Dp Poland Share Discussion Threads

[mafia music] 27/2/2012 21:54

but it doesnt nessesarility need to be profitable in order to see a shareprice increase. The spike to 120p is 100% increase from todays price.

so when its profitable it would be trading at much higher price

[bowlhead] 26/2/2012 12:07

I think WyleCoyote is right, this is not going to be profitable in the next while. This is the sort of investment that if you have a young child and some spare cash that was otherwise going into a child trust account or junior isa, you could put away a few hundred pounds for them in this stock - look back in 5-10-15 years and maybe it's (including dividends in later years) worth 5x or 10x what you paid for it, maybe it's worth nothing.

Alternatively you could put a hundred pounds in a bank account or savings bond or low risk blue-chip stock at 5% growth per year - and with the miracle of compound interest, after ten years your £100 becomes... £163. Less the inflation impact. Hardly seems worth it...

Poland is one of the better growth prospects around Europe at the moment and although this is clearly not low-risk, if you have a long term outlook it might add a bit of fun to an otherwise boring diversified portfolio.

[wylecoyote] 25/2/2012 23:25

mafia,

the rollout of Dominoes in Poland is similar to the model employed in other countries. It is in their prospectus, the tendency is to have a number of their own stores as part of the main franchise, as the franchise becomes recognisd they license the franchise out instead. So, the cash should start to roll in after a few years and the risks of ownership are passed to the franchisees.

I have to admit, i haven't studied the recent placing but am surprised that they did it because I had assumed that they had already planned what they wanted to do with the original placing. Still I would guess that the return on investment would take around 5 to 10 years and the business model tends to be cash generative. Stilll DYOR.... Good Luck

[mafia music] 22/2/2012 15:55

its going to be raising more money in time thats almost certain

anyone know when its likely to turn profitable?

so far revenue = 140k per annum
administrative expenses = 1.3m pa
cash 3.7million?

are these correct?

its slowly going to pick up every year. But as the company spends money on developing its business and opening stores its going to need more money.

im just trying to dig at the moment only just come across this company earlier today so if anyone's got some knowledge and information that might be of interest will be much appreciated

[bluebelle] 22/2/2012 15:30

mafia
I agree with you. Worth watching but I prefer to wait for news of firm progress and pay a premium for certainty.

[mafia music] 22/2/2012 15:22

im surprised there's not much interest here. Still early days. Im watching at the moment will be interesting to seeing how things develop .


is anyone keeping a close eye on this and whats the dominos brand like in poland. Does it have a strong presence?

[bowlhead] 07/2/2012 01:18

I see they raised about 65% of what they were looking for from the rights issue - they placed £2.6m but only got £0.65m of the £1m extra they were going for. Overall with placing and rights I suppose 90% of total cash they sought.

The RNS language said they were "...very pleased with the level of Open Offer take up, which demonstrates the strength of ongoing and widening support for our strategy."

I'm not sure what to make of it. If they already had the £2.6m in the bag, what was the extra £1m going to be used for? With existing cash balances, plus placing proceeds, to fund the pipeline of new branches - either they needed a million of extra working capital, advertising and the like in connection with new stores, or they didn't?

Is it just a case of 'they could have got away without it so it's nice to have some extra cash to blow', or 'they really needed a million and now have to delay their plans until they get enough net profits to fund the next 350k they didn't raise'?

Looking at the original fundraising RNS: in a random week of December they made PLN 104k of revenue over 10 stores. So that's 10400 PLN per store, or quite a bit less than 10k for the average 'less mature' store. 10k PLN is around 2k GBP. Whereas if you look at the most recent trading statement for the UK operation, DOM, they did GBP 145m for 13 weeks, over 726 stores, = GBP 15k per store. And although they are obviously more well established in UK/Ireland/Germany than Poland, those figures still only reflect about 80% 'mature stores' versus the newer ones.

One has to wonder, if they are £350k short on their fundraising target to 'provide funding for the anticipated rollout of new stores', and these stores each only give you £2k per week revenue, this sounds like a hell of a lot of weeks - not to mention I assume there's basically zero actual profit per new store as we have no sub-franchisees yet, we're paying all our own expenses. I see that in the last fortnight of 2011 they opened the last 2 stores which they had to open in 2011 as a condition of the master franchise,- one has to wonder if there were any revenues whatsoever to date, or if they were just 'technically' open for the deadline...?

This could be an interesting story with the Euro footy in eastern Europe this summer, a European time-zone Olympics etc - I'm sure in the UK there will be a fair few people ordering in from Dominos. But in Poland, where they don't have the economies of scale, the brand recognition and the average order is only 'over 38 pln'' ~ £7.50 (in the UK this would barely get you a bottle of coke and a side order of potato wedges or chickeny bits), not even a medium pizza - it might be a long time before anything like profitability emerges.

I did take up my rights (and requested a few more) in this fundraising, as I think the summer of TV sport may help to flatter the Q3 revenues and encourage people to sign up for franchises at a revenue level they wouldn't get in an average year. And although the Poles don't even have much of a concept of delivery pizza, fast food is usually OK in a recession, while if GDP growth continues, this will help fuel the rollout. Hopefully the recent placing price will be support for a while.

[sabre6] 29/12/2011 17:16

Tipped by Edmund Jackson

[m1das_touch] 23/12/2011 11:20

This enables management to get to the key target of 20 stores in 2012, after which they can sub-franchise...and that's where the real growth should start because sub-franchisees are required "to meet all capital and operational costs of constructing and equipping their sub-franchised stores."

I'm certainly taking up my entitlement in the open offer and will apply for a few more too under the excess application facility. I love the way this company is under the radar right now...here's hoping that over time it goes the same way as DOM!

[ukinvestor220] 23/12/2011 09:57

£2.75 million Placing of New Ordinary Shares at 60p and Open Offer to raise up to £1 million

[mirandaj] 22/12/2011 20:49

Middle of Warsaw nicely covered now - where next?

[m1das_touch] 21/12/2011 17:43

I agree cheou, not really a stock for short-term trading, particularly as small-cap risky stocks are out of favour.

Long-term I feel quietly confident that DPP management can produce here. It was a bumpy ride in the early days with DOM (UK & Irl)...but look where they are now - EPS growth of more than 20% for last 4 years, dividend growth of more than 30% for last 5 years! Not many stocks doing that in today's climate, no wonder DOM continue to be highly rated.

I have a good chunk of DPP tucked away in my SIPP and happy to wait patiently for potential growth and dividends.

[cheou812] 21/12/2011 11:30

Good to see mgmt is on schedule with the store openings.

Still, I think because of market conditions, the share price won't really start heading north until Q2 2012. IMO

I hope I am wrong.

Still holding (and in profit).

GLA

[mirandaj] 01/12/2011 09:58

Store nine up and running:



See pictures

[shaggy46] 01/12/2011 09:44

Great time for picking a few of these up, or get some on a t25 trade as they have already said 3 stores opening in December!

[hybrasil] 24/11/2011 09:21

I was an early investor in the English Dominos. My recollection is that it took a long time to get really profitable but once it did....

[xcap] 24/11/2011 07:20

9th Store. Can't fault managment on thier commitment: they are "delivering"! and another 3 by year end. key sentence for me in the RNS is "Our steeply building sales reflect this concentrated store opening programme." When we hear about sales figures/revenue the share price will fly IMHO. Any one have any idea when financial news might hit the market?

[sabre6] 17/11/2011 18:46

Hi
Eigth store opend today

[mirandaj] 14/11/2011 10:01

Impressive - now pictures of store 7 on the web site

[xcap] 11/11/2011 08:15

I bought in this week @65p. can't work out what the expected forecast average revenue per store is and the forecast earnings per store. Anyone know of any reserach report/analysis done by anyone? or do any posters have a view?
regards

[shaggy46] 10/11/2011 17:38

rimmy

agreed, probably a bit tight, but if we can get 8 and 9 open by end of November (which should be feasible considering the have halved the time it takes from 12 to 6 weeks) then that leaves 10 and 11 in December, maybe 12 will come through in January, a few weeks out would still be a good result i think.

[rimmy2000] 10/11/2011 15:03

shaggy, seems a bit unlikely I thought? only recently released news of number 7?

[beaufort1] 10/11/2011 15:01

Almost back where we started...

[cheou812] 10/11/2011 14:33

Will need lots of good news coming through to stop the share price from taking a complete battering.

Thanks Greece and Italy!

[shaggy46] 10/11/2011 12:55

The last company report stated 12 stores open by the end of 2011, so that means there should be 5 new stores to open over the next few weeks...