Dp Poland Share Discussion Threads

[jakleeds] 18/8/2015 11:03

A bounce from here gives us a nice double bottom. With results due next month, we could hopefully be seeing a move through the recent closing highs of 24p IMO...

[jakleeds] 13/8/2015 11:58

Well done. Someone just paid 21.95p (ask is 21.75) for 45000 shares...

[matt123d] 13/8/2015 10:47

Picked a few more up on that dip, next to no stock at that level though.

[lbo] 12/8/2015 12:40

Jakleeds I suggest you look into another failure called global brands SA which was involved in the Dominoes franchise in Europe. It too was listed on AIM but all its share price did in the end was collapse.

[bigboyo] 12/8/2015 11:25

I was looking at why the price spike and the sudden influx of new posters who are pumping the share price So back to first principles.

The full year accounts to 2014 showed a corporate store EBIDTA of GBP -284K BUT the total loss on P&L account was £2978K. This is due to central and head office costs being very high.

Even if corporate stores break even or make a small EBIDTA contribution in first half year 2015, the central costs will still mean that cash OUT flow will be around £1500K.

It may even be more as there are pre-opening costs for the major expansion. The cashflow will thus look pretty horrible and will deteriorate further in second half 2015 as the new stores start making operating losses.

Anyone expecting a huge improvement in cash OUT flow for year 2015 is deluded.

All above IMHO and DYOR etc etc

[jakleeds] 11/8/2015 16:27

Oops, spoke too soon

[jakleeds] 11/8/2015 13:43

Some decent buying, I'd be surprised if we finish only .5p up today

[matt123d] 11/8/2015 11:08

US listed PZZA and DPZ show the popularity of pizza!

[jakleeds] 11/8/2015 09:57

No pump and dump here littleboyo.

This is the world's most famous pizza brand gaining traction in its roll-out of stores in a stable and thriving economy in Europe.

Chart looks good, nice reversal today, and we already know there's significant further roll-out of stores in Poland in H2 2015.

Dominos are booming, even in places like India, so Poland should be a breeze IMO.

[bigboyo] 10/8/2015 20:27

pump and dump is on ??

[matt123d] 10/8/2015 15:14

Receiving some interest volume wise now.

[matt123d] 10/8/2015 11:34

Making good progress. Crucial level here to expand the triangle and open up 30p.

[jakleeds] 10/8/2015 11:33

Looking good in a bad market ...

[matt123d] 05/8/2015 15:10

Looks interesting here.

[someuwin] 24/7/2015 16:02

Will be over 20p soon imo.

[someuwin] 21/7/2015 09:07

Yes - a good time to be buying - imo.

[mikeh30] 20/7/2015 13:40

-Placing away a while back to expand aggressively.-3 x holding RNS, all stake building-cracking set of results.Recipe for success.40p target

[brutus8] 16/6/2015 16:43

Once the Greek mess clears we might see improvement. The brand is now recognised but needs customers with spending power so it's all really down to one question; is Poland economy growing ?

[guernseymoney] 16/6/2015 16:20

Bigboyo - thanks for the note and I fully agree - the 15p dilution way back when was a big blow for sure as well as this weird sell-off.

I should have said "take profits if you can, reinvest at lower levels" - I was lucky to be able to buy a considerable amount of DPP at 10p, but my average entry point is about 14p, so am only up marginally and for the record have yet to sell, but am seriously considering it.

That said, I always liked this share for the long haul and maybe I'll stick about.

[bigboyo] 16/6/2015 15:42

guernseymoney,

Longterm, DPP has bags of potential to make good cash profits. However, the killerblow as an investment was delivered in the heavily dilutive share issue around 3 years ago. This will be a long term drag on the EPS figure and puts a cap on market cap for the foreseeable future.

The current SP, in my opinion, cannot be sustained as we have a further period of (I suspect of at least 3 years) heavy losses due to new store openings.

The selloff of 6 corporate stores at book value meant that DPP absorbed all the initial capex, the initial heavy depreciation and all the accumulated losses and sold them for a pittance.

This is not sustainable as a business model.

The worrying thing for me is that no mention is ever made of DPP having a partner bank to roll out new sub-franchisees nor any indication that sub-franchisees will be anyone other than existing staff with inside knowledge of the best stores with the best potential.

I will wait for a suitable entry point as long term DPP has potential , but at this level the share price does not warrant investment in DPP with my cash.

[guernseymoney] 16/6/2015 14:31

Agree, sell.

[bigboyo] 16/6/2015 14:19

Well, the rights issue is here as predicted.

Only asking for 5.5 million gross , say 5 million net of expenses.

With a 31/12/14 cash balance of 4.5 million this gives a cash equivalance of 9.5 million as a starting figure at 31/12/14.

Cash burn of 220K per month during 2014 (see accounts) would increase with 20 proposed openings (cap expenditure and initial cash losses for minimum of 36 months per new store)

You cannot go back to market with just a million in bank so say DPP has to come back, say, when it still has 3 million in bank.

9.5 million minus 3 million leaves 6.5 million and even at cashburn of 220k per month it would need to be back for more within 30 months. That does NOT take into account increased losses from new openings.

Central costs are exceedingly high and initial stores are only ebidta breakeven (and some have been open 4 years). I think the cash that the existing stores will generate cannot offset the cash consumed by the new openings in the next 24 months.

Cash out, in my opinion, will increase from 220k per month during the next 18-24 months.

Also note that the starting date I have used is 31/12/14 , so 30 months from this date is only 2 years away.

This is what DPP said in December 2012 when it raised 10 million at a heavily discounted rate :

"The Company will use the proceeds to implement its plans to open a further 10 DP Poland-owned stores in both 2013 and 2014, to increase the marketing spend across all existing and new DP Poland-owned stores and to provide funding for its business through to anticipated EBITDA break even. "

[proactivest] 06/5/2015 11:00

Video interview with CEO Shaw



Peter Shaw, chief executive of DP Poland (LON:DPP), says the goal this year is to roll out the pizza franchise in two or three cities in Poland.
The Domino’s Pizza franchisee already has stores in Warsaw and Krakow but it is aiming to expand outside Poland’s largest two cities in 2015. Shaw says the strategy is a combination of profitability and expansion.
The company’s share price was on the rise yesterday after it revealed like-for-like sales across its corporate and franchised outlets were 17% higher than last year’s January-March period.

[hjfe] 05/5/2015 12:10

This is a great play now from these levels.