Companies: DOM   

Pizza delivery group Domino's Pizza has served up another excellent set of results as pre-tax profits for the year to December surged 54.2% to £6.5m. System sales (which included turnover from operated and franchise stores) rose 19.6% to £142.3m comparatively, while like-for-like sales were up 7.4%. Having completed setting up its commissary operations (support services) in 2002, Domino's managed to open a record 50 stores in 2003, at little additional cost. With a current tally of 318 stores, chief executive Stephen Helmsley is confident the company can service its target of 500 stores by 2006. E-commerce sales also improved 48% to £5.8m, with a shift moving to online orders, which accounted for 82% of sales as opposed to 18% from interactive TV. Although Domino's has repaid its £8.2m bank debt, due to forthcoming accounting regulations, where its employee benefit trust has to be charged as an expense on the balance sheet, the company now has net debt of £4.24m - a 32% decrease compared to the year previously. Cash resources stood at £3.7m. A dividend of 3.5p, up 75% from last year has been recommended. Current trading is also positive as like-for-like sales in the first six weeks of 2004 are up 4.3%. Consensus forecasts predict sales to increase to £70m in 2004 with pre-tax profits rising to £8m. As the shares have shot up 140% in the past year, hold to gain further value.