The Cambridge-based firm posted a 12% rise in profit before tax to £31.8m for the full-year ended 31 October, while operating profit was also up 12% to £31.5m. This was off the back of £231.5m in revenue, up 11% from £208.4m in 2006.

Group managing director Nigel Bond said: "The overall conclusion for 2007 is a year of good progress. We have integrated the 2006 acquisitions successfully, and our acquisitions from 2005 and earlier all continue to perform well."

Chairman Peter Byrom said currency exchange fluctuations damaged the business and that revenue growth was 14% on constant exchange rates.

"We made two further strategic acquisitions in the year," Byrom said. "Collectively, the acquisitions that we have made over the last four years continue to perform well and meet expectations.

"To capitalise on the opportunities afforded by this substantial expansion in our product range, we have invested in additional sales, marketing and support resources."

This year's acquisitions included On-Line Coding Limited, the UK distributor of Domino's thermal transfer overprinting business Easyprint, in May, and German software house Control Information Technology in October.

In November, just after year-end, the company bought the assets and trade of Bopack, the former Domino distributor in Belgium and Luxembourg, and will now sell direct in this market.

Domino has boosted its spending on research and development in the past two years and it now stands at £11.3m or 5% or revenue.