We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Pizzaexpress | PIZ | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | - |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| Top Posts |
|---|
Posted at 06/4/2003 10:28 by l2e ovens getting hot...who will take away the piz? |
Posted at 20/3/2003 16:49 by kasg Offer update - offer extended for one week - Venice Bidder controls only 14.4%See |
Posted at 14/3/2003 19:56 by daytona2 Latest Analyst Investor bulletin from www.analystinvestor.PizzaExpress plc Bulletin No. 1 Friday 14th March 2003 The first closing date of Venice Bidder's offer for PizzaExpress plc is Thursday, 20th March. The stockmarket is saying that the bid of 367p per share (equating to a value of approximately £263m for the entire business) is not going to succeed, although the market price has been weakening over the past few days. There has been speculation in the press that Nando's and its backers are planning to make a bid for the company at around 387p per share. In our view, neither of these approaches remotely reflects the true economic value of the company and they should be rejected by all share-owners out of hand. We have made our position on value-maximisation crystal clear. We favour a substantial share buy-back, we want the business to continue to be run by the present managers, a new management incentive scheme implemented, the resignation of the non-executive directors and the appointment of a new heavyweight chairman. We plan to examine aspects of the PizzaExpress story each day now in the run up to the first closing date of Venice Bidder's offer. There are a number of serious misconceptions about the business that are based on unsubstantiated opinion. These need to be corrected by fact. In addition, investors' and press commentators' attention needs to be drawn to a number of what we believe to be totally unacceptable aspects of the PizzaExpress bid saga since this current phase began on 16th December 2002. Our first task is to refute the frequently used description of PizzaExpress as 'beleaguered' 'struggling' and 'underperforming'. You would think, reading the financial press, that this is a basket case whose only future lies in a rescue bid. This is abject nonsense. Let's look at the reality: · In the year ended 30th June 2002, the UK and Ireland pizza restaurant chain generated revenue of £195.2m and operating profits of £40.1m. That represents an operating margin of 20.5% - down from the 24% of 2001, but still a well-above-average performance. Of the 300 restaurants open at the 2002 year-end, 27 were opened during the year and would, inevitably, have generated a below average turnover and operating profit. · Reported profits after tax in 2002 were £25.6m. This still represents a 16% return on average shareholders funds adjusted for historic goodwill written off. · At the 2002 balance sheet date, the company had cash of £20.8m and no debt. Free cash generation was over £6m, even after capital expenditure of £32.7m. · In 2002, the Sunday Times named PizzaExpress as one of the top 100 companies in the country to work for, the only restaurant operator to make it onto the list. · In the 6 months to 31st December 2002, the UK and Ireland pizza restaurant chain generated revenue of £100.2m and operating profits of £17.1m, reflecting an operating margin of 17.1%. The adjusted return on equity in a poor half was 13.4%. · At 31st December 2002, the company had cash of £17.8m and no debt. · The interim dividend was increased by 20%. Does this sound like a struggling or beleaguered business to you? We run a very detailed operating model of the UK pizza restaurant business. Our model splits the chain into restaurants by age: (a) those over 15 years, (b) those aged between 10-15 years, (c) those aged between 2-10 years, and (d) those under 2 years. The older restaurants - those over 10 years old - are under income and margin pressure, but they are neither struggling nor losing money. The 37 UK pizza restaurants that are more than 15-years old are located mainly in and around London. The first PizzaExpress was opened in Wardour Street in 1965 and until Kingston opened in 1976 some 11 years later, all openings were in London with the exception of St. Helier in Jersey, which was opened in 1970. As a group, these are the most prolific restaurants in the chain. On our model, the average revenue of these mature restaurants was around £1.02m in 2002 and their average operating profits were around £290,000, reflecting a very high operating margin of 28.2%. We are projecting the like-for-like revenue of these units will decline by 10% in 2003 to some £930,000 with average operating profits at £250,000. So, a £93,000 reduction in sales causes a £40,000 drop in profits – or a fall of 13.8%. Put another way, 43p of operating profit is lost for every £1 drop in sales. The refurbishment programme, which is underway in 140 out of 311 restaurants, aims to restore those lost sales. Once those revenues are restored, profits will be restored disproportionately. (The ages of the UK restaurants are difficult for an outsider to pinpoint precisely. Only 16 restaurants originally opened by the company were more that 15-years old as at 30th June 2002. However, 32 franchised restaurants were bought in by the company on 11th November 1996, many of which had opened their doors before June 1987. We do not have precise opening dates for these.) These 15-year old plus restaurants are a very material part of the overall group revenue and profit totals. On our estimates, these 37 restaurants (12% by number at that time) contributed £38m of revenue (19%) and £10.7m of operating profit (25%) before central overheads in 2002. There have been calls from uninformed investors and some press commentators to 'close the under-performing Central London restaurants', or sell them. But, as you can see from the above, this is crazy advice. The second group of restaurants, those between 10-15 years old, are also important contributors to group turnover and profit. On our estimates, there were 29 of these trading in 2002. Our model shows an average restaurant in this category generated around £865,000 in revenue and £225,000 in operating profit. We have, again, projected a like-for-like decrease in sales in 2003 of 10%, so average sales would fall to £785,000 and operating profits to £193,000. An £80,000 fall in sales here causes a £32,000 drop in operating profits – once again, some 40p of operating profit is lost for every £1 of sales foregone. This group of restaurants will be the powerhouse of group results in future years. In 2002, it contributed 15% of the pizza restaurant chain's operating profit. By 2010, on our estimates, it will contribute over 50%. The negative effect on the group results is clear if you look at the combined impact of these two pizza restaurant groups. In 2002, we estimate they jointly contributed £62.9m of revenue and £17.2m of operating profit. In 2003, we estimate they will contribute £58.2m of revenue and £15.1m of operating profit, £2.1m less than in 2002. The following management actions have been taken to restore these units to their former levels of profitability: 1. The introduction of a new menu and larger pizzas; 2. Holding prices: there has been no menu price increase since June 2001; 3. Dropping the advertising campaign that ran in 2002 and cost £1.2m; 4. Re-organising the operational management structure of the pizza restaurant chain; 5. Accelerating the capital investment programme in the 140 restaurants that are over 5-years old. Most of these will attract some refurbishment over the next two years at an average cost of £75,000. This Bulletin shows clearly the impact of falling like-for-like sales on group operating profits in the older restaurants, and the action management has taken to restore profits to previous levels. A restoration of profits in these restaurants would lead to an improvement in the company's economic value and ultimately a higher stockmarket price. Do not allow the benefits from this action to be stolen away from you by Venice Bidder or by any other opportunistic third party. Reject Venice Bidder's approach. We will look at the projected performance of the newer restaurants in Monday's Bulletin. Jeremy Utton Analyst Investment Management plc 14th March 2003 |
Posted at 28/2/2003 14:03 by bigboyo come on daytonathese old boy networks cannot be beaten --- all the pigs have their big hooters at the trough piz is a great brand --- and it has long term potential --- if we sell ( i have shares in piz ) at this ridiculous offer price then all the brand value is being given away for free --- the offer is easy to finance at a 10ish p/e where is the risk to the bidder ? NONE -- all upside and little risk or downside all imho dyor etc |
Posted at 01/11/2002 18:20 by bdubs JTCodI was also unable to attend the AGM. Regarding 'share buyback'I don't think this was discussed. I understand a possible MBO was, but the chairman said this had "not been discussed at Board level". Evasive? Read into this what you like. However, you may wish to read the interesting report on The Motley Fool PIZ BB by AliceinWonder1. BW |
Posted at 01/11/2002 13:56 by bigboyo buffetis that the kind of buffet you eat or is it pronounced boofat ? LOL cheap tasty meals -- supermarket deals -- overseas units open -- lots uk towns still haven't got pizza express -- new pasta chain as co-driver of growth does that answer your question marty declaration -- i hold piz shares |
Posted at 23/10/2002 23:29 by bigboyo well with interest rates so low the financing would be easy in terms of cashflowhowever the VULTURE ( not venture ) capitalists always need an exit route --- with PIZ once delisted how would the market react to a relisting ? surely it would be ex growth --- piz needs a big plc to buy it out like mcdonalds have pret a manger ( or as i call them PRATS Muncher there ) |
Posted at 19/10/2002 00:14 by keeps I've recently spoken to someone who has eaten at PIZ several times over the last couple of years.Apparently pizza size hasn't changed. |
Posted at 06/10/2002 14:10 by andyj Alot of home truths spoken there, the failed attempt at a floor at £3.00 has also gone. As an aside I recently went there with friends and the first thing we all noticed was why are the pizzas smaller ? Ok they are nice yes, but if you try to hoodwink customers they go elsewhere. Look at the Deep Pan Pizzas in Central London, eat all you can salad pizzas whatever else you can find lying about all for a fiver, a little desperate methinks. They, PIZ, have undoubtedly cheapened their own brand and although they are cash generative i cannot see where the growth will come from. All of that said, the PE is very undemanding but with £3.00 failing to attract buyers, what level will ? |
Posted at 17/9/2002 00:41 by edmundss I agree with BigBoyo -- having been to Zizzi's once, none of the three of us will be going back -- the food (both pizza & pasta) was decidedly mediocre. Personally, I feel Pizza Express do a much better job of service & food. Interestingly, Zizzi's score slightly better (1pt) than PIZ in the new Zagat, but more expensive.Having said that, more variety and/or seasonal menu additions (ala Wagamama) wouldn't hurt PIZ. The "decent food at a reasonable price" sector is much larger than a few years ago, and provides more competition. PIZ's offering is basically unchanged, and isn't going to provide the stellar growth of the 90s. I think the current PE under 8 reflects disappointment that the company is not immune to competition and the general downtown. C'est la vie. Edmund. |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
