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Thu 9th Mar 2017 - Results: Domino's Pizza, Cineworld
Domino’s Pizza reports UK like-for-likes up 7.5%, makes Norwegian acquisition: Domino’s Pizza has reported UK like-for-like sales increased 7.5% for the year ending 25 December 2016. The company saw UK systems sales grow 14% to £988.8m and had a record number of new stores – 81 (2015: 61). It is targeting at least 80 new stores in the UK in 2017, creating up to an estimated additional 3,000 jobs. New store average weekly sales grew 15%. The planned new supply chain centre in Warrington is due to open in December, creating 200 additional jobs. The company reported continued success of digital investment programme in the UK with online now representing 72% of system sales – up by 21% year-on-year. Mobile is representing 73% of digital sales, up by 31%. The company also reported improving system sales performances in international businesses. The Republic of Ireland delivered 10% year-on-year growth. Switzerland delivered 21% year-on-year growth, including one new store being Ebitda positive. The conversion process of stores in Germany following Joey’s acquisition was delivered successfully six months ahead of plan. It also said it had made a solid start in the Nordics. Like-for like sales in the UK in the first nine weeks of 2017 are up 1.5%, 12.3% in the Republic of Ireland and 9.4% in Switzerland. During this period it has opened 11 stores in the UK (2015: five stores). Chief executive David Wild said: “2016 was another successful year for Domino’s Pizza Group and this performance is reflected in today’s financial results. The UK delivered strong year-on-year growth due to robust like-for-like sales and the opening of 81 new stores. This performance, combined with our tight control of costs, has generated a significant rise in profits and a dividend payment of 8.00p per share. Our cash conversion remains very strong and we have reinvested through International expansion and returned cash to shareholders through dividends and share buy-backs. We remain confident in the resilience and long-term potential of our business model and are committed to continue to invest with our franchisees for growth. We expect to open at least 80 new stores in the UK with further footprint expansion in all our overseas operations. I would like to thank the Domino’s Pizza Group team for its continued hard work. I also want to pay tribute to our franchisees whose tireless endeavours ensure that our customers continue to enjoy great pizzas with great service every day – whether ordered online or by phone, delivered to the door or collected in store.” The company has also acquired Dolly Dimple’s in Norway through its associate, Pizza Pizza Norway and also assumed a controlling shareholding in the Norway, Sweden and Iceland Domino’s businesses. The company stated: “Dolly Dimple’s is the third largest pizza company in Norway, with 42 stores across the country and a well-established and strong heritage of customer service. It is being acquired from Norges Gruppen for an enterprise value of £4m. Domino’s plans to integrate the Dolly Dimple’s business into the start-up Domino’s operation within Norway, which currently has 12 operating stores. The groups have limited geographical overlap and the combined operation will have around 50 stores by the end of the year, providing nationwide coverage. In a series of transactions, which are dependent upon approval from the Central Bank of Iceland, the group shareholdings will be restructured and Domino’s Pizza Group will assume a controlling share in the Norway, Sweden and Iceland Domino’s businesses ahead of schedule. Domino’s Pizza Group will acquire the Iceland group 51% shareholding in Pizza Pizza Norway and increase its stake in the Icelandic business from 49% to 51%.” Wild said: “This is a really exciting move for Domino’s Pizza Group and we are delighted to welcome the business into the Domino’s group. Dolly Dimple’s is a great operation with a loyal customer base, because of its great tasting pizzas. The Norwegian market has plenty of opportunity for growth and with Dolly Dimple’s stores and dedicated colleagues, alongside our expertise in digital and e-commerce, this acquisition will drive Domino’s growth across Norway. I am also pleased that we have been able to restructure our shareholdings ahead of schedule and now have a controlling share in the Norway, Sweden and Iceland businesses.”

Cineworld reports revenue and Ebitda boost: Cineworld has reported revenue grew 13.8% to £797.8m for the year ending 31 December 2016. Ebitda increased 13.2% to £175.8m while adjusted profit before tax was up 12.5% to £111.4m. It reached the milestone of more than 100 million customers coming through its doors. Cineworld acquired five Empire cinemas, a total of 64 screens, including the iconic Empire Leicester Square. It opened eight new sites – four in the UK and four in the rest of the world, adding 78 screens, bringing the total number of screens to 2,115 at 31 December 2016. It completed nine major refurbishments – six in the UK and three in the rest of the world. Chief executive Mooky Greidinger said: “2016 was another record year for Cineworld. The results were driven by a focus on costs and operating efficiencies and the expansion of the estate. The group progressed well with our strategy, we opened eight new sites, split equally between the UK and the rest of the world, acquired five Empire cinemas, completed nine great refurbishments, six in the UK and three in the ROW, and introduced five new IMAX screens and thirteen 4DX screens. Our revenues grew by 13.0% and Ebitda by 13.2% and we were successful in maintaining our margins, which enabled an increase in the dividend for the year. We look forward to 2017 with confidence in our business, our plans for further expansion and refurbishment and the exciting film release schedule.”

Elegant Hotels signs marketing and sales agreement in St Lucia: Elegant Hotels Group, the owner and operator of six upscale freehold hotels and a beachfront restaurant on the island of Barbados and where investor Luke Johnson holds a stake, has signed a agreement marketing and sales agreement with The Landings Resort and Spa in St Lucia. The agreement involves Elegant Hotels providing The Landings with a variety of services across the areas of sales, marketing, reservations, revenue management and public relations. The value of the contract to the group is expected to be about $200,000 per annum, and the property will be fully branded as part of the Elegant Hotels portfolio as The Landings Resort and Spa by Elegant Hotels. The Landings is situated within 19 acres of tropical landscaped gardens in Rodney Bay, and consists of 85 villa suites with ocean, beachfront or marina views. The resort’s amenities and services include a 7,000-square-foot spa, a state-of-the-art health club, a private marina, three restaurants and two bars, three swimming pools, two tennis courts, an 800-foot beachfront, and an extensive array of water sports. It will be Elegant Hotels’ second hotel offering outside Barbados, following the signing in November 2016 of a management contract with Hodges Bay Resort in Antigua, which is due to open in autumn 2017. Chief executive Sunil Chatrani said: “We are delighted to have signed this agreement with a luxury property that so clearly reflects our ethos of understated elegance and outstanding customer service. As we said at the time of our initial public offering in May 2015, St Lucia and Antigua are the two Caribbean islands beyond Barbados into which we are particularly keen to expand, and we are therefore very pleased to now have a presence in both. We look forward to working with the management team of The Landings in order to combine the high quality of their property with Elegant Hotels’ sales and marketing expertise.”

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