Companies: DOM   

UK market leader Domino's delivered yet another set of results ahead of expectations in the year to December, increasing pre-tax profits by 31% to £2.9m with like-for-like sales ahead by 20% so far this year. Domino's earnings per share were up a dazzling 53% to 3.9p compared to 2000, on turnover that was increased 35% to £43.8m. Much of the increase was attributed to a nationwide TV advertising campaign, which is funded on a continuing basis from a 4% sales levy paid into a fund by each franchise operation. Though only 40% of the UK TV audience have homes in a Domino's delivery area, new stores are feeling the positive effects, with average sales up 12% compared to new openings made previously. A buoyant management team reiterated its ambition to increase the number of Domino's to 500 by 2006 - it currently stands at 241, after four new openings since the year-end. A new plant will open in Penrith in the summer, allowing further expansion into Scotland and the North of England and creating the infrastructure to be able to service the targeted 500 UK stores with little extra investment. House broker Peel Hunt has raised its forecast yet again, and now expects £3.3m pre-tax for the year, delivering 3.9p of earnings, rising to 5.4p on £4m profits in 2003.