Management wrangles at Global Brands SA led to a sharp increase in loss in the first half of 2009.
Luxembourg-registered Global is the exclusive master franchisee of Domino’s Pizza in Switzerland, Luxembourg and Liechtenstein. Revenues edged up from CHF5.78m to CHF5.87m in the six months to June 2009. The loss more than doubled from CHF552,000 to CHF1.16m.
There was still net cash of CHF653,000 at the end of June 2009 but Global has already said that it needs more cash. Global intends to raise CHF1m (£570,000) from a placing. An EGM is being held on 25 September to enable the new shares to be issued. The cash will allow Global to open a new Domino’s store at Hoengg, Zurich – capital spending will be CHF175,000.
Management does believe the worst is over and it intends to invest in a marketing campaign.
Product prices will be reduced and delivery areas cut down so that they are no more than nine minutes from the store. Logistics and dough making is being outsourced.
There are longer-term plans to add sandwiches and pasta to the menu and to open smaller stores in railway stations and other public places.
Former Portsmouth Football Club owner Alexandre Gaydamak owns 51.96% of the company.
At 17.5p a share, Global is valued at £840,000 – prior to the proposed fund raising.
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