SCOTTISH-headquartered computer label manufacturer Donprint turned in a good performance last year which helped parent company Jarvis Porter to a 13% rise in pre-exceptional profits.
However, the Scottish operation has not been immune to the downturn in the world-wide personal computer industry. Although there are indications that growth may pick up later this year, lacklustre demand has led to lower year-on-year profits during the first two months of 1998.
The group, which makes value-added labels and packaging materials for the beauty, drinks and electronics sectors throughout the world, reported pre-tax profits of #14m for last year on turnover which was 6% higher at #101.2m.
While the strength of sterling knocked #400,000 off the bottom line, efficiency measures during the 12 months to February 28 contributed #1m in savings. Earnings advanced to 20p per share, while the total dividend has been set at 7.8p, compared to the previous year's 7.35p.
Chairman Paul Jarvis said the drinks and beverages division experienced mixed fortunes during the year, while demand from the health and beauty sector increased steadily. Improvements by the latter were attributed to the group's focus on supplying its customers on a pan-European basis.
However, it was the ''strong growth'' from computer and electronics division Donprint which made the biggest contribution.
Based in East Kilbride, Donprint strengthened its position last year with the July acquisition of Ireland's Industrial Print Group (IPG). Jarvis said the Irish operation, which contributed #1m to group profits last year, had been completely integrated and was providing new opportunities in the telecommunications industry.
But the combination of installing a facility in South Wales and the struggling fortunes of many computer manufacturers has affected Donprint. Setting up the factory, which cost #1m, has coincided with a downturn in demand from the sector.
''There is, however, evidence that growth in these markets will pick up later in the year,'' Jarvis said. ''As a result of the combination of these factors, after two months' group profits are below those achieved at the same stage last year.''
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