Preliminary Results

Domino's Pizza UK & IRL PLC
28 February 2001


For immediate release                                          28 February 2001



                       Domino's Pizza UK & Ireland plc

Preliminary Results

For the year ended 31 December 2000



Domino's Pizza UK & Ireland plc ('Domino's Pizza' or the 'Company') is pleased
to announce its Preliminary Results for the year ended 31 December 2000. A
summary of key points follows.



Key points :



Financial

*         System sales up 19.9% to £76.1m (1999 : £63.5 m)



*         Group turnover up 27.0 % to £32.5m (1999 : £25.6m)



*         Operating profit up 52% to £2.4m (1999 : £1.6m)



*         Pre-tax profit up 61.8% to £2.2m (1999 : £1.4m)



*         Earnings per share

      Basic earnings per share up 68.1% to 3.21p (1999: 1.91p)

      Fully diluted earnings per share up 65.4% to 3.11p (1999: 1.88p)



Business

*         22 new stores opened (1999: 29)

       Total number of stores - 215



*         Acquisition of American Pizza Company Limited

      Total consideration of up to £1.85m in cash, 8 Domino's Pizza stores



*         New commissary and distribution facility opened in Ireland, feeding
rapidly expanding market



*         Launch of new heated delivery technology 'Heatwave' TM  supported by
successful terrestrial television advertising campaign



Board Changes



*         Stephen Hemsley appointed as Chief Executive





Stephen Hemsley, Chief Executive of Domino's Pizza commented :



'We have achieved another year of solid growth with significant increases in
both sales and operating profits. The Company also achieved market leadership
in terms of store numbers and maintained its leading position in terms of
sales. Our interactive television initiative and our terrestrial television
advertising campaign have contributed to the growth of our brand across the UK
and Ireland. Trading at the outset of 2001 has been buoyant and with such a
strong start to the year we are confident that Domino's will continue its
strong performance in 2001.'



For further information, please contact:



Contact:


Domino's Pizza                                            01908 580672
Stephen Hemsley, Chief Executive
Bernadette Eddisford, Press Office                        07909 928016

Buchanan Communications                                   020 7466 5000

Richard Oldworth / Isabel Petre



Notes to editors: -



Domino's Pizza Group Limited is a wholly owned subsidiary of Domino's Pizza UK
& IRL plc, which is quoted on the Alternative Investment Market of the London
Stock Exchange (Symbol: DOM). Domino's Pizza Group Limited is the UK's leading
pizza delivery brand by sales and holds the master franchise to own, operate
and franchise Domino's Pizza stores in the UK and Ireland. The first UK store
opened in 1985 and there are currently 215 stores in the UK and Ireland.



Domino's Pizza is world leader in pizza delivery and was founded in the United
States in 1960. There are currently more than 6,800 stores open across 65
international markets employing approximately 120,000 people.

                             Chairman's Statement



The way we see it, Domino's Pizza has been running a marathon for nearly seven
years and today we are miles ahead of the competition.



In late 1994, when we took over the company, we were barely off the starting
line. Today we're doing higher sales than those of our two nearest competitors
combined - and we've tripled our volume, from £27m in 1995 to more than £76m
at the end of 2000. Most importantly, the terrain ahead continues to look
good.



For us, the race is always a long-range one, never a sprint. So our decisions
are always made with long-term goals in mind. We have always resisted focusing
on short-term goals, which can only cloud the road ahead.



The finish line, if there ever is one, is years from now when we envision no
fewer than one thousand Domino's Pizza stores delivering hot and fresh pizza
to our ever-increasing and loyal customers around the UK and Ireland. That may
sound like a lofty goal, but its actually proportionate to the United States
which has close to 5,000 Domino's stores today and is still growing strong.



We project that one thousand stores in the UK could yield system-wide sales of
over £1/2 billion. That means not only more customers and higher turnover, but
also more funds with which to fuel our growth.



For example, all franchised stores contribute a percentage of their sales to a
National Advertising Fund (NAF). The NAF drives and sustains our continuous
regional and national marketing campaigns, including our sponsorship of The
Simpsons on Sky One, Royal Mail distribution and e-commerce initiatives. As
sales increase so does the NAF, which means we can continue to expand our
efforts and reach more and more customers.



The importance of advertising and promotion cannot be understated. In January
2001, with NAF contributions from a total of 215 stores, we launched our first
ever national, terrestrial TV advertising campaign. The advertisement was
themed to support the launch of our new heated delivery technology, HeatWave.
TM and was broadcast for 18 days in January. The campaign helped boost our
same-store-sales by 18% over the same period in 2000. We hope to add one or
more nationally televised commercials later this year.



Advertising will help to attract new customers, but only friendly, efficient
service and top quality pizza will keep those customers coming back. In 2000,
we put in place one of the most advanced systems for handling electronic
orders - further speeding the delivery of our customers' pizzas to their
homes. Now, when a customer orders on the Internet or via interactive TV, we
can send all of the necessary information to his or her local store in seconds
and a piping hot pizza will be delivered in 30-40 minutes.



Our new in-store computer system also means that, whether a pizza is ordered
by TV, computer or phone, the order is processed accurately, with virtually no
room for error.



But we haven't stopped with marketing and processing improvements. We have
also invested heavily in new product development. Today we have several
choices in side orders and pizza toppings. By late 2000, 45% of all pizza
orders taken at our stores were accompanied by a side order like the Chicken
Combo, which increases average ticket price and offers important variety to
pizza fans.



In keeping with our long-term strategy, we have built most of the
infrastructure needed to support the anticipated growth of the system over the
next seven years. In November 2000, we opened our Irish commissary and, in so
doing, we eliminated the need to ferry over the ingredients used by the
growing number of Irish stores. Last year, supplying the Irish market with
fresh food reduced our 2000 pre-tax earnings by approximately £200,000. We
expect to add enough new stores to this market in 2001 to eliminate this loss
completely. We also have plans to upgrade our facilities in the North of
England to enable us to operate a more cost-effective service to those stores
in the North and in Scotland.



Another means of ensuring that we achieve our goals is to constantly strive to
upgrade our stores. We have put in place a five-year rolling programme of
re-imaging which will result in an updated image for approximately 60 stores,
or 25% of the system, by the end of 2001.



Although we will continue to increase the number of stores we operate
ourselves, our prime emphasis will remain on expanding our base of franchised
stores. Essentially, the franchisee supplies the start-up capital, which
enables us to expand without the necessity to take on debt or call on
shareholders. This strategy will allow us to grow the number of stores at a
faster pace than if we opened and ran them at corporate level.



It is imperative that we reach our goals in the fastest, most secure way and
continue to grow our market leadership. It is also critical that we grow the
company within our own internal cash flow, avoiding the possibility of
diluting our current shareholders' ownership by constantly going to the equity
markets to raise capital. This policy will also allow us to share with our
stockholders the planned increase in earnings by increasing dividends.



Though we are always thinking about the future, we are just as proud of the
distance we have already travelled. The strong foundation on which the company
stands today is the result of much hard work, dedication and personal
sacrifice. We have been blessed to have my brother Gerry's leadership over
these last seven years and for that I thank him. Gerry, like all great team
builders, has ensured the continuation of the principles that drive our
success by choosing a worthy successor. We are confident in our new Chief
Executive, Stephen Hemsley, who we fully expect will lead us into the one
thousand store race and beyond.



But the success we have achieved to date - and what we expect to achieve in
the future - comes from every Franchisee and team member working within the
Domino's Pizza system. Without their energy and skills, this company would not
be able to report such outstanding success. In our view, every member of the
team is running this marathon with us and every one of them is running ahead
of the pack.



Thank you.



Colin Halpern

Chairman


Chief Executive's Report



I am pleased to report that, during our first full year as a publicly traded
company, Domino's Pizza UK & IRL plc ('the Company') has achieved another year
of solid growth with significant increases in both sales and operating
profits.  The Company also achieved market leadership in terms of the total
number of stores, and maintained a long held leadership as measured by sales.
E-commerce initiatives continued to develop and orders generated via these new
channels grew to contribute nearly 4% of system sales.



Sales



For the year ended 31 December 2000, system sales, which are the sales of all
stores in the Domino's system in the UK and Republic of Ireland, rose by 19.9%
to £76.1m from £63.5m.  The average weekly sales of all delivery stores grew
3.1% (1999: 2.0%) to £7,075 from £6,862.  After a slow start to the year,
following the Millennium celebrations, like-for-like sales growth reached 1.8%
by the half-year.  The acceleration in growth continued throughout the second
half. As a result, like-for-like growth for the whole year reached 4.8%. This
higher rate of growth has continued in the early weeks of the current year.



Trading Results



Group turnover, which represents the sales generated by the Company from
royalties, fees on new store openings, food sales and rental income, as well
as the turnover of corporately owned and operated stores, grew by 27.0% to £
32.5m from £25.6m. Gross profit margin increased to 47.5% from 41.3% mainly as
a result of the increased number of corporate stores operated.



Operating profits were up 52.0% to £2.4m from £1.6m.  If an adjustment were
made for the exceptional item incurred in 1999 this increase would be 19.2%.



In June 2000 the Company acquired the entire share capital of American Pizza
Company Limited ('APC') which owned and operated eight Domino's Pizza stores
within the Surrey and Berkshire areas for a maximum consideration of £1.85m
paid in cash. These stores were successfully converted to corporate ownership
and, in the remainder of the year, contributed £221,000 from sales of £1.57m.
The joint-venture company, Full House Restaurants Limited, continued to make
good progress in 2000 increasing operating profit by 27.5% to £65,000 from £
51,000 in the previous year.



During early 2000, the Company experienced escalation in the cost of
distribution to the stores.  This was particularly evident in Ireland with our
rapidly expanding store base. We therefore took the decision to bring forward
the opening of a new commissary and distribution facility in Naas, 18 miles
west of Dublin.  This significant increase in the fixed overheads further
increased the losses of servicing the Irish market.  As new stores are opened
throughout 2001 these losses will be reduced and we hope that, by the end of
2001 / early 2002, our Irish operation will be trading at a monthly profit.



The interest charge increased in the year to £0.3m  (1998:£0.2m) primarily as
a result of the expansion in corporate stores, together with the capital
expenditure on the facility in Ireland.  The charge also included a share of
the significant interest expense incurred by our joint-venture partner of £
26,000, which resulted from earlier debt financed store acquisitions.  The
total interest charge was covered 10.9 times by operating profit (1999: 7.4
times)



Profit before tax was up 61.8% to £2.2m from £1.3m. If an adjustment was made
for the exceptional item incurred in 1999 the increase would be 18.5%. A
significant reduction in the effective tax rate for the year from 38.9% in
1999 resulted mainly from the disallowance of the exceptional costs in the
earlier year, and the use of some of the tax losses acquired with the APC
transaction in the current year.  The effective tax rate on the underlying
profit has fallen to a sustainable 26.6% from 28.5% in 1999.



Earnings per share and dividend



Basic earnings per share were up 68.1% to 3.21 pence from 1.91 pence. If an
adjustment were made for the exceptional item incurred in 1999 the increase
would be 4.9%, reflecting the impact of the shares issued in the IPO in
November 1999. Fully diluted earnings per share increased by 65.4% to 3.11
pence from 1.88 pence. If an adjustment were made for the exceptional item
incurred in 1999 the increase would be 3.3%.



The Board is pleased to propose a final dividend for the year of 0.43 pence
per share. This brings the total dividend for the year to 0.80 pence per
share, a 12.7% increase over the previous year (1999: 0.71 pence per share),
and payable on 15th May 2001 to shareholders on the register on 20th April
2001. The proposed dividend for the year is 4.0 times (1999: 2.5 times)
covered by profits after tax, the level of cover indicated in our November
1999 prospectus.



Balance Sheet



Borrowings increased in 2000 as a result of the high level of capital
expenditure. At the year-end, the Company had net borrowings of £5.7m (1999: £
0.2m) against shareholders funds of £8.6m (1999: £7.4m), a capital gearing
ratio of 66.1% (1999: 2.1%).  The sharp increase in gearing reflects the use
of high cash balances held at the previous year-end which resulted from the
proceeds of the IPO only one month earlier.  We consider current gearing
levels to be sustainable particularly given our strong cashflow, significant
asset base and high level of interest cover.



System Expansion



In 2000, 22 new delivery stores (1999: 29 stores) were opened, 8 in the first
half of the year and 14 in the second half.  The unfavourable weather
conditions experienced in the final months of the year were responsible for
delaying the completion of a number of stores. Three of these delayed stores
opened in the first two weeks of 2001. It is the Company's intention to
accelerate the rate of new openings this year.



In line with the Company's previously stated intention, the relationship with
Alldays was terminated during 2000, and the remaining four stores were closed.
In addition, two of the experimental stores set up within Total petrol
stations were closed, leaving only one such store in the system at the
year-end. During 2000, three delivery stores were closed of which one was
reopened with a new franchisee by the year-end.  One store is expected to
re-open shortly and the remaining location has been sold.  As a result, there
were 214 delivery stores and one experimental store open at the year-end.



Corporate Stores



This was a year of transition and rapid expansion for corporate stores.  The
Company moved from being the operator of a limited number of stores that had
been accumulated on an opportunistic basis to become the largest single
operator of Domino's Pizza stores in the UK. During 2000, 18 corporate stores
were acquired, including eight within the acquisition of APC, at a total cost
of £3.1m; three new stores were opened and four stores were sold.  At the
year-end, 31 stores were owned and operated by the Company, with one further
store owned by the Company but operated by a franchisee.



This rate of growth exceeded expectations and created challenges for the
management of this division.  The recruitment and training of a considerable
number of people new to the Domino's business, to both operate and supervise
this growing estate, held back profits for most of the year.  It was not until
the final quarter of the year that the true potential of our investment became
apparent.



It is a credit to the management team of corporate stores that we now look
forward to 2001 with such optimism.  The challenge for 2001 is to continue
growing the estate whilst ensuring that the overhead is strictly controlled to
generate the required returns from this investment.



E-commerce



The Company has continued to maximise its substantial first-mover advantage in
the digital television and internet revolution.  The company remains the only
fast-food company to secure a presence on all major interactive TV platforms
and to offer nation-wide internet ordering. As stated above, sales generated
via these channels account for almost 4% of overall system sales, or
approximately £300,000 per month. Furthermore, the average order value on
e-commerce is now £16, an increase of 16% on 1999.



The ordering service on Open, launched by the Company in September 1999, is
now available in 4.7 million UK homes (January 2000: 2.1 million). During the
financial year, the Company completed deals with Telewest, NTL and On Digital
(On Net) interactive services, which currently reach approximately one million
UK households.  Additionally, deals were secured with Yes TV and HomeChoice
interactive television services to test video-on-demand services in London.



On the web throughout 2000, the Company significantly increased awareness of
online ordering with minimum advertising expenditure by way of affiliate deals
with, among others, AOL, Ask Jeeves, Freeserve and Skybuy. 29% of all
e-commerce sales are internet driven (1999: 18%).



The e-commerce infrastructure has now reached critical mass.  Whilst some
further investment will be necessary to ensure the platforms are sufficiently
robust to handle the expected continued growth in sales, the focus for the
coming year is to drive additional revenue through the infrastructure we have
created.



Strategy



The strategy set out at the IPO and in last year's report continues to be
fundamental to the growth of the Company.  The Company will continue to grow
store sales, particularly by the use of e-commerce; increase the coverage of
the system by an accelerated rollout programme, and enhance profitability by
the operation of more corporate stores.  By achieving these objectives, and
strictly limiting the growth in overheads, the Company will continue to
deliver growth in profitability and shareholder value whilst managing the cost
of the increasing royalty payable to Domino's Pizza in the US.



Current trading and prospects



Trading at the start of 2001 has been buoyant with total system sales in the
first eight weeks of the year 30.9% ahead of 2000.  A number of factors have
contributed to this but the single most important was the launch of the
Company's first terrestrial TV advertising campaign in support of our new
heated delivery technology, HeatWaveTM.  With such a strong start to the year
we are confident of another good performance in the current year.





Stephen Hemsley

Chief Executive




Group Profit and Loss Account

For the 53 weeks ended 31 December 2000


                                         Continuing  Operations
                                            Ongoing Acquisition  Total Proforma
                                               2000        2000   2000     1999
                                               £000        £000   £000     £000
Turnover
Turnover: group and share of
joint ventures' turnover                     32,083     1,569   33,652   26,758
                                                                
Less: share of joint ventures' turnover      (1,121)       -    (1,121)  (1,148)
                                                                        

Group turnover                               30,962     1,569   32,531   25,610
Cost of sales                               (16,568)     (503) (17,071) (15,024)

Gross profit                                 14,394     1,066   15,460   10,586
Distribution costs                           (4,900)     (509)  (5,409)  (3,340)
Administrative expenses                      (7,602)     (336)  (7,938)  (5,695)
Other operating income                          279         -      279       23

Group operating profit                        2,171       221    2,392    1,574

Share of operating profit in joint               70         -       70       57
venture
Amortisation of goodwill on joint                (5)        -      (5)      (6)
venture

                                                 65         -       65       51
Total operating profit: group and share
of joint venture
                                              2,236       221    2,457    1,625
Loss on disposal of tangible
And intangible fixed assets                       -         -        -      (62)
                                              2,236       221    2,457    1,563
Interest receivable                              60         -       60       56
Interest payable and similar charges           (322)       (6)    (328)    (266)

Profit on ordinary activities
before taxation                               1,974       215    2,189    1,353
Tax on profit on ordinary activities           (581)        -     (581)    (526)

Profit for the financial year                 1,393       215    1,608      827

Dividends on equity shares                                       (400)    (331)

Profit retained for the financial year                          1,208      496

Earnings per share -  basic                                      3.21p    1.91p
                   -  diluted                                    3.11p    1.88p






There are no recognised gains or losses other than those included in the
profit and loss account.


GROUP BALANCE SHEET

At 31 December 2000

                                                                   2000    1999
                                                                   £000    £000
Fixed assets
Intangible assets                                                 1,992     594
Tangible assets                                                  11,459   7,328
Investments
Investments in joint venture:
Share of assets                                                     739     696
Share of liabilities                                               (491)   (475)

                                                                    248     221
Investment properties                                                 -     373

                                                                    248     594

                                                                 13,699   8,516
Current assets
Stocks                                                            1,194     772
Debtors
Amounts falling due within one year                               5,922   3,400
Amounts falling due after more than one year                      1,283     612

                                                                  7,205   4,012

Cash at bank and in hand                                            998   4,581
                                                                  9,397   9,365

Creditors: amounts falling due within one year                   (8,103) (5,852)
Net current assets                                                1,294   3,513

Total assets less current liabilities                            14,993  12,029

Creditors: amounts falling due after more than one               (6,429) (4,617)
year

                                                                  8,564   7,412
Capital and reserves
Called up share capital                                           2,500   2,500
Share premium account                                             2,046   2,102
Profit and loss account                                           4,018   2,810

Equity shareholders' funds                                        8,564   7,412








GROUP STATEMENT OF CASHFLOWS

AT 31 December 2000


                                                                  2000     1999

                                                                  2000     1999
                                                                  £000     £000

Net cash inflow from operating activities                        1,494    2,489
Returns on investments and servicing

of finance
Interest received                                                   60       56
Interest paid                                                     (283)    (205)
Interest element of finance lease payments                         (19)     (30)

                                                                  (242)    (179)
Taxation
Corporation tax paid                                              (594)    (700)
Capital expenditure and financial investment
Payments to acquire intangible fixed assets                        (54)     (40)
Payments to acquire tangible fixed assets                       (4,394)  (1,850)
Payments to acquire investment properties                            -     (175)
Receipts from sales of tangible and intangible fixed assets        391      167
                                                                (4,057)  (1,898)
Acquisitions and disposals
Purchase of subsidiary undertaking                              (1,514)        -
Net overdraft acquired with subsidiary                            (194)        -
                                                                (1,708)        -

Equity dividends paid                                             (329)    (435)

Net cash outflow before financing                               (5,436)    (723)

Financing
Issue of ordinary share capital                                      -    3,825
Share issue costs                                                  (56)    (598)
New long-term loans                                              3,520    4,500
Repayments of long-term loans                                   (1,500)  (3,000)
Repayment of parent undertaking loan                                 -     (400)
Repayment of capital element of finance leases -
 And hire purchase contracts                                      (111)    (105)

                                                                 1,853    4,222

(Decrease)/increase in cash                                     (3,583)   3,499




NOTES TO THE ACCOUNTS

at 31 December 2000



1. Accounting Policies

Basis of preparation

The accounts are prepared under the historical cost convention and in
accordance with applicable accounting standards.







2.        notes to the statement of cash flows

Reconciliation of operating profit to net cash inflow from operating
activities


                                                                       Proforma
                                                             2000          1999
                                                             £000          £000

Operating profit                                            2,392         1,574
Depreciation charge                                           768           586
Amortisation charge                                            88            54
(Profit) on sale of tangible and intangible

 fixed assets                                                (279)          (22)
(Increase) in stocks                                         (417)         (103)
(Increase) in debtors                                      (2,340)         (547)
Increase in creditors                                       1,282           947

                                                            1,494         2,489



3. DIVIDENDS



The Board is pleased to propose a final dividend for the year of 0.43 pence
per share. This brings the total dividend for the year to 0.80 pence per
share, a 12.7% increase over the previous year (1999: 0.71 pence per share),
and payable on 15th May 2001 to shareholders on the register on 20th April
2001. The proposed dividend for the year is 4.0 times (1999: 2.5 times)
covered by profits after tax, the level of cover indicated in our November
1999 prospectus.


                                                                       Proforma
                                                           2000            1999
                                                           £000            £000
Equity dividends on ordinary shares:
Interim paid  0.37p (1999: 0.42p)                           185             185
Final proposed  0.43p (1999: 0.29p)                         215             146

                                                            400             331

4. earnings per ordinary share



The calculation of basic earnings per ordinary share is based on earnings of £
1,608,000 (1999: £827,000) and on 50,000,000 (1999: 43,245,384) ordinary
shares.  The diluted earnings per share is based on 51,645,120 (1999:
43,941,773) 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.



5. FINANCIAL INFORMATION

The financial information set out in the announcement does not constitute the
Company's statutory accounts for the 53 weeks ended 31 December 2000 or 26
December 1999. The financial information for the 52 weeks ended 26 December
1999 is derived from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The auditors reported on those
accounts; their report was unqualified and did not contain a statement under
section 237(2) or (3) of the Companies Act 1985. The statutory accounts for
the 53 weeks ended 31 December 2000 will be finalised on the basis of the
financial information presented by the Directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the
Company's Annual General Meeting.