Dp Poland Share Discussion Threads

[adrunkenmarcus] 31/12/2018 13:44

I am tempted to top up. :-)

[the ghost who walks] 31/12/2018 13:24

Focus on value creation.

[the ghost who walks] 12/12/2018 21:08

Track record important. Without one no credibility,

[the ghost who walks] 12/12/2018 20:00

Value creation still evident it looks after reading the trading update

[lbo] 12/12/2018 16:14

No sign of the ghost who walks!? Maybe he should now be called the Ghost who ran away!!! The pumping on this share has been shameful and now the chickens are coming home to roost. Will the burned AIM investors even stomach another fundraising which will have to be at a very deep and painful discount? If not as I said the only buyer left is then Dominos themselves and I doubt they will place any equity value on the business as it is for the beleaguered AIM holders as they can just wait and step in when it eventually runs out of cash and goes under and they can get it for free anyway.

[bigboyo] 12/12/2018 15:59

I hate to say I told you so, but look at my post 872 about slowing sales momentum.

Facts do not lie.

The real question now is when the next rights issue is going to be and at what price. Probably better its sooner rather than later otherwise all bargaining chips are with underwriters who WILL screw the existing shareholders.

[trytotakeiteasy] 12/12/2018 11:31

Looks like this one is heading for the knackers yard! Management have lost all credibility. Probably the best outcome is for DPP to be taken over by another company.

[lbo] 12/12/2018 09:52

They are in a lot of small caps and many are coming under serious pressure. Not sure many can afford to keep taking the long road in small cap shares and has been said the markets can remain depressed much longer then many can remain liquid especially if you have to keep averaging in and supporting all those falling share price positions

[hybrasil] 12/12/2018 09:48

Pageant take the long road

[lbo] 12/12/2018 09:33

If Pageant cut their losses then the share price has a lot further to fall and it's the end of DPP. Perhaps the only thing they can do now is try support the share price but it looks grim and they will need also to support a rights issues very soon too

[hybrasil] 12/12/2018 07:44

Unfortunately lbo today's rns shows your pessimism to have been fully justified

[lbo] 10/12/2018 12:38

You are missing the point. When all the heavy lifting has been done and AIM investors monies burned setting it up in Poland they will of course step in. As has been seen before on AIM the MFA will be worth next to nothing in those negotiations as the buyer will ultimately control the destiny of the MFA.

[trytotakeiteasy] 10/12/2018 12:14

bigboyo - I can't disagree that director remuneration here has been questionable. Also the shares issued since the listing. Shares options issued to directors in 2017 were significant. A year in which the group made a £2.7m loss! What was the reward for? Also the exercise price of 0.5p is hardly demanding.

LBO - Of course in theory you are right. In practice there is little incentive from the US company to terminate the MFA. If the main company started terminating master franchise agreements then they wouldn't be able to attract new master franchisees.

DPP has done what the main US company wants. Open lots of stores to generate more royalty revenue for them. I just don't consider this to be a major risk for a company that is growing the Domino's store footprint. If you consider it to be a major risk why is that?

[lbo] 08/12/2018 16:57

There a lot more conditions then just quality and expansion targets that would enable them to terminate the MFA. (b) Termination by DPOF. DPOF may terminate the MFA earlier than the expiry of the above-mentioned term if the total number of stores opened in Poland at 31 December in each year is less than the development quota of stores specified in the MFA. It may also terminate the MFA in a number of other circumstances, including failure to comply in a timely fashion with DPOF's requirements for the submission of sales reports and other financial data or the payment when due of the royalty fee or advertising fee payable under the MFA. Termination may also be due to a failure by DPOF or its sub-franchisees to observe other provisions of the MFA dealing with the protection of the Domino's Pizza trademarks and/or the covenants by which DPP SA agrees to keep confidential information disclosed to it relating to the Domino's Pizza system and not to carry on or become interested in any similar business in Poland

[bigboyo] 06/12/2018 15:28

Th reason that the Master Franchise Holders decided to float on aim was to get suckers to pay for the losses of the new openings ... the initial investors are sitting at a loss, will be for the foreseeable future and have yet to see ANY sign of future profitability.

As an investment proposition, its been a TOTAL dog and nothing from the figures to date changes that.

20/7/2010 --- shares issued at 50p
6/12/2018 --- share value 24p (return of -52% or around -70% if money in bank)
20/7/2020 --- share value ???

In meantime look at the how much the directors have rewarded themselves :

Year to dec ...........|2011 | 2012 | 2013 |2014 | 2015 | 2016 | 2017 |2018
start cash (000).......|5059 | .873 |10929 |7297 | 4466 | 6987 | 6308 |4505
end cash (000).........| 873 |10929 |.7297 |4466 | 6987 | 6308 | 4505 |
cash raised (000)......| ..0 |13161 |... 0 |...0 | 5205 | 3055 | 5260 |
Spent cash (000).......|4186 |.3105 |.3632 |2831 | 2684 | 3734 | 6831 | tot £27m
Directors Pay (000)....| 185 |..194 |..283 |.328 | .351 | .352 | .325 | tot £2m
ShareBasedPayment(000) | 113 |..127 |..127 |..73 | .214 | .352 | .253 | tot £1.3m
Stores open ...........|..12 |...15 |...17 |..18 | ..24 | ..39 | ..54 |
Loss per store (000)...|.349 |..207 |..214 |.157 | .112 | ..96 | .126 |
Weighted shares (mill) |..17 |...28 |...92 |..92 | .109 | .129 | .142 |
Grp EBIDTA LOSS (mill) |1.76 |2.673 |2.844 |2.40 |1.645 |1.580 |1.780 |

[trytotakeiteasy] 29/11/2018 10:34

LBO - My understanding is that the franchise agreement would only have to be handed back if there are quality issues or if they didn't expand. The master company in the US doesn't care as long as there are more stores. More stores means that the master company gets more revenue.

The reality is that we should be close to profits in 2021 or shortly afterwards. If they can deliver on their promise.

[lbo] 29/11/2018 10:33

They have had over 8 years to build it to scale and are still making losses. The clock is ticking on the franchise agreement having to be handed back

[trytotakeiteasy] 29/11/2018 09:07

aDrunkenMarcus - Good point. They listed with no stores in 2010 and opened the first store in 2011. So they listed only with the Polish Domino's Pizza master franchise agreement i.e. just with a piece of paper. It is unusual for companies to list like that. Investors are really providing high risk venture capital funding. Most listed businesses at least have revenue although lots on AIM don't.

Generally I agree. They should have listed when they were more stable. The result of listing so early on has been successive equity issues. Number of shares from 20m to 153m and counting.

[adrunkenmarcus] 29/11/2018 09:01

An interesting summary - thanks for sharing. It takes time to build a business to scale and I sometimes wonder if DPP would have been better developing somewhat as a private company before floating publicly.

[trytotakeiteasy] 28/11/2018 18:18

They have a huge amount of share options. CEO has I think over 3 million vested options (i.e. allowable for excise) at 0.5 pence. Why would he buy shares at 25p when he can vest options and buy them at 0.5p. See the annual report.

[lbo] 28/11/2018 15:53

Why aren't the Directors buying?Gold Investors Target Executives With Less Skin in the Game https://www.bloomberg.com/news/articles/2018-11-27/coalition-of-gold-investors-says-exec-ownership-key-to-returns

[trytotakeiteasy] 27/11/2018 18:32

cube.investments/dp-poland-dpp-the-bull-and-bear-case/

[sabre6] 26/11/2018 16:08

That was quite a large buy today.
Has someone called the bottom or do they have great confidence in this company.