Domino’s Pizza Poland is to raise £5.5m to fund the opening of 20 news stores with an eventual goal of growing to up to 300 stores in the country.
The group, which aims to have 80 stores trading by 2020, said trade had been strong in Q215 and it was on track to meet market expectations in the current financial year.
The company this morning announced a conditional placing of 34,810,126 new ordinary shares of 0.5 pence each at a price of 15.8 pence per placing share. The placing shares represent approximately 36.5% of the existing issued share capital of the company.
The company said: Whilst the long term focus of the business is to sub-franchise the Domino’s Pizza brand in Poland, the shorter term focus will be to roll-out both corporately-owned and sub-franchised stores in cities and towns across the country. The roll-out of corporately-owned stores is intended to further establish and prove the company’s business model outside of Warsaw, which the directors believe will lead to increased sub-franchising activity in the future.
The net proceeds of the placing are expected to provide the additional funding required to enable the Company to implement its plans including opening up to 20 further corporately-owned stores in 2016/17 and sustaining marketing expenditure on boosting awareness of the Domino’s Pizza brand and offering in Poland over the next three years.”
Peter Shaw, chief executive of DP Poland, said: “The company has delivered significant progress during the first 5 months of 2015. The strong financial and KPI performance from the stores gives the board comfort that our momentum is set to continue. The board is extremely pleased with the support that we have received from both existing and new investors during this fundraising and we are entirely focussed on delivering our growth strategy and realising the significant opportunity for Domino’s Pizza in Poland.”
