenues associated with the supply of our coding products and services in the near future." Domino Printing said in March that it did not intend to invest further in the company, which has been facing compliance and operational issues that have delayed the rollout of its technology. "While TEN has demonstrated that it can meet the operational requirements of its supply arrangement, there is no certainty that it will have sufficient capital to commercialise its systems," Numis Securities analyst Scott Cagehin said in a note. Domino Printing said its underlying pretax profit fell to 25 million pounds ($38.5 million) in the six months ended April 30, from 25.7 million pounds a year earlier. Sales rose 7 percent to 161.9 million pounds, helped by a strong performance in Asia, the United States and Germany. Sales in Europe, which accounts for 41 percent of revenue, rose 5 percent. "There continues to be uncertainty in Europe and we remain cautious about markets in this region," the company said. Selling and distribution costs increased 15 percent to about 31 million pounds in the first half. Domino Printing shares were down 3.3 percent at 581.3 pence at 0958 GMT. ($1 = 0.6495 British pounds) (Reporting by Tasim Zahid in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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