25/07/2005
Pizza delivery play Domino’s Pizza served up a spicy interim statement for shareholders, including news of record store openings and robust like-for-like sales growth. For the half ending 3 July, pre-tax profits powered up by 34.7% to £5.5m, on a 16.6% jump in turnover to £40.5m. The profits leap included £800,000 worth of profits from the sale of 13 corporate stores (owned by the company rather than franchised) in June. Stripping out exceptionals, profits were still 22.6% higher at £5m. Like-for-like sales in the 317 mature stores rose by 8.4%, a factor partly attributable to the launch of the Cheese Steak Melt pizza in the second quarter, as well as weaker comparables. Similarly encouraging was the 64% leap in web-based sales, which now make up 10.6% of delivered pizza sales in the UK. Thanks to strong cashflow, chief executive Stephen Hemsley has been able to return cash to shareholders through buybacks and a healthy dividend – he announced a 41% jump in the half-time payout to 3.1p. The one cautious note from Hemsley involved strong comparables on like-for-like growth for the second half year, driven by the phenomenal success of the Double Decadence pizza – although he is confident of solid second half growth, Domino’s could find it tough to match first half growth. He insists market share is being taken in an expanding sector and the company plans to open between 800 and 1,000 Domino’s Pizza stores in the UK and Ireland. For the full year the analysts' consensus suggests profits of £10.5m–£10.7m, giving earnings of 15.2p a share. Plenty of growth to go for. Buy.
| Market cap: | £165m |
| PE Forecast: | 19.8 |
| Share price: | 302p |
| LSE | £284.93m |
176.75p
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-0.50p
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| Other company articles: |
| 03/03/2008 |
| 03/03/2008 |
| 14/12/2007 |
| 01/06/2007 |
| 27/02/2007 |
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