Published date: Friday, January 4, 2008Coffee Republic brews new recruits
Coffee Republic (CFE:AIM) – Interims PTP: -£0.9m (-£1.3m) Divi: n/a (n/a)
Half-year losses narrowed as the coffee retailer continued to sign up new franchisees and reports 4.2% like-for-like sales growth. Between March and December, it doubled the size of UK operations to 82 outlets.
Administration costs rose by 46% on partnership trials and it appointed an international development boss. It has already impressed cinema chain Cineworld (CINE) enough to secure concession stands at each of its 73 UK sites.
New finance director James Muirhead joins with leisure sector expertise including Tiger Tiger nightclub-owner Novus, and health club chain Esporta.
Chairman Peter Breach believes expansion opportunities in Asia may soon surpass Europe and America.
Coffee Republic nudged ahead by 1% to 2.29p, although still some 42% off 2007’s high of 3.95p in May.
Shares says: It’s been through the wars but a recovery could be in sight as sales grow. SPECULATIVE BUY
by: Dan Coatsworth
Source: Shares Magazine
