Companies: DOM   

Pizza delivery group Domino's Pizza UK& Ireland increased pre-tax profits 68% to £2.9m in the six months to July and sees continuing 'robust growth' despite 'more challenging' market circumstances. Aim-listed Domino's increased interim turnover to £30.4m and increased its outlets from 255 to 290 stores, mostly franchised rather than directly owned. First-half earnings rose 58% to 3.47p a share and the interim dividend is up 69% to 1.32p a share. Chief executive Stephen Hemsley says the company has stuck to its formula of 'delivering high-quality pizza in the promised time'. Domino's has also 're-imaged' 90% of its stores. The company, which increased full-year profits 48% to £4.2m in 2002 on turnover up 20% to £53 million, is to call a special shareholders' meeting to approve setting up an 'Employee Benefits Trust'. This would then make an offer to shareholders for a proportion of Domino's outstanding shares, a move that would go in tandem with a share buy-back programme already agreed.

Together with long-term incentive schemes and share option plans for staff, these measures are seen as boosting demand for Domino's shares (even if partly from itself). The buy-back would have the effect of pushing major shareholder Nigel Wray's stake above the 30 per cent bid trigger and so the company will also ask shareholders to waive the relevant Takeover Code rule which would otherwise force Wray to bid.