Shares in Domino Printing were up nearly six per cent in morning trading after the company reported that it had more than doubled its profits in the half year ended 30 April.

The group said its revenue in the period had increased 17 per cent to £144.8 million, while pre-tax profit rose 110 per cent to £23.9 million.

In addition Domino said that it would be raising its interim dividend by 20 per cent to 5.48 pence per share.

During the period Domino said that equipment volumes were up 30 per cent from the previous year while demand for inks and consumables was now "ahead of pre-recession levels".

The company said that it had increased the amount it spent on developing new products by 20 per cent and reported net cash at the end of the period as being £35.4 million.

Peter Byrom, Chairman of Domino Printing, said, "The improvement in market conditions for our products, which we first saw in the latter part of 2009, has continued through to 30 April 2010, the period covered by this statement. Our customers have increased their capital expenditure budgets, as a result demand for our equipment has been strong, and volumes grew by over 30 per cent compared to the corresponding period last year. Demand for our after market products has also grown significantly as customers' production output levels have improved.

"As markets emerge from recession, we will increase our capacity so that we can benefit from the additional business opportunities available. We have started to increase our investment in the selling, manufacturing and engineering capacity of the business, targeted towards expanding our capability to exploit new products and improve our share in growth markets. We remain cautious about the European economic outlook but are seeing positive signs throughout the Americas and Asia.

"The Board remains confident in the prospects for the Group."

By 09:35 shares in Domino Printing were up 5.55 per cent to 474.00 pence per share.