DP Poland said Thursday CEO Peter Shaw was set to step down and unveiled plans to raise £5m through the issuance of more than half its shares at a significant discount in a bid expand its retail foot print.
Co-founder Peter Shaw would be stepping down as Chief Executive of DP Poland by mutual agreement at the conclusion of the company's 2019 half year, in June 2019.
The company also reported a jump in annual system sales despite headwinds from exceptionally warm and dry weather.
System Sales grew 24% to 72m PLN in 2018, up from 58m PLN 2017.
Growth was stifled somewhat by headwinds including 'exceptionally warm and dry weather from April to mid-November 2018 and the cumulative impact of delivery aggregators' advertising spend on the company's share of voice,' the company said.
Like-for-like system sales grew 6% for 2018, with total delivery sales made online in 2018 rising to 77% for 2078, from 75% the prior year. Total revenues rose to 18% to 59m PLN.
Corporate store earnings (EBITDA) rose 74% to 2.6m PLN and commissary gross profit was up 20% to 3.8m PLN.
As at 6 February 2019, the company had 64 stores. But announced plans to raise capital to support a ramp up of store opening over the next three years through 2021.
The company said it would raise £5m though the placing of up to 8,333,333 at a discount of approximately 58.2% to the closing mid-market price of 14.35 pence on 6 February.
The placing shares, when issued, will represent approximately 57.8 per cent. of the Company's existing issued share capital
Looking to the future, the group said its principal focus would include optimising resources and cost control and on increasing local market expertise, building on the strong operational team in Poland built by outgoing CEO Peter Shaw.
'Pending a further appointment reflecting the Group's priorities in this area, Nick Donaldson, non-executive Chairman, and Rob Morrish, non-executive Director, will take a more active role in the running of the business. Maciej Jania continues as Finance Director of DP Poland and Managing Director of DP Polska SA, reporting directly to the DP Poland board in that connection,' the company said.
At 9:24am: (LON:DPP) DP Poland share price was -6.6p at 7.75p