TIDMDPP
RNS Number : 0317U
DP Poland PLC
31 March 2021
31 March 2021
DP Poland PLC
("DP Poland" or the "Group")
Full year unaudited trading update for 2020
and
Update on the progress of integration with Dominium S.A.
DP Poland, the operator of pizza stores and restaurants across
Poland, announces a trading update for the year ended 31 December
2020 and an update on the progress of integration following
completion of the acquisition of Dominium S.A. ("Dominium") (the
"Acquisition") on 8 January 2021.
Trading Update
DP Poland's trading performance is in line with management
expectations for the year ended 31 December 2020:
-- 53 corporate stores and 16 sub-franchised stores in operation
-- System Sales(1) up 7% to PLN 87.1m (2019: PLN 81.4m)
o approximately 4.6% like-for-like(2) growth in System Sales
-- 85% of delivery sales ordered online (2019: 82%)
-- Cash at bank of GBP1.2m as at 31 December 2020
(pre-fundraise; GBP3.9m as at 31 December 2019)
Trading performance for the Group and pro forma consolidated
results for the year ended 31 December 2020 (which include the
unaudited results of Dominium for the year ended 31 December 2020
for illustrative purposes):
DP Poland Pro forma consolidated
(standalone) (incl. Dominium)
System Sales PLN 87.1m PLN 158.2m
-------------- -----------------------
Revenues PLN 74.8m PLN 144.7m
-------------- -----------------------
-- As of 31 December 2020, prior to the Acquisition completing,
DP Poland and Dominium (together the "Enlarged Group") operated a
combined 125 stores, including 107 corporate stores and 18
sub-franchised stores
-- The Enlarged Group's business is currently skewed towards
delivery sales, which generated 75% of System Sales in 2020.
Management believe this provides a stable basis should restrictions
linked to the COVID-19 pandemic continue throughout 2021, linked
with an opportunity to recover some of the lost dine-in sales once
the restrictions are lifted
-- -1.1% like-for-like decline in System Sales, comprising:
o a significant like-for-like growth in delivery sales
(+16.6%)
o a significant like-for-like decline in dine-in sales (-32.6%).
Dine-in sales have been negatively impacted by the COVID-19
pandemic and the resulting lockdowns and operational restrictions
imposed in Poland
Integration of Dominium
Since the completion of the Acquisition, the Enlarged Group has
been implementing a comprehensive integration programme, as
outlined in the admission document published on 21 December 2020
which is progressing well. The key milestones achieved during Q1
2021 include:
-- Completed the buy-back of 5 sub-franchisee stores, to
optimise the Group's store footprint and operational
efficiency;
-- A new organisation structure, integrating the teams of DP
Poland and Dominium, has been implemented;
-- Where required, equipment at Dominium locations has been
upgraded to meet the requirements of the Domino's Pizza Master
Franchise Agreement;
-- Staff training and revised operating manuals have both been completed;
-- The key suppliers for the Enlarged Group going forward have been selected and approved;
-- The DP Poland commissaries and supply chain have been
reorganised and upgraded, where required, to accommodate supplies
to all of the Enlarged Group's stores; and
-- The DP Poland e-commerce platform has been upgraded and
successfully launched for the DP Poland stores. The new e-commerce
platform will handle all online orders for the Enlarged Group once
fully integrated.
The final stages of the integration plan, which are currently in
progress and are expected to conclude during Q2 2021, will
involve:
-- Integrating the IT systems of Dominium locations to the DP Poland platform;
-- Converting the Dominium franchise so that Dominium locations
operate under the "Dominium by Domino's" brand, with these
locations also migrating to the DP Poland e-commerce platform;
and
-- Implementing new delivery areas, taking into consideration the denser network of stores.
The Board is hopeful that the government-imposed restrictions in
response to the COVID-19 pandemic will be lifted during Q2 2021,
with at least partial re-opening of restaurants for dine-in sales.
The gradual recovery of dine-in sales is expected to improve the
Enlarged Group's performance throughout 2021.
On the occasion of announcement of full-year results for the
year ended 31 December 2020, which is expected as soon as possible
in Q2 2021, the Board plans to organise a webinar for investors,
presenting an overview of the conversion process, expected to be
completed by that date, as well as the run-rate performance of the
Enlarged Group.
Commenting on the integration of DP Poland and Dominium, DP
Poland's Chief Executive Officer, Piotr Dzier ek, said:
"I'm very proud of the combined team of DP Poland and Dominium,
and the pace of integration work that my fellow colleagues have
progressed since January, despite the COVID-19 headwinds. We look
to the future with optimism: we expect that fully integrating our
IT infrastructure and systems will make the Enlarged Group more
resilient to the ongoing impact of COVID-19, and we believe that we
will be able to demonstrate the full potential of our combined
business once dine-in services are allowed to resume in
Poland".
(1) System Sales - total retail sales including sales from
corporate and sub-franchised stores, unaudited
(2) Like-for-like System Sales growth in PLN, matching trading
periods for the same stores between 1 January and 31 December 2019
and 1 January and 31 December 2020
The information contained within this announcement is deemed to
constitute inside information for the purposes of article 7 of the
market abuse regulation (EU) no. 596/2014.
The person responsible for arranging the release of this
announcement on behalf of the Company is Nick Donaldson,
Non-Executive Chairman.
Enquiries:
DP Poland plc Tel: +44 (0) 20 3393
6954
Nick Donaldson, Non-Executive Chairman
N+1 Singer (Nominated Adviser and Broker) Tel: +44 (0) 20 7496
3000
Shaun Dobson / Will Goode / George
Tzimas / Amanda Gray
Notes for editors
About DP Poland plc
DP Poland, through its wholly owned subsidiary DP Polska S.A.,
has the exclusive right to develop, operate and sub-franchise
Domino's Pizza stores in Poland. Following its acquisition of
Dominium S.A., which constituted a reverse takeover under the AIM
Rules for Companies, the group now operates over 100 stores and
restaurants across a number of cities and towns in Poland.
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