The sharp fall was despite the firm reporting a return to profitability and an increase in sales.

Chief executive Nigel Bond said the fall in share price was due to the firm’s cautious forecast for 2015, which it expects to be “broadly similar to 2014” due to increased R&D spending, particularly in the N-Series inkjet label press, and price pressure in Asia.

It reported a 7% growth in sales to £173.8m and a return to profitability for its first-half 2014 results to 30 April 2014. Pre-tax profits were £25.9m, compared to a loss of £3.8m in H1 2013, which was due to a £27m write-down of its investment in US egg coding firm TEN Media.

Overall growth was 11% before the impact of currencies with a 14% increase in equipment revenue.

In it’s half-yearly report Domino said that it had installed eight of its N-Series inkjet colour label presses and had confirmed orders for eight more in the second half. Bond clarified that, with four and a half months of the second half to go, the firm was confident that it would reach its target of 25 orders by the end of the fiscal year. 

“As we’ve gone into the label business we’ve been learning along the way,” said Bond.

“We believe we’ve got the best product in the market but we need to continue to invest in R&D to maintain that leadership. In 2014 we will invest £18m-£20m and in 2015 we will increase that and use the additional resources to keep at the forefront of the market.”

He declined to reveal further details of the areas that the firm was looking at to enhance the products.

Domino’s inkjet press division Graph-Tech continued to make progress with its other product the Mono-Cube continuous-feed black & white inkjet printer.

“We’re looking to expand the channel and drive growth now that our initial installations have confirmed that it meets a market requirement.”