PRELIMINARY RESULTS
Coffee Republic PLC, the independent coffeehouse franchisor and operator, announces its preliminary results for the year to 30 March 2008
Key Points:
- The number of total outlets has more than quadrupled, to 193 since the beginning of the 2008 financial year (26 march 2007) driven by a large growth in concession outlets.
- The number of franchise units has doubled, to 53, in the same period. There are now 69 full service stores, including company owned, in the UK.
- There are ten international stores now open, principally in the Middle East and Eastern Europe with roll out commitments for more than 200 stores over the next 5 years.
- CEO to move to vice - chairman and maintains major shareholding as the business enters a phase of consolidation and refinement.
- Like for like sales for the total network for the quarter ended 29 June 2008 are 2.5% positive driven by a strong performance from the franchise bar portfolio.
Preliminary Results - Financial
- Financial results show a net loss of £2.50 million (2007: £2.42million) with £0.7m of fixed asset impairments and loss on disposal.
- Reported sales down 39.8% to £5.8 million following the conversion to franchising. Total network sales grew 9.0%, based on UK franchises and Company stores.
- A further £620,000 repaid to the bank during the year.
- Operating losses stable at £1.6m with the company absorbing unexpected costs of circa £200,000 and taking a bad debt impairment of £191,000.
Commenting Peter Breach, Chairman, said:
'This has been a year of significant change with the brand now represented across the UK and in twelve countries overseas.
We are still in a turnaround period and our costs have continued to outpace our income as we vigorously invest in the future of this global brand.
I continue to be impressed by the strength of the brand and I am convinced that our focus on Company owned bars, UK and International franchising and concessions is the most effective way to deliver profits to our shareholders in the medium term.'
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