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I haven't seen any announcements from the company prior to the recent share price decline. I could understand investors being nervous about dilution but DPP did indicate in March 2018 that they felt their store roll out to 100 stores in 2020 and 145 stores by 2023 would be achievable without further equity issuance. If the interim results due in September shed further light on how they will achieve this, it may be received positively. But I do want to see a clearer path to group EBITDA breakeven. I hope to see a sharp improvement taking us there in 2019-20.
Well some good volume today, a very under rated share, with most of the stores well on track with strong sales behind them, a good interim in sept this should retrace to mid 30s I reckon, certainly one too watch. Regards H.
Retrace to 23-24p a 50% Fibonacci retrace?? Who knows? This is AIM, anything is possible :(
Bargain hunt!
Looking forward to September 18th, the price of cheese going down. Profits going up. This company is investing for the future!
Surely all trades involve a buyer and seller So it’s a matter of interpretation as to whether trade increased or reduced previous trading price.
Personally I think that people are too fussed about trades and their direction on a day to day basis.
Look at longer term performance and expectations which will over be reflected in the price
Why do buys still get put down as a sell. This is 2018 I expect better. I know because I bought a few shares yesterday and on this website it was a black trade and on H/L it was marked as a sell.
Yes, it looked quite good I think and I'm waiting for the results in September 2018. I think the focus on growing store EBITDA and bringing the many stores opened in 2016-17 to breakeven and profit is welcome. We still have many stores which are 'new' and are a huge drag on EBITDA. The group does need to become self-funded at some point and, if they do still feel they can reach 145 stores by 2023 without further equity issuance, it looks like they are managing the business on that basis.
Solid progress on like for likes and overall sales growth Interest from franchisers to open more stores is a good positive as well I will await interim RNS with interest to see what cash position is as RNS hints that they are slowing store opening rate to reduce cash burn
Poland are out of the World Cup, could this be partly to blame for the recent drop? Less pizza sales as hoped? Time to add for me if it goes any further downwards.
Been ticking up very nicely past week or so. Cannot see below 30p again this year. Been in the doldrums for some time so needs abit of a rise. Two and half more years before this really pushes along. Until then happy to hold and maybe add a few here and there.
Yes, that was positive. It takes a long time to build a successful nationwide business but short-term setbacks in reaching group level profitability seem to have obscured the important progress they have made. I'm particularly pleased that they have commissary capacity for up to 150 stores (until 2024+) and that the older stores in the estate are outperforming expectations of �80,000 EBITDA annually. In the long run, I hope Polish GDP (and consumer spending) continues to rise and converge with the European average. Growth in store numbers to 70 by the end of 2018; 100 by the end of 2020; 145 by the end of 2023; and, possibly, 282 by the end of 2030 (Peel Hunt) and the continuing decline in the drag from immature loss making stores makes this a compelling long-term proposition IMHO.
I want DPP to be remain a separate entity as well. Key points in update for me was abatement of margin pressure and strong like for like growth as stores mature.
I want DPP to be remain a separate entity as well. Key points in update for me was abatement of margin pressure and strong like for like growth as stores mature.
I'd prefer DPP to be on its own course for a long time to come, Theanalyzer, especially if they can get to group breakeven and their 2023 store target of 145 stores without any further equity issuance - as they indicated.
DOM have purchased in Iceland, Norway and Sweden and their jv with Dominos Australia bought a big chain in Germany so Poland isn’t impossible but I think DPP will be able to run its own course for a bit DPEU has plenty of growth left in Turkey and Russia before it picks up another country.
Do you mean Domino's Pizza Group (as in the UK & Ireland, but now expanding in Europe)? I had heard speculation about them and DPP at some point, but not DP Eurasia.
If talk of Domino's Pizza buying up its sister companies such as DPP &/or DP eurasia turns out to be true - Then their share prices could rocket !
Hello hobione. I'm just interested to know why you have invested here when losses have just widened and they don't anticipate going into profit, at least over the next 2 years ? I would have thought there were better profit making companies to put your money in. Anyway, all the best.
Bought in. I have a personal target of 75p here. But dyor.
You have 12 years time for top up. Don't be in rush. It will go down much further.
I'm intending to top up next week. :) On page 12/17 of the pdf. presentation: http://dppoland.com/2015/wp-content/uploads/2017_results_presentation_March-2018.pdf ... it states: Some 2018 costs and investments were paid in 2017 � accrued for 2018 Input VAT to be paid back in 2018 + other VAT reclaims In total c.�1.1m in equivalent cash on top of the �4.5m cash at 31 Dec 2017 = <�6m No further equity raise anticipated to deliver 5-year roll-out plan of 145 stores by YE 2023 Banking facility from 2019, assuming DP Polska cash positive There's clearly scope to issue more equity if needed, as they have left some room in there (not 'anticipated'). I would not object if the circumstances warranted it. Nonetheless, they have more cash than you would think based on a quick glance of their balance sheet and financials. Key for me is that the end seems to be in sight for any further substantial equity issuance and they've now set a target of 100 stores by year end 2020 and 145 stores by year end 2023, which seems quite achievable and a steady rollout. (Peel Hunt had modelled the company's current 75p target price on 282 stores by 2030.) If DP Polska does go cash positive, ahead of the group as a whole, then the ability to access some debt finance is positive news IMHO.
Agreed Hugo36. On my earlier post, the presentation slides (as a pdf. from the dppoland.com website) confirm the commissary cost as about a million: 'Capital light fit-out, albeit highest capital project to date of c.�1m'. This is a huge expense which won't recur for a while as they now have commissary capacity for 150 stores, so we're likely OK until 2022+ on that measure.
I don’t know what that was all about today (the drop) but it certainly gave me another chance to pick some more for the future. 100 stores for 2020 are still on track which is good and it is then I think we will see real fruition coming to the fore. Very strong buy at these levels for me.
I agree. I would assume that the comments mean the mature stores are now significantly in excess of �80,000 EBITDA, which means that if I seek to value the company in the distant future on the basis of hundreds of mature stores then the potential is significantly greater. I'd encourage everyone here to view the full presentation which is on BRR media under DPP. I was interested in the slide which showed just how much of the store estate is immature, and the upside as those stores grow. The comments about potentially having access to a bank credit facility in 2019 once DP Polska is cash positive was interesting. It was also the case that some store fit out costs (i.e. acquiring equipment) for 2018 were actually incurred in 2017, in advance of the stores opening. That, plus the big one of expense of the commissary, added to 2017 cash burn and I wish they'd broken it out in more detail as those won't repeat in 2018.