RNS Number : 9334K

Domino's Pizza UK & IRL PLC

25 July 2011

25 July 2011

DOMINO'S PIZZA UK & IRL plc

INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 JUNE 2011

IT'S WHAT WE DO

Domino's Pizza UK & IRL plc ("Domino's", the "Company" or the "Group"), the leading pizza delivery company in the UK and Ireland, announces its results for the 26 weeks ended 26 June 2011.

Financial Highlights

-- System sales(1) increased 9.0% to GBP258.4m (2010: GBP237.1m)

-- Profit before tax(2) increased 14.8% to GBP20.1m (2010: GBP17.5m). Profit before tax after exceptional items was GBP19.0m (2010: GBP17.0m)

-- Operating margin(2) of 19.8% (2010: 19.1%)

-- Like-for-like sales(3) in 607 mature stores increased 2.4% (2010: 13.7% in 553 stores)

o Like-for-like sales in the UK increased 3.4% (2010: 16.9%)

o Like-for-like sales in the Republic of Ireland decreased by 8.4% (2010: (10.5%))

-- Earnings per share(2) :

o Basic earnings per share increased 14.4% to 9.20p (2010: 8.04p)

o Diluted earnings per share increased 15.5% to 9.11p (2010: 7.89p)

-- Total dividend increased 22.2% to 5.50p per share (2010: 4.50p)

-- 22 new stores opened in the period (2010: 19) with one closure (2010: nil) resulting in a total of 688 stores as at 26 June 2011 (2010: 627). On track for 60 openings this year (2010: 57)

-- Growth in e-commerce business of 50.9% (2010: 61.4%), resulting in total online sales of GBP85.0m (2010: GBP56.9m). Online sales accounted for 41.9% of UK delivered sales (2010: 32.7%) during the period

-- Strong balance sheet with adjusted net debt(4) to annualised EBITDA of only 0.4:1 (2010: 0.5:1)

-- Acquired 75% interest in the master franchise for Domino's Pizza in Germany at a cost of GBP8.6m

-- Over 650 new jobs created in franchisee stores, expected to rise to around 1,800 by the year end.

Commenting on the results Chief Executive Officer, Chris Moore, said:

"I am delighted to announce a good set of results in what can only be described as a very tough operating climate. It is a real achievement to deliver like-for-like sales growth of 2.4% across 607 stores against a comparative figure of 13.7% (553 stores) and a VAT rise of 2.5%.

"The coming months provide fantastic opportunities for the Company. While the first half of the year has been tough, we are delighted that we are still showing good growth in the UK and the latter half of the year comes with lower comparatives (9.9% for Q3 2010 against 17.2% for Q2 2010) so we are confident we will see our like-for-like sales grow more strongly in the next 26 weeks. Our marketing spend to the year end will be three times the amount for the second half of 2010 and, combined with some great new products and a heavyweight brand campaign in the coming months, we are very excited about the future."

1 Sales made by franchisees from all stores to the public

2 Pre-exceptional items

3 Like-for-like sales are sales in stores that were open before 27 December 2009

4 Excludes Domino's Leasing Limited and Domino's Pizza Germany's loans

Quite a range today (52p) for the brave.

was briefly tempted this morning when i saw sp -21, but by the time i got back, far too late

Likewise Mr.C. Took a little short instead.

Can only see upside here, until interim ex divi date 03/08, interim divi payment date 02/09. Then may test the highs again but on my watch list for a stonking short, great results but indicators way overbought now so surely profit taking will kick in after divi paid out but wtfdik?

Tipped in Shares magazine today, citing their sponsorship of Red or Black (Simon Cowell's new television show).
Shares magazine share tips

These tips are totally unreliable.

You don't rate Shares magazine share tips then hlyeo98?

I have made good money with Shares mag tips, Autonomy 2005 bought at 201 still have.

I guess it's like any share tips featured in magazine and newspapers. There will be good tips and bad tips.

I've followed a few that ended up being good, and some that ended up being bad.
I suppose the important thing is that you carry out your own research and don't just buy what they say to buy, and sell what they say to sell without forming your own opinion first.

Shares Mag is a very good platform for ideas, imo. Lots of investment suggestions particularly for companies which wouldn't have been on my radar, but the onus is on the individual to do more research and then make an informed decision. Everyone gets it wrong sometimes, even Warren B.

Have to agree with HARRYSCAT. Shares magazine is a useful starting point, but you have to put in your own legwork...

All these tips usually mean the kiss of death, worth a punt though left Limit Buy @ 502.0 (spread bet) initial target 520.0 if triggered stop 495.0

Dominos have held up remarkably well.

Interim Management Statement.

System sales for the period were up by 9.8% to GBP127.0m (2010: GBP115.7m) with year to date system sales up by 9.2% to GBP385.4m (2010: GBP352.8m). Despite the challenging economic climate, like-for-like sales for the period continued to grow, increasing by 3.9% in 605 mature stores (2010: 9.9% in 553 mature stores). In the UK only, like-for-like sales for the period are up by 4.1% (2010: 11.5%), while the equivalent figure for the Republic of Ireland is 1.8% (2010: -4.7%). Trading remains tough in the Republic of Ireland, where like-for-like sales for the period, in Euros, are down by 4.4% (2010: -0.5%). Group like-for-like sales for the year to date have risen by 2.9% (2010: 12.5%).

Down 5.3% today even with good results. Overpriced imho 350p more like good entry price

You are too harsh Bernard! 380 which has been resistance would be a snip of an entry point...think of all those long Winter nights and the Strictly type programme schedule! Doubt you will be able to buy that low though.

At the end of the day their product is shite.

I agree with you on that but it is the same product that was for sale when the shares were sub 70p when I started the thread! Someone must buy them ;-)

Can only assume their customers also eat Mc Donalds, and those stinking kebabs on a weekend night after having a skinfull. Chav food.