1 December 2016
DP Poland PLC
("DP Poland" or the "Company")
Sale and sub-franchising of Krakow stores
DP Poland, through its wholly owned subsidiary DP Polska, has the exclusive right to develop, operate and sub-franchise Domino's Pizza stores in Poland. There are currently 32 Domino's Pizza stores in 9 Polish cities.
DP Poland is pleased to announce the sale and sub-franchising of 4 corporately owned stores in Krakow to VKF Group. VKF Group is a Polish company established and led by new Domino's sub-franchisee Wojtek Fronczyk. Wojtek Fronczyk spent the last 10 years in the UK managing Domino's Pizza stores, during which time he was awarded Supervisor of the Year 2014 before becoming an Area Manager. Moving back to Poland in the summer of 2016 Wojtek joined the Polish Domino's team as Area Manager for Krakow. Wojtek opened Krakow's fifth Domino's Pizza store in November 2016 under a management contract with DP Polska SA.
For the year ended 31 December 2015 the 4 corporate stores being sold recorded an EBITDA loss of PLN197k equivalent to £34k, at an exchange rate of PLN5.77:£1. Total consideration payable to DP Poland for the transactions is the net book value of PLN1,794k, equivalent to £347k at an exchange rate of PLN5.17:£1. Proceeds from the transactions will be settled in cash and used to fund the working capital of the Company. Following this sale DP Poland will have 13 corporately managed stores and 19 sub-franchised stores.
DP Poland's growth strategy is to expand through a combination of corporately owned and sub-franchised stores. Sub-franchising is core to the Domino's Pizza model worldwide, giving the opportunity to individuals to leverage the Domino's Pizza System and brand and to grow their own profitable businesses.
Peter Shaw, Chief Executive of DP Poland said:
"We are delighted that VKF Group, led by sub-franchisee Wojtek Fronczyk, has acquired our 4 corporate stores in Krakow. Wojtek has worked as a highly successful Domino's Area Manager in the UK and I am impressed by the impact he has already made working with us in Krakow since this summer. Extending sub-franchising is key to our expansion plans and I look forward to welcoming more sub-franchisees to more cities in the future."
Wojtek Fronczyk, VKF Group said:
"Returning to my home town of Krakow as a Domino's sub-franchisee has been a long-held ambition. I am delighted with the quality of the stores and the store teams that I am taking over and I look forward to realising their full potential."
Enquiries:
DP Poland PLC Peter Shaw, Chief Executive www.dppoland.com |
020 3393 6954 |
Peel Hunt LLP Adrian Trimmings / George Sellar |
020 7418 8900 |
