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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Domino's Pizza - Shares surge towards £5

April 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • DOM
  • Price:
  • 479p
The shares surged to a new high of 479p and have gained 53% since our main recommendation last November. The catalyst was a very strong set of results for the year ended 31 December, which showed a 15% increase in system sales to £201m and pretax profit rising nearly 27% to £11.2m. Earnings grew just over 22% to 15.5p in spite of the tax charge rising from 23.3% to 26.2%. Domino’s once again demonstrated its impressive cash generation and in spite of returning £8.2m to shareholders through share buybacks, its net debt fell from £4.2m to £4.1m.During the year, Domino’s opened 50 new outlets, a considerable acceleration on the 40 opened the previous year and its chain of mainly franchised stores has now grown to 407. Intere ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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