Interim Management Statement

RNS Number : 9015Y

Domino's Pizza UK & IRL PLC

05 January 2011

 

5 January 2011

DOMINO'S PIZZA UK & IRL plc

Quarter Four Trading Update

13 weeks to 26 December 2010

Domino's Pizza UK & IRL plc ("Domino's" or "the Company"), the leading pizza delivery company in the UK and the Republic of Ireland, today announces its trading update for the 13 week period to 26 December 2010 ("the period").

Domino's is delighted to announce system sales for the period increased by 17.8% to £132.5m (2009: £112.4m). System sales for the 52 weeks ended 26 December 2010 increased by 19.2% to £485.3m (2009: £407.0m). Like-for-like sales in 553 mature stores grew by 10.3% for the period (2009: 8.6% in 501 mature stores), bringing like-for-like sales growth for the year to 11.9% (2009: 8.4%).

The Company has continued its strong expansion plans during the year and opened a record 57 new stores (2009: 55), including the first Domino's stores on the Isle of Man and the Isle of Wight. No stores were closed during the year, bringing the total number of stores in the system at the year end to 665 (2009: 608).

We have continued to see excellent growth in e-commerce sales during the year, supported by the introduction of our iPhone ordering app and increased activity in the social media arena. Since its launch in September 2010, over £1million of sales in the UK have been taken through the iPhone app. E-commerce sales for the year in the UK and Republic of Ireland were £128.0m (2009: £78.5m), an increase of 63.0% (2009: 40.4%), and now account for 35.8% of UK delivered sales (2009: 27.8%). With the impending launch of an ordering app for android phones, these figures are expected to continue to rise.

The Company continues its policy of returning cash, which is not required in the business, to shareholders in the form of share buybacks and dividends. The total amount returned to shareholders during the year was £18.3m (2009: £18.1m). The Company acquired and subsequently cancelled 1.2m shares at a cost of £4.7m and a further £13.6m was paid out in dividends.

Chris Moore, Chief Executive, commented: "It's fantastic to be reflecting on another incredible year of growth - especially as 2010 saw Domino's celebrating 25 years in the UK.  It has been a great year with a particular highlight being the opening of our new commissary, which provides the base we need to continue to grow over the coming years.

"For the last few years, we have been talking about our strong sales figures beating some tough comparatives - and this year is no exception. We have set ourselves some challenging targets to beat in the coming year, but we believe that a great product, supported by exemplary customer service and innovative marketing, will continue to recruit new and retain existing customers in 2011.

"We have again finished the year with a like-for-like sales performance that is ahead of expectations and, together with the improvements in our operational gearing, I am delighted to announce that the Company will deliver full year 2010 profits ahead of current City expectations. We will update the market further on 15 February 2011 with the publication of the Company's preliminary results."

-Ends-

For further information, please contact:

Domino's Pizza:

Chris Moore, Chief Executive Officer                             01908 580604

Lee Ginsberg, Chief Financial Officer                             01908 580611

Georgina Wald, Corporate Comms Manager               01908 580660

MHP Communications:

Tim McCall, Anthony Arthur, Simon Hockridge          020 3128 8100

Numis Securities Limited

David Poutney, James Serjeant                                         020 7260 1000

Notes to Editors:

Domino's Pizza UK & IRL plc is the leading player in the fast-growing pizza delivery market and holds the exclusive master franchise to own, operate and franchise Domino's Pizza stores in the UK and the Republic of Ireland. The first UK store opened in Luton in 1985 and the first Irish store opened in 1991.

As at 26 December 2010, there were 665 stores in the UK and the Republic of Ireland. Of these, 527 stores are in England, 47 are in Scotland, 26 are in Wales, 15 are in Northern Ireland, one is on the Isle of Man, 48 are in the Republic of Ireland and one is a mobile unit.

Founded in 1960, Domino's Pizza is one of the world's leading pizza delivery brands. Through its primarily franchised system, Domino's Pizza operates a global network of more than 9,000 Domino's Pizza stores in over 65 countries. Domino's Pizza has a singular focus - the home delivery of pizza, freshly made to order with high quality ingredients.

Customers in the UK can order online at www.dominos.co.uk and customers in the Republic of Ireland can order online at www.dominos.ie. In addition, iPhone customers can order by downloading the free Domino's app.

For photography, please visit the media centre at www.dominos.uk.com, contact the Domino's Press Office on [phone], or call Hogarth on [phone].

 

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