The Cambridge-based company experienced a 5% increase in sales to £314.1m while underlying pre-tax profits were up 9% from £54.5m to £59.4m.

In addition, net cash flow from operating activities before tax was £51.1m while underlying return on sales increased 0.7% from 18.2% to 18.9%.

Peter Byrom, chairman at Domino Printing Sciences, said the group delivered sales growth and record profit in a year of mixed macroeconomic conditions.

He added: "Our businesses in the developing markets of Europe and in the Middle East, Africa and Asia all reported strong growth.

"Market conditions elsewhere were generally much tougher and while the Group achieved good growth in the UK and Germany, sales in other parts of Europe and in North America were below last year's levels."

The manufacturer has invested £15.3m into its research and development operation during 2011, representative of 5% of sales, which the company said will enable it to expand its product offering across the board.

In addition to growth in sales and profits, the company said it has added 60 positions in its sales, service and marketing functions during 2011.

It has also applied for planning permission to extend its main manufacturing facility in Cambridge, the outcome of which will be known in 2012.

Domino said it will increase its dividends for the 26th consecutive year since floating on the London Stock Exchange and proposes a 20% increase to 18.75p per share.