TIDMDPP
RNS Number : 9593H
DP Poland PLC
30 March 2020
DP Poland plc
("DP Poland" or "the Group")
Change to full year results date and COVID-19 update
Delay to full year results due to FCA moratorium
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 GBP3.6m;
control of cash and costs remain key areas of focus for the
Group.
Given the delay to the audited full year results and the
increased uncertainty created by the spread of COVID-19, the Group
today provides an update on its operational response, current
trading and outlook.
COVID-19 response, current trading and outlook
Trading in 2020 started broadly in line with management's
expectations for the full year, with only minimal impact from
COVID-19 in the first two months of 2020.
With effect from Saturday, 14 March 2020, the Polish government
imposed similar 'lock down' restrictions to those now prevailing in
the UK, including confining people to their homes except for
essential activities (including food shopping, dog-walking, going
to work and taking care of elderly relatives). While, as part of
these restrictions, all restaurants, clubs, bars, and cafes are
closed to the public, restaurants are permitted to provide food
deliveries. Other public spaces such as gyms, swimming pools,
museums, libraries, cinemas and theatres are also all closed.
We have appointed a senior, fully dedicated COVID-19 team, which
is focused on this crisis all day and every day. We are following
the advice of government and health authorities to ensure that our
stores can continue to operate safely and deliver delicious pizzas
to our customers.
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.
Thanks to the strength of the Domino's brand and its reputation
for quality of food and service, however, the Board is confident of
being well positioned for growth and the long-term success of the
business.
Iwona Olbrys, CEO, commented:
"Our first priority is to do all we can to support responsibly
the global efforts to control the spread of COVID-19, and to
safeguard our employees and our customers.
Since arriving at DPP in late September 2019, I have been
impressed by the loyalty, skill and commitment of our team. Our
competitors rightly regard DPP as a tightly run, high quality
operation.
The Coronavirus presents our industry - and business in general
in Poland and around the world - with some major obstacles.
Nevertheless, I believe that the Domino's brand, and its reputation
for quality of product and service, put us in a good position: much
of our competition would love to have such a reputation. We
continue to deliver to our customers delicious, hot pizzas,
typically within 30 minutes from order.
In light of the Coronavirus concerns, we now offer contact free
delivery and carry out. We continue to create new initiatives and
seek to adapt to the 'new world'.
Our customers order their pizzas increasingly on our digital
platforms, and pay for their orders on that platform too. In Poland
we are possibly 'best in class' on this front.
Whilst the outlook for the world at present is uncertain, in
this new world I believe that DPP occupies an important position in
the Polish Food & Beverage industry."
Enquiries:
DP Poland PLC 020 3393 6954
Nick Donaldson, Non-Executive Chairman
Iwona Olbryś, CEO
Peel Hunt LLP 020 7418 8900
Adrian Trimmings
Andrew Clark
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDJLMLTMTATBLM
(END) Dow Jones Newswires
March 30, 2020 02:00 ET (06:00 GMT)
Dp Poland (LSE:DPP)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dp Poland (LSE:DPP)
Historical Stock Chart
From Jul 2023 to Jul 2024