DP Poland PLC Sale and sub-franchising of Krakow stores (5983Q)
December 01 2016 - 2:00AM
UK Regulatory
TIDMDPP
RNS Number : 5983Q
DP Poland PLC
01 December 2016
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 GBP34k, at an
exchange rate of PLN5.77:GBP1. Total consideration payable to DP
Poland for the transactions is the net book value of PLN1,794k,
equivalent to GBP347k at an exchange rate of PLN5.17:GBP1. 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
This information is provided by RNS
The company news service from the London Stock Exchange
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