The company clocked up almost £24m pre-tax profit in the half year to 30 April 2010 and revenue, which stood at nearly £145m, was 17% higher than a year ago.

Chairman Peter Byrom said: "The improvement in market conditions for our products, first seen in the latter part of 2009, has continued through to 30 April."

According to the group, kit, consumables and inks sold well, with equipment volumes up a third and demand for inks and consumables reaching higher than pre-recession levels.

Group managing director Nigel Bond said: "Things picked up in late August 2009. Business customers have capital budgets again, so we are selling more equipment.

"And customers are using the kit so consumables sales, maintenance and service are more in demand. It's just down to that one word, 'recovery'."

Domino Printing also bumped up investment in research and development by a fifth against the first half last year, Byrom said.

"We will extend this further into the second half of the year as we launch a series of new products over the next 12 months," he explained.

This will include a new digital press targeted at colour label printing and an extension to the company's A-Series continuous inkjet product range.

Byrom added: "As markets emerge from recession, we will increase our capacity so we can benefit from additional business opportunities available.

"We remain cautious about the European economic outlook but see positive signs throughout the Americas and Asia. The board is confident in the group's prospects."