The company cited the effects of the economic slowdown, which it claimed had affected some the manufacturer's key operating areas, including the automotive and electronics sectors.

The company attributed the like-for-like 18% slump in sales to a cutting back on investments and the deferral of equipment purchases.

Domino also recorded a 12% drop in its fluids and consumables business. The company has also completed its cost reduction programme, announced last year, which involved the culling of 70 UK jobs.

But the group, which had net cash at the end of February of £9m, said that it is well-placed to meet current market demands despite an uncertain economic outlook.

Late last year, Domino predicted a "challenging 2009" after breaking the £250m mark for the first time in its year-ending results.

The company's share price is currently 167p.

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Domino cites 'difficult trading' for fall in like-for-like sales