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No idea. They must havebeen talking for some time prior to the announcement and have a strong outline of a deal, I cannot see that this would be monopolistic in any way for the polish authorities.
so, we're looking for 3 or 9 months waiting time for deal?? what's your opinion on timing
Hoping that the share price increases to 12p plus when this comes back to market. Unsure what happens longer term.
Interesting to see how the volume of outlets impacts the master franchise arrangements, i can see synergies elsewhere.
But RetiredBanker with respect if that was the intention then surely Dominion SA or rather it's PE shareholder would just make a cash bid for DPP, and subsequently delist. The premium offered (if any) would presumably go some way to paying off existing shareholders for the future synergies. Personally I think this would be a much cleaner transaction. Instead what is proposed has the potential to be more invidious. Under a classic reverse DPP will be buying Dominion SA by issuing its own shares. Now of course the million dollar question is the valuation of Dominion. What is implied is that Dominion shareholders will have the greater resulting holding, and DPP shareholders will be in the minority. To my mind that suggests that DPP will remain listed and existing shareholders will remain exposed to any potential synergies / upside. However, the key question goes back to the relative valuation. Crudely it looks like the two estates are roughly similar in size. Presumably Dominion's is more mature / profitable and hence why it will enjoy a (far) larger share of the relative valuation and why DPP shareholders will be in the minority. Now I don't want to cast aspersions against Dominion and its shareholder. The relative valuations will presumably have been blessed by a quasi independent advisor(s) and will ultimately have to be blessed by DPP shareholders. But this is far from a clean outcome.
As an aside (and at quick glance) I fail to fully understand the synergy logic. The RNS talks of rebranding the Dominion chain as Domino's. But a quick glance at their website suggests their estate is very much focused on eat in rather than take away. So very different to the Dominos model. Their may well be synergies from reduced competition, reducing HQ staff, procurement, marketing, reduced store overlap etc. But the two chains don't seem natural bedfellows. Unless the ultimate intention is to leverage the PE's financial fire power for significantly more investment. That is all to the good but may well result in further painful dilution for DPP shareholders. And by then they will be a minority force, without blocking rights.
Will be interesting to see the docs when they come out. I have no stake here myself. But after a long and painful association with DPP I remain intrigued how the story plays out. And obviously hope for a happy ending for its long suffering shareholders
I'd imagine if they only offer 10p it would be declined. They traded well during lockdown, so hopefully won't get sold on the cheap. I'd expect 15p at least. Profit turned next year update in late September should be good if we get that far.
I suspect that since this is a reverse takeover by an equity finance group we will be offered cash so that they can take 100% holding and possibly delist. Doubt we will be offered shares in the enlarged entity. Just got to hope that these people have purchased shares in the past 12mths and so are obliged to offer that price for the takeover, otherwise I believe 10p is best we can hope for
Really light on any £ detail.
Will this still be listed but will th existing shares being minority shareholders
Takeover then suspension
I believe the half year results due late September.
Can someone please remind me when the next update is. Thanks in advance.
Corn. Agreed, would be interesting to see whether they increase the holding further. Is this rich bloke behind the scenes here, I think there are further parent / holding companies so hard to tell.
I see the Company that owns the Starbucks franchise for Ireland has increased its stake here, what a great time to strike? Pagent another Dublin based company is also a holder here, even better? I increased my holding today and will keep a close eye, could be exciting?
That's the slight dip I was on about. Now a slight improvement in the share price expected. DYOR.
I really hope we start to see what has long been forecast - a significant reduction of group EBITDA losses in 2020 and 2021 as we move to a projected cash flow breakeven in 2022.
Of course a trading update will just be the like for like sales.
That's good news. Looking forward to an update! I expect a small dip before then, then a nice rise just after 9.5p not long now.
Trading update to be released 26 June with AGM.
I welcome the more cautious approach as the current situation may go on for some time. Hopefully a corner has been turned.
Currently breakeven on this share, would like to see it it in the 15-20p range sometime next year.
Agreed, would have liked information about the last couple of months. 2019 was as expected. But I don't expect the next update until July or August now and for that reason I'm downgrading to hold. I think it will be next year before they turn a profit but being on takeaway.com seems positive. More online sales also helping as is cheaper labour and food costs. This should last for a while IMHO. Good luck all holder's.
Shame they didn't give more information of current trading this year and certainly in the COVID period.
Agree, ijr1 - I've been topping up early this year, 6-7p.
In Poland restaurants, pubs, clubs and casinos are closed, but home delivery services are allowed. Domino's UK has been performing well on the back of this. I'm sure all delivery services have been doing well in Poland as well. Poland will gradually lift lockdown from Sunday as they went into it before the UK. I expect the next update in June and and announcement in May. On January 9th I recommended buying these shares at 4.75p. That advice still stands. DYOR.
Where did they say the accounts were 'not being signed off'? I think they merely said they were delaying announcement of the results due to the FCA and FRC guidance and their two-week moratorium on financial results.
Don’t like the accounts not being signed off at all ADM. Good to see the brisk business my mate told me about is true. GLA
They recently said:
'DPP announces that, whilst the Board had declared an intention to announce the Group's audited results for the year ended 31 December 2019 on 31 March 2020, it has decided to delay the announcement after considering guidance recently issued by the Financial Conduct Authority and the Financial Reporting Council. The Board has also discussed this matter with the Group's advisers.
The original reporting date falls within the two-week moratorium recommended by both bodies and the Group will, therefore, report no earlier than 6 April 2020. We are choosing not to set a revised announcement date at this time, mindful that any new commitment could be impacted by further regulatory guidance. We will commit to a new date as soon as the regulatory background becomes clearer.
In line with our announcement on 7 February 2020, the Board expects to report full year results for the year ended 31 December 2019 in line with management expectations: System Sales up 13% to approximately PLN 81m and 3% like-for-like growth in System Sales 2019 over 2018. Cash at bank as at 31 December 2019 was £3.6m; control of cash and costs remain key areas of focus for the Group.'
For current trading, they said:
'DPP therefore continues to trade, making deliveries from all of its 69 stores. The Group's high level of online ordering of delivery sales (82% in 2019), which supports online payment for food orders, is proving attractive to customers in the prevailing environment. In addition we have introduced a Contactless Delivery and Contactless Carry-out process for customers, which have been well received. Eat In dining has stopped altogether for the present.
Meanwhile, we are currently seeing reductions in the cost of ingredients, particularly in cheese - a key component of most pizzas. In addition, in recent weeks the recruitment market has improved markedly for us.
Our first priority is the health and wellbeing of our people. We follow the health and safety recommendations of the local and national authorities in Poland.
Overall, the situation is changing rapidly, and it is difficult to foresee the potential impact on our business and the further threats and opportunities that may await us. As such, there is little visibility on the potential full year outcome for our 2020 Financial Year at this time. However, for so long as we are permitted to continue to sell and deliver great pizzas to our customers we believe that we are well placed to trade relatively well during the lock down. Nevertheless, we cannot anticipate how our customers might react to circumstances, which change almost daily.'
Labour and ingredient costs are a large component of expenditure, so these comments are promising. Provided all stores can continue to operate and deliver pizza, they may do reasonably well this year.
Last update said year end results would be published 31st March. Anyone know what happened? A bit concerning.