Financial Accounting Assignment

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Financial Accounting Assignment

Financial Accounting Assignment

Return on Equity and share prices over 5 years for Dominos Pizza UK plc

In recent years we have been exploring different structures to enable our shareholders to benefit from the significant profitability and exceptional returns on capital that can be obtained from a well-run Domino's Pizza store. Past experience has shown us that corporate ownership can dull the entrepreneurial spirit that is essential to that success, and impose overheads, that in a smaller business, might be avoided. We have, therefore, been exploring a number of alternatives, including joint ventures, to see if the partnership of corporate strength and the entrepreneurialism of a franchisee who has invested his or her own money into the business can reproduce the success experienced by so many of our franchisees. The results to date from our current joint ventures have been encouraging and, as a result, we have determined to incorporate most of the existing corporate stores into joint ventures. We will attempt to establish as many of the joint ventures as possible using third party debt funding so that your Company's role will be that of an equity partner. This will enable us to maximise our returns and obtain the return of much of the capital previously invested. This will then become available for reinvestment in the core business or returned to shareholders. The return on equity of the last five years of the Dominos Pizza UK plc is 18.

Basic earnings per share were up 46.7% to 13.23 pence from 9.02 pence. Diluted earnings per share increased by 51.0% to 12.67 pence from 8.39 pence. As a result of the strong cash generation during the year, the Board is pleased to recommend a further significant increase in the dividend payment which, if approved, will give a final dividend of 3.05 pence per share (2003: 2.18 pence per share). This would give a total dividend for the year of 5.25 pence per share, a 50.0% increase over the 3.50 pence per share declared for 2003. The proposed dividend is 2.5 times covered by profits after tax (2003: 2.6 times). Subject to shareholders' approval the final dividend will be payable on 29 April 2005 to shareholders on the register on 12 April 2005

Return on Equity and share prices over 5 years for Whitbread UK plc

Whitbread is a holding company. Co. is engaged in business as a hospitality company based ...
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