Dp Poland Share Discussion Threads

[guernseymoney] 25/9/2013 09:33

Thanks for the link to that presentation.

[sammy_smith] 25/9/2013 09:07

LISTEN: DP Poland (DPP) - Investor presentation H1 2013

Click the link to listen

[guernseymoney] 24/9/2013 15:58

Interesting comments here on the interims, I think I will HOLD and wait for full year results.

Funny, in that I work with two Polish colleagues who said pizza is HUGE in Poland and they think their fellow Poles will love having Dominos there and how Western brands are popular with a consumer/brand savvy 18-30 demographic - finger in the air analysis I realise, but interesting nonetheless.

Agreed that patience is the key here along with faith in management that they can maximise growth whilst ensuring best and most sensible use of working capital.

[m1das_touch] 24/9/2013 13:14

They're still in the start-up phase bigboyo, so cash-burn is inevitable. It was the same in the early days of DOM. Right now it's all about building brand awareness and presence, hence the hike up in marketing spend this year.

Franchise stores will help reduce costs, as the franchisee takes on a lot of the capital costs.

I agree when you look at the pure numbers, it's not great...but I'm more interested in seeing good overall progress and strong life-for-like sales right now. The numbers in 18-24 months will tell us much more.

Management still have a lot to prove, but we already know the business model works...the risk is whether this management team is capable of executing it. Having Chris Moore on board may be one of the keys to them succeeding.

[bigboyo] 24/9/2013 10:41

Look at the numbers in cash flow statement ... cash burn £1.75 million in 6 months to June 2013 and the net cash from operating activities is as bad in the six month period to June 2013 as the same six month period to June 2012.

And to me the numbers still look very very poor and will probably look even worse for the full year as more stores open (which will trade at an EBIDTA loss for at least 18 months and which will hot the bottom line very very hard).

[m1das_touch] 24/9/2013 08:07

Decent interims overall reporting slow but steady progress. Like-for-like sales growth is encouraging and very positive that the first franchisee is about to open a store...that's where the real growth and profits will be moving forward.

New, lower-cost store format is interesting and should help the company move towards profitability.

I'm reasonably hopeful that the long-term story is intact, and if management can get it right there's no reason why over the next 5-10 years this company can't be as successful as Dominos Group in the UK & Ireland. Definitely one for the extremely patient though!

[guernseymoney] 08/8/2013 19:50

Thank you both for your comments.

100p is the dream but I think there is still room for these to bottom out at 12-14p following the potential dull-ness of the interims that will come out soon.

Agreed the rights issue diluted the life out of this thing and also that there should be more news flow - maybe not to the extent of DOM UK, but current flow is abysmal.

Reading the offering doc, they are far from the stores they had anticipated and it's going to take a while for the new stores to break even. If DPP can survive beyond that point then worth a punt. Again, the interims will be interesting to read.

The video interview that they released on Interactive Investors this year was interesting but I want more numbers to munch on.

[wylecoyote] 08/8/2013 13:19

Some of the comments on here are disappointing... This is still a start up, it takes time to breakeven and starting generating cash flow. Still I am keeping a close eye on here.

[bigboyo] 07/8/2013 10:06

Guernseymoney,

I am deeply unimpressed with management actions to date , the rights issue was badly timed , it led to a huge number of shares being issued.Good management would have anticipated the slow trading and taken pre-emptive steps to preserve existing shareholder value. Lets hope you are right about the 100p, I have my doubts !

In terms of information, I am a firm believer that management allways rolls out good news as soon as they can. DP was no different in 2011 when it gave regular updates. In 2012 and thus far in 2013 it has clammed up , in 2012 because things were not going well (as indicated by poor results and resultant rights issue) and then in 2013 presumably because things are also not going so well.It is that attitude which, in my opinion , does not bode well for shareholders. Look at DOM (Dominos operator in UK and Germany) and see how regular the trading updates are.

Incidentally, Dominos UK released their interims at the end of July (same period end) and yet we will probably have to wait another SIX weeks until mid-September (based on releases for 2011 and 2012 ) for DP (a company turning over less than 1% of the UK operator) to announce their interims.

This says it all to me !

[guernseymoney] 06/8/2013 10:04

Hi Bigboyo

I did see a short write up in a recent Investors Chronicle and the issues with the German stores, interesting how Investors Chronicle called a "SELL" for DOminos UK on the basis of PE looking too heavy compared to growth prospects.

I work with a few Polish colleagues (am Big Four) and they say that pizza is BIG in Poland and that they think on a conceptual basis, Dominos in Poland sounds like a good idea and could be successful however from a financial point of view, I am worried about the slow progress and cash burn however have faith in the team at the top, particularly since they brought in that chap formerly from Dominos UK.

That said, if things go in the right direction in the next 2-3 years, I dont see why these shares couldn't be trading hands at 100p or more in 5 years from now. IMHO.

Will be interesting to read the interims, there is currently little news out there.

[bigboyo] 01/8/2013 10:55

Guernseymoney,

Did you note the news from Dominos Germany ... losses increasing and break even put back and the company writing off large sums of capital plus selling off existing company stores to "world class franchisees" ...

I wonder if DP poland will attract any "world class franchisees" to sell off their loss making company owned stores.



"As a result we have decided that we will proceed more cautiously with our German expansion, opening fewer stores in 2013 and 2014 than originally predicted. This will postpone breakeven in the German market to 2016 or 2017. We will work closely in partnership with our franchisees, to ensure that store level economics are really robust. Only then will we accelerate the rollout. We trust that our investors will understand and support this careful use of their resources.

As a result of the performance of the German business and our decision to proceed more cautiously with our German expansion, the Group has recognised an exceptional impairment charge of GBP11.1m in the period. GBP6.7m of this charge related to the German Master Franchise Agreement and a further GBP4.4m to property, plant and equipment in the 15 corporate stores.

We know the best way to get great results from stores is to put them in the hands of franchisees - and with five world-class franchisees now operating in the German market and more arriving shortly, we are excited about the future in this territory."

Given the superior performance of our franchised stores, we have taken the decision to transition the majority of our corporate stores across to franchisee management as soon as possible. As a result of this strategy, the Group expects to incur additional one-off costs in the second half of the year of approximately GBP5m-GBP7m. "

[guernseymoney] 30/7/2013 11:08

This share is starting to annoy me. No news, no updates. Will be intereted to see cash burn when they bring out their interims. Another capital raise on the horizon me thinks.

[haroldthegreat] 30/5/2013 16:34

fitting out stores costs money! the question is how popular are the pizzas in poland?

[bigboyo] 15/5/2013 13:54

see my post 119 above ...

So total turnover for 2012 = circa 1.8 million ... assume 12 stores only ... and the Company states that these have ALL been trading for 1 year ...

1.8 million divided by 12 = 150k per annum = 3k per week.

This is way poor and its laughable to suggest that DP Poland has reached a turning point.

The Company will continue to leak cash and if you care to look at the cashflow data it shows (all figures rounded) :

cash at dec 2011 = 874, 000
Financing = 13,162,000
closing cash dec 2012 = 10,930,000

So 874 + 13162 - 10930 gives us cash out of business in one year = £ 3,106,000

And the more stores they open the more cash they will lose !!

They are being very optimistic in saying that they have cash until EBIDTA at group level is reached .. franchisees will not be able to finance new stores based on existing company turnover figures... OR the company will have to give the franchisees exceedingly beneficial buying terms .. again this means cash leaking out of business.

The share price is still heading lower unless trading figures show a massive improvement.

[mirandaj] 26/3/2013 09:44

DPP have been awarded the Laurel poll. It is an award that gives evidence of market popularity of brands that are leaders. A very good sign for the future.

[cheou812] 26/3/2013 08:50

Well, the market seems impressed but they're rather vague with sub-franchising plans. Sales growth good. Just hope the money doesn't run out before break even. Who knows when that could be? Wake me in five years...

[guernseymoney] 19/3/2013 15:23

I too am annoyed by the lack of news. Not even an operations update. Pretty disappointing.

[cheou812] 18/3/2013 17:09

Some franchise news would be welcome!

Sure is dead here...

*tumbleweed*

[mirandaj] 20/2/2013 12:33

In full see link:

One company Sheehan identifies as a promising investment is Dominoes Pizza Poland which is headquartered in the UK.

Sheehan says: "In October we invested in DP Poland which is a sole franchise, an emerging business. The demographics and economics for eating out pizza are fantastic in Poland. It has a young population, the economy is growing, it has an under developed infrastructure for pizza and fast food delivery. We think it is a good company."

Earlier this week WH Ireland acquired Seymour Pierce wealth from administrators for £25,000.

[sabre6] 19/2/2013 16:48

article in mail online under small cap aim shares.

[sabre6] 02/2/2013 16:52

If George Soros is invested in DPP then this is sure to fly as he usually wants a decent return on his money.

[hybrasil] 01/2/2013 16:26

Well done parvez short term at least this can only be good

[parvez] 31/1/2013 15:13

hybrasil, am listening and just bought at 29.4p however showing as a sell!! :)

[m1das_touch] 31/1/2013 12:17

I wouldn't worry whether anyone is listening or not...main thing is the share-price is finally moving! This has the feel of institutional buying, fund managers building positions perhaps.