Interim Results
Domino's Pizza UK & IRL PLC
25 July 2006
For Immediate Release 25 July 2006
DOMINO'S PIZZA UK & IRL plc
RESULTS FOR THE TWENTY-SIX WEEKS ENDED 2 JULY 2006
Domino's Pizza UK & IRL plc ('Domino's Pizza' or the 'Group'), the UK and
Ireland leader in pizza delivery, announces its results for the twenty-six weeks
ended 2 July 2006.
Highlights
• Profit before tax* increased 24.5% to £6.3m (2005: £5.0m). Unadjusted
profit before tax of £6.3m (2005: £5.5m) increased by 13.4%.
• Earnings per share*:
- Basic earnings per share up 31.2% to 9.18p (2005: 7.00p)
- Diluted earnings per share up 27.7% to 8.77p (2005: 6.87p).
• Interim dividend increased 33.9% to 4.15p per share (2005: 3.10p).
• 21 new stores opened in the period (2005: 23 stores). No stores were
closed (2005: nil) resulting in a total of 428 stores at the period end
(2005: 380 stores).
• Like-for-like sales in 357 mature stores up 8.3% (2005: 8.4% in 317
stores).
• System sales increased 18.3% to £114.8m (2005: £97.1m).
• E-commerce sales up 46.9% to £9.6m (2005: £6.5m). E-commerce now
represents 12.3% of our delivered pizza sales in the UK.
• Cash at bank and in hand of £8.6m (2005: £8.5m).
* Before 2005 accelerated LTIP charge of £0.3m and exceptional profit on sale of
corporate stores of £0.8m.
Stephen Hemsley, Chief Executive of Domino's Pizza UK & IRL plc, commented:
'The focus of your Group in the first twenty-six weeks of 2006 has continued to
be the roll-out of the Domino's Pizza system in the UK and Ireland. This has
seen us further extend our market leadership in the fast-growing pizza delivery
segment both in terms of the number of stores and total system sales. Five of
the top ten most successful Domino's Pizza stores in the world, as measured by
system sales performance, are now within the markets we manage.
'Like-for-like sales in the 357 mature stores grew by 8.3% and e-commerce
channels continue to perform very well. The strong cash generation of your
Group, and the anticipated completion of a capital re-organisation, should allow
for further share buy-backs in the second half. We are confident that earnings
will meet market expectations for the year.'
For further information, please contact:
Domino's Pizza:
Stephen Hemsley - Chief Executive 01908 580604
Lee Ginsberg - Finance Director 01908 580611
Bernadette Ahmed - Press Office 07909 928016
Hogarth Partnership Limited:
Chris Matthews, Fiona Noblet, Anthony Arthur 020 7357 9477
Notes to editors:
Domino's Pizza UK & IRL plc holds the exclusive master franchise to own, operate
and franchise Domino's Pizza stores in the UK and Ireland. The Group is the
leading player in the UK and Ireland's fast-growing pizza delivery market. The
first UK store opened in 1985 and the first Irish store opened in 1991.
There are 428 stores in the UK and Ireland. Of these, 345 stores are in England,
31 are in Scotland, 14 are in Wales, 11 are in Northern Ireland and 27 are in
the Republic of Ireland.
Founded in 1960, Domino's Pizza is the recognised world leader in pizza
delivery. Through its primarily franchised system, Domino's Pizza operates a
global network of more than almost 8,000 stores in 55 countries.
For photography visit www.dominos.uk.com/media or contact Hogarth on 020 7357
9477.
CHIEF EXECUTIVE'S STATEMENT
Introduction
The focus of your Group in the first twenty-six weeks of 2006 has continued to
be the roll-out of the Domino's Pizza system in the UK and Ireland. This has
seen us further extend our market leadership in the fast-growing pizza delivery
segment both in terms of the number of stores and total system sales.
System sales, which are the sales of all stores in the Domino's system in the UK
and Republic of Ireland, grew strongly in the period driven by 21 new store
openings, strong advertising campaigns financed by additional contributions from
our franchisees and the World Cup at the end of the period. Your Group is
pleased to report that five of the top ten most successful Domino's Pizza stores
in the world, as measured by system sales performance, are within the markets we
manage.
This very impressive record can only be achieved if our stores - and the
franchisees and team members who own and operate them - consistently fulfil our
brand's promise to customers. We, therefore, aim for growth that is coupled with
continuous focus on our operational standards. Accordingly, as your Group
invests in expansion, equal vigour is being directed at making improvements to
our already high in-store standards.
I am encouraged to see that the additional resource we have put into providing
more operational support to franchisees and stores is having positive results so
quickly. This is a big investment for your Group but one that is essential if we
are to build a respected system of 1,000 stores in partnership with our
franchisees.
We firmly believe that by remaining focussed on the detail of our growing
business we will unlock significant further potential.
Sales
System sales rose by 18.3% to £114.8m (2005: £97.1m) in the twenty-six weeks
ended 2 July 2006. Like-for-like sales in the 357 mature stores grew by 8.3%
(2005: 8.4% in 317 stores).
In the period, four highly effective campaigns, funded by the National
Advertising Fund ('NAF'), have succeeded in driving system sales. One of these
campaigns involved the launch of our first Simpsons-branded pizza, the Ay
Carumba Fajita pizza, which was the first outcome of our two-year licensing
arrangement with the TV show. This campaign was swiftly followed by the launch
of the Football Fanatic pizza, promoted by a TV advertisement featuring Michael
Owen. This enhanced advertising activity was made possible by our franchisees'
agreement to increase their contributions to the NAF from 4% to 5% of their
system sales.
As anticipated, the World Cup had a positive impact despite most of the
tournament coinciding with the first spell of very hot weather which would
normally depress our system sales.
E-commerce generated another record contribution to system sales in the first
half, accounting for 12.3% of total UK delivered pizza sales (2005: 10.6%).
Sales via e-commerce channels were up 46.9% over last year (2005: 64.0%). A
significant milestone was achieved in the first half when over £100,000 of
online sales were transacted in a single night for the first time since the
platform launched in 1999. Research predicts that by 2010 a fifth of our
delivered pizza sales will be generated via e-commerce platforms. If this can be
achieved, economies of scale in the cost of order-taking at store level should
improve franchisee profitability as these web-generated orders go straight into
the stores' ordering systems.
As mentioned above, today's challenge is that of growth with continuing
improvement. The work we are undertaking to further improve standards, led by
Chief Operating Officer Chris Moore, has had a measurable impact on system sales
growth and, in turn, has influenced existing franchisees to expand. In the first
half, we presented all stores with a challenge to raise already high product,
service and image standards with the effect that the most significant sales
improvements were achieved in stores that had the greatest improvements in
service times. We are encouraged by these initial results and intend to continue
to incentivise franchisees to keep focussed on service improvements.
System Expansion
During the first twenty-six weeks of 2006, 21 new stores were opened (2005: 23
stores). Whilst marginally below our target we remain on track for a total of 50
new openings in total for the year provided we can secure the necessary planning
consents. The changes to the planning regime resulting from the introduction of
the A5 category continue to present challenges and uncertainty over the timing
of new openings. To address this, further resources will be committed to this
area. There were no store closures in the period (2005: nil). As a result, the
store count at 2 July 2006 was 428 (2005: 380 stores).
Continued expansion through partnership with our high calibre franchisees, who
are close to their local markets, continues to be the most successful means of
growing the Domino's Pizza system in the UK and Ireland. As a result, the first
half of the year saw your Group dispose of two corporately-owned stores. Plans
are well-progressed to dispose of the remaining corporate stores.
In the first half, 76% of new store openings were with existing franchisees,
underlining our strategy of managing the number of franchisees in the system.
Each franchisee now has an average of 2.78 stores (2005: 2.75) and this is
expected to increase in the second half of the year. By encouraging our leading
franchisees to open additional stores, we will be able to improve standards and
manage both our cost base and resultant operational gearing as we move towards
our goal of 1,000 stores.
New store openings since the start of the year extended our presence
predominantly in regions outside the South East of England and included three
openings in the Republic of Ireland and six in the North of England.
Trading Results
Group turnover, which includes sales generated from royalties, fees, food sales
and rental income as well as a small element of turnover from corporately-owned
and operated stores, grew by 11.4% to £45.1m (2005: £40.5m). Group turnover was
moderated by the sale of 13 corporate stores into the franchise system in June
last year which contributed £2.8m towards turnover in the first half of 2005.
Group operating profit, before the accelerated LTIP charge and the exceptional
profit resulting from the sale of corporate stores, was up 24.5% to £6.3m (2005:
£5.1m). In 2005 an accelerated FRS 20 charge of £0.3m relating to the early
vesting of the Long Term Incentive Plan was incurred. This was offset in that
period by an exceptional profit of £0.8m from the sale of a number of corporate
stores. Unadjusted group operating profit of £6.3m (2005: £4.8m) increased by
32.6%.
Economies of scale in both the commissary and central overheads continue to
allow us to grow profits at a faster rate than the 18.3% increase in system
sales despite the annualised effect of the additional operations costs taken on
during 2005.
The strategic objective of opening more new stores with an increasing proportion
of existing franchisees will, as mentioned earlier, assist in keeping our cost
base under control as we grow however, in the short term, this will generate
lower fee income.
The commissary rebate scheme, launched last year to help our franchisees
overcome the burden of new external cost pressures, continued in the first half
of 2006. This scheme enhances the profitability of franchisees who achieve
enhanced like-for-like sales targets and fully comply with all our standards.
The cost of this rebate, whilst higher than budgeted in the first half of 2006
due to stronger than expected like-for-like sales increases, was £0.3m (2005:
£0.2m).
Profit before tax and the accelerated LTIP charge of £0.3m and exceptional
profit on sale of corporate stores of £0.8m, was up 24.5% to £6.3m (2005:
£5.0m). Unadjusted profit before tax was £6.3m (2005: £5.5m), an increase of
13.4%. The tax rate of 27% (2005: 26%) is lower than the statutory Corporation
tax rate primarily due to the tax relief available on the exercise of share
options but marginally higher than 2005 due to the tax relief on the profit from
the sale of corporate stores last year.
Profit after tax before the accelerated LTIP charge and the exceptional gain
noted above was up 28.6% to £4.6m (2005: £3.6m).
Earnings per share and dividend
Basic earnings per share before the accelerated LTIP charge of £0.3m and
exceptional profit on sale of corporate stores of £0.8m were up 31.2% to 9.18
pence (2005: 7.00 pence). Diluted earnings per share before the accelerated LTIP
charge of £0.3m and exceptional profit on sale of corporate stores of £0.8m
increased by 27.7% to 8.77 pence (2005: 6.87 pence).
Unadjusted basic earnings per share were up 15.2% to 9.18 pence (2005: 7.97
pence) and diluted earnings per share were up 12.1% to 8.77 pence (2005: 7.82
pence).
In line with our strategy of returning cash not required for the growth and
expansion of the business to shareholders, we are pleased to declare an increase
of 33.9% in the interim dividend to 4.15 pence per share (2005: 3.10 pence per
share). This dividend will be paid on 31 August 2006 to shareholders on the
register on 4 August 2006.
Cash Flow & Balance Sheet
Our cash position remains strong, with operating activities generating net cash
of £7.3m (2005: £4.0m).
In the first twenty-six weeks of the year, options over 219,000 shares were
exercised generating a cash inflow of £0.3m (2005: £0.3m). During the period,
the Group did not purchase any of its own shares (2005: 400,000 shares at a cost
of £1.1m). We are currently proceeding with the necessary capital
re-organisation to enable the Group to have sufficient distributable reserves to
facilitate further share buy-backs. If this scheme is approved, these buybacks
should take place in the second half.
The Group continues to provide franchisees with leasing facilities for new
equipment and refits through its wholly owned subsidiary DP Capital Limited. In
the first twenty-six weeks of the year, new advances of debt facilities of £1.0m
were made available to DP Capital Limited which were matched by similar
repayments resulting in borrowings of £2.7m (2005: £2.6m) at the half year.
As at 2 July 2006, the Group had cash-in-hand of £8.6m (2005: £8.5m), which
taken together with the leasing borrowings noted above and the Employee Benefit
Trust ('EBT') loan of £7.5m (2005: £6.4m), gave consolidated net borrowings of
£1.6m (2005: £0.5m). After the deduction of the cost of the shares held in the
EBT, shareholders' funds were £15.1m (2005: £17.1m), resulting in a gearing
ratio of 10.6% (2005: 3.1%).
Board Composition
Michael Shallow and Dianne Thompson CBE joined the Board as Non-Executive
Directors on 5 January and 22 February respectively. We welcome both to the
Board which now benefits from an equal proportion of Non-Executive Directors and
Executive Directors.
Outlook
As outlined at our Annual General Meeting, we anticipate that like-for-like
sales growth in the second half will be more modest than the increases achieved
year-to-date given the demanding comparatives with which we are faced. However,
as is our normal pattern, new store openings will accelerate in the second half
generating increased system sales and fee income. The strong cash generation of
your Group, and the anticipated completion of a capital re-organisation, should
allow for further share buy-backs in the second half. We are confident that
earnings will meet market expectations for the year.
STEPHEN HEMSLEY
Chief Executive
GROUP PROFIT AND LOSS ACCOUNT
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
Notes £000 £000 £000
TURNOVER
Turnover: group and share of
joint ventures' turnover 46,888 41,780 85,004
Less: share of joint ventures'
turnover (1,774) (1,278) (3,344)
------- ------- -------
GROUP TURNOVER 2 45,114 40,502 81,660
Cost of sales (27,534) (23,612) (48,778)
------- ------- -------
GROSS PROFIT 17,580 16,890 32,882
Distribution costs (3,981) (4,752) (8,538)
+----------------------------------+
Administration expenses - | |
pre accelerated LTIP charge | (7,336) (7,135) (13,504)|
Accelerated LTIP charge | - (313) (626)|
+----------------------------------+
Administrative expenses (7,336) (7,448) (14,130)
------- ------- -------
GROUP OPERATING PROFIT 6,263 4,690 10,214
Share of operating profit in
joint ventures 70 82 179
Amortisation of goodwill on
joint ventures (8) (3) (15)
------- ------- -------
62 79 164
TOTAL OPERATING PROFIT: GROUP
AND SHARE OF JOINT VENTURES 6,325 4,769 10,378
Profit on sale of fixed assets 10 142 206
Profit on sale of subsidiary
undertakings - 670 670
------- ------- -------
PROFIT ON ORDINARY ACTIVITIES
BEFORE INTEREST AND TAX 6,335 5,581 11,254
------- ------- -------
Interest receivable 162 263 273
Interest payable and similar
charges (224) (313) (358)
------- ------- -------
PROFIT ON ORDINARY ACTIVITIES
BEFORE TAXATION 6,273 5,531 11,169
Tax on profit on ordinary
activities 3 (1,674) (1,438) (2,922)
------- ------- -------
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION 4,599 4,093 8,247
Minority interests 23 - 8
------- ------- -------
PROFIT FOR THE FINANCIAL YEAR
ATTRIBUTABLE TO MEMBERS OF THE
PARENT COMPANY 4,622 4,093 8,255
------- ------- -------
Earnings per share - basic 5 9.18p 7.97p 16.25p
- diluted 8.77p 7.82p 15.47p
There are no recognised gains or losses other than those included in the Profit
and Loss Account.
GROUP BALANCE SHEET
(Unaudited) (Unaudited)
At At At
2 July 3 July 1 January
2006 2005 2006
Notes £000 £000 £000
FIXED ASSETS
Intangible assets 1,506 1,428 1,326
Tangible assets 13,643 13,483 13,593
Investment in joint ventures 564 421 451
------- ------- -------
15,713 15,332 15,370
------- ------- -------
CURRENT ASSETS
Stocks 2,199 2,372 2,186
Debtors 13,090 13,518 12,921
Cash at bank and in hand 8,593 8,496 5,885
------- ------- -------
23,882 24,386 20,992
CREDITORS: amounts falling due
within one year (14,033) (13,941) (13,742)
------- ------- -------
NET CURRENT ASSETS 9,849 10,445 7,250
------- ------- -------
TOTAL ASSETS LESS CURRENT
LIABILITIES 25,562 25,777 22,620
CREDITORS: amounts falling due
after more than one year (9,232) (8,060) (9,085)
PROVISION FOR LIABILITIES AND
CHARGES (1,273) (623) (1,447)
------- ------- -------
15,057 17,094 12,088
======= ======= =======
CAPITAL AND RESERVES
Called up share capital 6 2,658 2,748 2,645
Share premium account 6 4,927 4,514 4,677
Treasury shares held by Employee
Benefit Trust 6 (4,216) (6,360) (7,500)
Capital Redemption Reserve 6 171 60 171
Profit and loss account 6 11,429 16,132 12,013
------- ------- -------
Equity shareholders' funds 14,969 17,094 12,006
Minority interest 88 - 82
------- ------- -------
15,057 17,094 12,088
======= ======= =======
GROUP STATEMENT OF CASH FLOWS
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
Notes £000 £000 £000
NET CASH INFLOW FROM OPERATING
ACTIVITIES 7 7,313 4,005 12,674
------- ------- -------
RETURNS ON INVESTMENTS AND
SERVICING OF FINANCE
Interest received 152 263 273
Interest paid (200) (195) (307)
Interest element of finance
lease rental payments (2) (2) (4)
------- ------- -------
(50) 66 (38)
------- ------- -------
TAXATION
Corporation tax paid (1,670) (518) (1,549)
------- ------- -------
CAPITAL EXPENDITURE AND
FINANCIAL INVESTMENT
Payments to acquire intangible
fixed assets (317) (381) (395)
Payments to acquire tangible
fixed assets (1,269) (1,255) (2,246)
Receipts from sales of tangible
and intangible fixed assets 408 407 576
Receipts for repayment of joint
venture loan 31 27 60
Payment to acquire finance lease
assets & advance of franchise loans (523) (576) (1,166)
Receipts from repayment of finance
lease and franchise loans 685 676 1,172
------- ------- -------
(985) (1,102) (1,999)
ACQUISITIONS AND DISPOSALS
Sale of subsidiary undertakings
- net of costs - 3,586 3,354
Utilisation of provisions
relating to the disposal of
subsidiary undertakings (203) - (309)
Cash balances disposed of with
subsidiary undertakings - - (5)
Purchase of subsidiary
undertaking and minority interest - - 8
------- ------- -------
(203) 3,586 3,048
======= ======= =======
DIVIDEND PAID (2,115) (1,536) (3,169)
------- ------- -------
NET CASH INFLOW BEFORE FINANCING 2,290 4,501 8,967
------- ------- -------
FINANCING
Issue of shares 263 301 472
New long-term loans 857 588 2,146
Repayments of long-term loans (696) (610) (1,146)
Repayment of capital element of
finance leases and hire purchase
contracts (6) (12) (16)
Purchase of shares by Employee
Benefit Trust - - (1,140)
Purchase of own shares - (1,096) (8,222)
------- ------- -------
418 (829) (7,906)
------- ------- -------
INCREASE IN CASH 2,708 3,672 1,061
======= ======= =======
NOTES TO THE INTERIM REPORT
1. BASIS OF PREPARATION OF INTERIM FINANCIAL INFORMATION
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the
fifty-two weeks ended 1 January 2006. The taxation charge is calculated by
applying the directors' best estimate of the annual tax rate to the profit
for the period. All other accounting polices set out in the accounts for the
fifty-two weeks ended 1 January 2006 were applied for the purposes of this
statement.
Basis of consolidation
The Group accounts consolidate the accounts of Domino's Pizza UK & IRL plc
and all its subsidiary undertakings drawn up to the nearest Sunday of the
month end.
2. TURNOVER AND SEGMENTAL ANALYSIS
The principal components of turnover are royalties received, commissary and
equipment sales, sale of franchises, pizza delivery sales, rental income on
leasehold and freehold properties and finance lease interest income, stated
net of value added tax. All of the turnover is in one continuing business
segment being the development of the Domino's Pizza Franchise System and
originates in the United Kingdom and the Republic of Ireland. The directors
believe that full compliance with the requirements of SSAP 25 'Segmental
Reporting' would be seriously prejudicial to the interests of the Group as
it would require disclosure of commercially sensitive information. The
requirements of SSAP 25 with which the Group do not comply are the
disclosure of profit before interest and tax and net operating assets by
segment.
Geographical
analysis Turnover by origin Turnover by destination
Unaudited Unaudited Unaudited Unaudited
26 weeks 26 weeks 52 weeks 26 weeks 26 weeks 52 weeks
ended ended ended ended ended ended
2 July 3 July 1 January 2 July 3 July 1 January
2006 2005 2006 2006 2005 2006
£000 £000 £000 £000 £000 £000
Group turnover
United Kingdom
- Royalties
and sales to
franchisees 38,295 34,427 69,327 37,698 33,895 68,253
- Rental income
on leasehold
and freehold
property 3,430 2,923 6,003 3,430 2,923 6,003
- Finance lease
income 148 143 280 148 143 280
------- ------- ------- ------- ------- ------
Total United
Kingdom 41,873 37,493 75,610 41,276 36,961 74,536
Republic of
Ireland
- Royalties
and sales to
franchisees 3,071 2,819 5,688 3,668 3,351 6,762
- Rental income
on leasehold
and freehold
property 170 190 362 170 190 362
------- ------- ------- ------- ------- ------
Total Republic
of Ireland 3,241 3,009 6,050 3,838 3,541 7,124
------- ------- ------- ------- ------- -------
Total Group 45,114 40,502 81,660 45,114 40,502 81,660
Share of Joint
Ventures'
turnover -
United Kingdom 1,774 1,278 3,344 1,774 1,278 3,344
------- ------- ------- ------- ------- -------
Total Turnover 46,888 41,780 85,004 46,888 41,780 85,004
======= ======= ======= ======= ======= =======
3. TAXATION
The taxation charge is made up as follows:
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
£000 £000 £000
UK & Republic of Ireland corporation tax:
Profit for the period 1,827 1,389 3,082
Joint Venture taxation charge 23 20 49
Adjustment in respect of the previous
period (238) - (213)
Republic of Ireland corporation tax -
12.5% 62 29 60
------- ------- -------
Total corporation tax 1,674 1,438 2,978
======= ======= =======
UK deferred tax
Origination and the reverse of timing
differences in respect of:
Profit in the period - - (56)
------- ------- -------
Total deferred tax - - (56)
------- ------- -------
Tax on profit on ordinary activities 1,674 1,438 2,922
======= ======= =======
4. DIVIDENDS PAID AND PROPOSED
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
£000 £000 £000
Declared and paid during the year
Final dividend for 2004 3.05p (2003: 2.18p) - 1,536 1,531
Interim dividend for 2005 3.10p (2004: 2.20p) - - 1,638
Final dividend for 2005 4.15p (2004: 3.05p) 2,115 - -
------- ------- -------
2,115 1,536 3,169
======= ======= =======
The Directors propose an interim dividend of 4.15p per share of £2,119,000
(2005: 3.10p £1,593,000). The liability in respect of the 2006 interim
dividend has not been accrued for at 2 July 2006, in accordance with FRS 21
Events after the balance sheet date.
5. EARNINGS PER SHARE
The calculation of basic earnings per ordinary share is based on earnings of
£4,622,000 (2005: £4,093,000) and on 50,363,976 (2005: 51,379,161) ordinary
shares.
The diluted earnings per share is based on 52,687,922 (2005: 52,337,175)
ordinary shares which takes into account theoretical ordinary shares that
would have been issued, based on average market value if all outstanding
options were exercised.
Reconciliation of basic and diluted earnings per share
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
£000 £000 £000
Ordinary shares - basic earnings per
share 50,363,976 51,379,161 50,810,785
Dilutive share options 1,736,459 958,014 832,056
Reversionary interests 587,487 - 1,725,937
------- ------- -------
Ordinary shares - diluted earnings per
share 52,687,922 52,337,175 53,368,778
======= ======= =======
On 27 February 2006, 2,825,000 reversionary interests vested and 1,909,334
shares were transferred from the Employee Benefit Trust to satisfy the
vesting of the interests. These shares are included in the basic earnings
per calculation for the 26 weeks ending 2 July 2006. Reversionary interests
have been granted over. 2,075,000 shares, which have not vested at 2 July
2006.
6. RECONCILIATION OF SHAREHOLDERS' FUNDS AND MOVEMENTS ON RESERVES
Share Capital Treasury Profit Total
Share Premium Redemption Shares held & Loss Shareholders'
Capital Account Reserve by EBT Account Funds
£000 £000 £000 £000 £000 £000
At 1 January
2006 2,645 4,677 171 (7,500) 12,013 12,006
Proceeds
from share
issue 13 250 - - - 263
Profit for
the 26 weeks
ending 2 July
2006 - - - - 4,622 4,622
Share option
and LTIP
charge - - - - 193 193
Vesting of
LTIPs - - - 3,284 (3,284) -
Dividends - - - - (2,115) (2,115)
------- ------- ------- ------- ------- -------
At 2 July
2006 2,658 4,927 171 (4,216) 11,429 14,969
======= ======= ======= ======= ======= =======
On 27 February 2006, 2,825,000 reversionary interests vested and 1,909,334
shares were transferred from the Employee Benefit Trust to satisfy the
vesting of the interests. These shares had a historical cost of £1.72 per
share (total historical cost - £3,284,054).
7. NOTES TO THE STATEMENT OF CASHFLOWS
Reconciliation of operating profit to net cash flows from operating
activities
(Unaudited) (Unaudited)
26 weeks 26 weeks 52 weeks
ended ended ended
2 July 3 July 1 January
2006 2005 2006
£000 £000 £000
Operating profit 6,263 4,690 10,214
Depreciation charge 850 752 1,508
Amortisation charge 77 76 131
Share option and LTIP charge 193 479 963
(Increase)/decrease in debtors (406) (452) 337
(Increase)/decrease in stocks (13) 304 489
Increase/(decrease) in creditors 349 (1,844) (968)
------- ------- -------
7,313 4,005 12,674
======= ======= =======
8. PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information contained in this statement does not constitute
statutory accounts as defined in Section 240 of the Companies Act 1985. The
financial information for the full preceding year is based on the statutory
accounts for the fifty-two weeks ended 1 January 2006. Those accounts, upon
which the auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.
This report is being sent to all registered shareholders. Copies can also be
obtained from the Registered Office at Domino's House, Lasborough Road,
Kingston, Milton Keynes MK10 OAB.
INDEPENDENT REVIEW REPORT TO DOMINO'S PIZZA UK & IRL PLC
Introduction
We have been instructed by the company to review the financial information for
the twenty-six weeks ended 2 July 2006, which comprises the Group Profit and
Loss Account, the Group Balance Sheet, the Group Cash Flow Statement and the
related notes 1 to 8. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the company having regard to guidance contained in
Bulletin 1999/4 'Review of interim financial information' issued by the Auditing
Practices Board. To the fullest extent permitted by the law, we do not accept or
assume responsibility to anyone other than the company, for our work, for this
report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report as required by the AIM Rules
issued by the London Stock Exchange.
Review work performed
We conducted our review having regard to the guidance contained in Bulletin 2004
/1 'Review of interim financial information' and in accordance with
International Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board for use in the United Kingdom. A review consists principally of
making enquiries of management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the twenty-six
weeks ended 2 July 2006.
Ernst & Young LLP
Registered Auditor
Luton
24 July 2006
This information is provided by RNS
The company news service from the London Stock Exchange
Friday, 31st May 2024
COMPANIES COVERED:
Latest directors dealings
- 1 day ago FDM Group (Holdings)
- 1 day ago Neo Energy Metals
- 1 day ago DCC (CDI)
- 1 day ago 3i Group
- 1 day ago 3i Group