Preliminary Results for the 52 weeks ended 27 December 2009
The Team Chris Moore Chief Executive Officer Lee Ginsberg Chief Financial Officer 2
Financial Highlights for 2009 40% Another record year 30% +31.4% 20% +27.8% +26.0% 10% +16.0% +8.4% 0% LfL sales growth System sales Diluted EPS pre- PBT pre- Total dividend exceptionals * exceptionals * pence per share 3 * Accelerated LTIP charges and impairment + other exceptionals
Other 2009 Highlights • Of the circa 8,900 Domino’s stores worldwide, our market has eight of the Top 10 in sales • Of the circa 3,950 International stores, our market has 20 of the Top 20 in sales • Last year we delivered to 3.4 million UK households, 13% of all homes (2008: 2.85m) • 68 stores had sales in excess of £1 million (2008: 47) • Up to one million pizzas sold per week • 55 new store openings, a new record 4
Profit and Loss (Pre-exceptionals) 52 weeks ended 52 weeks ended % increase 27 December 2009 28 December 2008 £’000 £’000 System sales 406,924 350,771 16.0 Operating Profit 30,008 23,739 26.4 Net interest (143) (378) 62.2 Profit before tax 29,865 23,361 27.8 Taxation (8,291) (6,546) - Profit after tax 21,574 16,815 28.3 Dividends per share: - Pence 7.75p 5.90p 31.4 - Cover 1.68x 1.72x Earnings per share: - Basic 13.81p 10.86p 27.2 - Diluted 13.49p 10.71p 26.0 STRONG GROWTH IN OPERATIONAL GEARING 5
Profit and Loss (exceptional items) 52 weeks ended 52 weeks ended 27 December 2009 28 December 2008 £’000 £’000 Operating exceptionals - Accelerated LTIP charge (980) - - Restructuring/reorganisation costs (264) (54) - Impairment – commissary (2,706) - (3,950) (54) Non-operating exceptionals - Profit/(loss) on sale of assets 247 (184) - (Loss)/profit on sale of subsidiaries (30) 28 - Admission to Official List - (1,002) - Negative goodwill 15,053 - - Unwinding of discount (217) - 11,103 (1,212) - Taxation impact of exceptionals 816 61 TOTAL EXCEPTIONAL ITEMS 11,919 (1,151) 6
Balance Sheet At 27 December 2009 At 28 December 2008 £’000 £’000 Current Assets: At 27 Dec At 28 Dec Non-current assets 78,514 27,660 2009 2008 £’000 £’000 Current assets 41,129 35,784 Inventories 2,735 2,542 Receivables 12,514 13,650 Non-current assets Investment in held for sale 954 736 finance leases 1,745 858 Prepaid lease Total Assets 120,597 64,180 charges 138 132 Cash 23,997 18,602 41,129 35,784 Current liabilities (40,430) (28,094) Current Liabilities Trade & other (24,345) (20,523) Deferred income (77) (77) Non-current liabilities (58,591) (23,306) Financial liabilities (1,772) (4,867) Total Liabilities (99,021) (51,400) Share buyback obligation (10,592) - Tax liabilities (3,644) (2,627) Net Assets 21,576 12,780 (40,430) (28,094) 7
Statement of Changes in Equity At 27 December At 28 December 2009 2008 £’000 £’000 At beginning of year 12,780 9,897 Proceeds from share issue 2,132 653 Treasury shares held by EBT - (4,308) Share buybacks (7,624) (3,783) Profit for year 33,484 15,664 Tax credit/(charge) on employee share options 449 (59) Share options and LTIP charge 1,897 1,106 Exchange translation differences (554) 1,644 Dividends (10,466) (8,035) Share buyback obligation (10,592) - 21,506 12,779 Minorities 70 1 21,576 12,780 8
Cash Flow Statement 52 weeks ended 52 weeks ended 27 December 2009 28 December 2008 £’000 £’000 Profit before taxation 40,968 22,149 Excess of fair value of assets acquired on consideration (15,053) - Impairment 2,706 - Net finance costs 360 378 Share of post tax profits of associates (553) (187) Amortisation and depreciation 2,014 1,958 (Profit)/Loss on disposal of non-current assets (217) 156 Share option and LTIP charge 1,897 1,106 Changes in working capital 3,513 (1,255) Cash generated from operations 35,635 24,305 Taxation paid (5,511) (5,965) Net cash generated by operating activities 30,124 18,340 Net cash used by investing activities (20,658) (9,573) Cash inflow before financing 9,466 8,767 Financing activities (3,669) (5,845) Net increase in cash 5,797 2,922 Opening cash balance 18,602 14,629 Foreign exchange (loss)/gain on cash and cash equivalents (402) 1,051 Cash at end of year 23,997 18,602 9
Analysis of Borrowings * At 27 Dec 2009 At 28 Dec 2008 £’000 £’000 Cash at bank 23,997 18,602 Revolving credit facilities (25,000) (12,300) Net Cash (1,003) 6,302 DP Capital (2,703) (2,424) EBT loan (12,035) (12,035) Other - (17) Adjusted net debt (15,741) (8,174) Adjusted net debt/EBITDA 0.5 0.3 10 * Excludes non-recourse loans and share buyback obligation
Available Debt Facilities Expiry Utilised at Undrawn at Facility Date 27 Dec 09 27 Dec 09 Term Purpose £’m £’m £’m 25.0 * 20 Dec 2012 25.0 - 5 years Multi-purpose 5.0 31 Dec 2013 2.7 2.3 5 years DP Capital 13.0 * 31 Jan 2014 12.0 1.0 7 years EBT 43.0 39.7 3.3 Cash and cash equivalents at 27 Dec 2009 24.0 Surplus available headroom at 27 Dec 2009 27.3 11 * LIBOR + 50bpts
Cash Returned to Shareholders 5 year total 2009 2008 2007 2006 2005 £’000 £’000 £’000 £’000 £’000 £’000 Profit after tax 68,720 21,574 * 15,664 13,239 9,996 8,247 Share buybacks 38,135 7,623 3,783 8,346 10,161 8,222 Dividends 31,720 10,466 8,035 5,816 4,234 3,169 Total returned 69,855 18,089 11,818 14,162 14,395 11,391 % of profit after tax 102 % 84% 75% 107% 144% 138% Total CAPEX – - Maintenance 12,823 2,312 2,250 2,516 3,104 2,641 - Expansion 30,874 20,196 9,178 1,444 56 - 43,697 22,508 11,428 3,960 3,160 2,641 * Pre-exceptionals 12
Diluted Earnings Per Share * Compound increase of 27% 26% over last five years 15 29% 14 13 39% 12 13.49 11 27% 10 Pence 9 10.71 18% 8 7 8.33 6 5 5.99 4 4.72 3 2 1 0 2005 2006 2007 2008 2009 Diluted earnings per share Linear (Diluted earnings per share) 13 * pre-exceptionals
Dividends Per Share * 31% Compound increase of 36% 9 over last five years 8 34% 7 44% 7.75 6 Pence 5 5.90 35% 4 38% 4.40 3 3.06 2 2.27 1 0 2005 2006 2007 2008 2009 * All figures adjusted for share split Dividends per share Linear (Dividends per share) 14
System Sales – The Growth Driver 450 35.00 19% compound growth in system sales £406.9 29% compound growth in PBT 400 30.00 £29.9 £350.8 350 25.00 £296.3 £23.4 300 System Sales £’m PBT * £’m 20.00 £240.1 250 £18.7 15.00 £200.7 200 £14.1 £10.9 10.00 150 100 5.00 2005 2006 2007 2008 2009 System Sales PBT * pre-exceptionals 15
Cumulative Like-for-Like Sales Growth 8.4% growth in 2009 30.00% 12.8% 13.5% 11.9% 25.00% 9.7% 9.30% 9.70% 20.00% 3.6% 3.1% 8.9% 11.2% 15.00% 7.1% 3.0% 10.00% 5.00% 0.00% 1 2 3 4 5 6 7 8 9 10 11 12 2008 % increase 2009 % increase 16
Key Drivers of Like-for-Like Growth 2007 Constant Mature Store Population £19.00 45 16.0% 15.3% £18.21 £18.50 £18.06 15.0% 40 £18.00 35.2 34.5 34.5 £17.50 14.0% 13.1% 35 £16.99 £17.00 13.0% 12.1% £16.50 30 12.0% 11% £16.00 25 £15.50 11.0% £15.00 10.0% 20 2007 2008 2009 2007 2008 2009 2007 2008 2009 Average Ticket (gross) Penetration (% HHs purchased in Re-order frequency last 210 days) 17
Two for Tuesday Attracting new customers - from 1,700 to 4,800 a week 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 18
Growth in Households Served We delivered to 3.4 million homes in 2009 4,000,000 3,500,000 3,000,000 Households Served 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2007 2008 2009 HHs served by '07 Mature Stores All HHs served 19
More Advertising Fire Power • Total System spent approx. £36.5m on marketing • National Ad Fund of £20m (2008: £18m) • Total LSM spend £16.5m (2008: £14m) • Lower costs across most media, particularly TV • Domino’s taking maximum advantage of reduced media rates • Spent 17% more in 2009 on TV = £441,355 • Delivered 49% more TVRs (not including sponsorship) • This means we reached over 1m more people than last year 20 20
TV Sponsorship • Britain’s Got Talent - three year audience delivery completed in two years • Delivered almost £5m of additional (free) media value • BGT final - the biggest show on TV in the last five years 21
Key Drivers of Like-for-Like Sales Growth E-commerce: 40% increase in online sales £100 30% 27.8% Average ticket 20% higher than regular orders 25% £78.5m 23.3% £80 20% £55.9m £60 16.1% 15% 12.5% £’m 10.4% £40 £32.2m 10% £20.1m £20 £13.9m 5% 0% £0 2005 2006 2007 2008 2009 22 e-commerce net sales (£) % of delivered sales (RHS)
E-commerce Drivers • Increase of 29% in e-commerce marketing • iPhone ordering available with dedicated app coming soon • Increasing focus on Social Media applications 23
Key Growth Drivers: Service Mature Store Average Delivery Time: 23 minutes Continuous improvement: % OTD <15 minutes 86% 84% 82% 80% 78% 76% 74% 72% 70% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 2009 24
Recommend
More recommend
