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Coffee Heaven - A heavenly share for penny punters ? (COH)
overgrowth
- 06 Oct 2003 22:47
 A
busy day in the Warsaw Underground ! |
Not just another coffee shop chain - this one is a brand leader and is only trading in Eastern/Central Europe (i.e. the countries recently admitted to the EU destined for substantial business growth). The company is creating new outlets at a fair old pace and take a look at their website - these are quality stores in high-profile locations like major airports, railway stations etc. Website: http://www.coffeeheaven.eu.com |
|
APRIL 2006 TRADING UPDATE!!! Total Gross Revenues for 12 months to 31st March up 66% to £6.3M (2005: £3.8M) Lots more info. on new markets and stores click here to read the full details. Stores: 43 (up from 32) stores currently trading (Poland: 30 (up from 23), Czech Republic: 6 (Up from 2), Latvia: 7 with a further 5 units under construction including Bulgaria and sites secured in Romania (subject contract). Bulgaria & Romania are seeking to join the EU from January 2007. Sites located in key high street, shopping malls or Airport locations. Company growth target: increase number of units by at least 20 units to some 63 units by 31 March 2007. Aim being to achieve this level of growth within present Cash resources.Cash balances at 31 March 2006 were approximately £2.9M (2005: £0.7M). Debt was nil (2005: £ 2.5M): Nil Debt! Positive EBITDA: For the year ending 31 March 2006, Group EBITDA expected to be firmly positive after charging UK and new market development costs but before exceptional costs relating to the cancellation of bonds (previous Debt). Forecasts: Based on present trading conditions and current exchange rates we anticipate indicative sales of £9.3M for the year to 31 March 2007. This includes indicative sales of £0.4M from Bulgaria, which will be reported but not consolidated. From Richard Worthington (Chairman and Chief Executive): ‘The new financial year has started well. There is no doubt that the significant economic improvement in our markets is feeding through to consumer confidence and spending. The strength of the coffeeheaven brand ensures we are ideally positioned to benefit from our customers' increasing prosperity.’ |
AdieH
- 13 Jun 2007 22:08
- 1350 of 2037
Please keep the personal abuse to yourself Merville.
Are there any actual Chartists that post here and can they give a definitive answer to the question... Yes news drives sp of course it does and without news I have no doubt COH will slide a little but the fundamentals have not changed - the company is gearing up for the next stage of growth if it does not deliver then maybe the sp will drop but my belief is it will deliver and my prediction of 1.00 will be here sooner rather than later... and Davids prediction of 6p well what can I say last three days have been blue... SP to do the talking...
Are there any actual Chartists that post here and can they give a definitive answer to the question... Yes news drives sp of course it does and without news I have no doubt COH will slide a little but the fundamentals have not changed - the company is gearing up for the next stage of growth if it does not deliver then maybe the sp will drop but my belief is it will deliver and my prediction of 1.00 will be here sooner rather than later... and Davids prediction of 6p well what can I say last three days have been blue... SP to do the talking...
MERVILLE - 13 Jun 2007 22:57 - 1351 of 2037
AdieH so sorry , are you an advocator of personal abuse or a practitioner,
I can't see any reason for believing that the share price can move towards 1.00 on the current results, many people have made a good profit on COH sold and moved on, with Starbucks entering the stage they will need more then prime sites to survive, Starbucks is like a cancer speading throughout the world and will no doubt outsell COH. the next few years will be difficult for COH and just because Fund Managers have piled in does not mean 100% returns as many got their fingers burnt with EVS for example. I personally bought COH at 1.42 before the 1:10 and sold mid 40's I hope that COH does indeed progress to your predicted level as it has been good to me but I just can't see it, and as for David 10B's prediction, I agree is just plain nonsense and believe its him just winding you up.
I can't see any reason for believing that the share price can move towards 1.00 on the current results, many people have made a good profit on COH sold and moved on, with Starbucks entering the stage they will need more then prime sites to survive, Starbucks is like a cancer speading throughout the world and will no doubt outsell COH. the next few years will be difficult for COH and just because Fund Managers have piled in does not mean 100% returns as many got their fingers burnt with EVS for example. I personally bought COH at 1.42 before the 1:10 and sold mid 40's I hope that COH does indeed progress to your predicted level as it has been good to me but I just can't see it, and as for David 10B's prediction, I agree is just plain nonsense and believe its him just winding you up.
bmw325 - 13 Jun 2007 23:21 - 1352 of 2037
I predict that Starbucks will buyout COH...
IanT(MoneyAM)
- 14 Jun 2007 07:10
- 1353 of 2037
Merville,
Stick to the discussion, do not resort to personal abuse.
Gents,
This has rolled on for some time now, basically the same discussion day in day out. As I have stated elsewhere, both negative and positive comment and discussion based around that is fine, but personal abuse from ANY side will not be tolerated. Lets move on now.
Ian
Stick to the discussion, do not resort to personal abuse.
Gents,
This has rolled on for some time now, basically the same discussion day in day out. As I have stated elsewhere, both negative and positive comment and discussion based around that is fine, but personal abuse from ANY side will not be tolerated. Lets move on now.
Ian
trigger45 - 14 Jun 2007 07:13 - 1354 of 2037
This is RW's comment on the Starbucks news:-
"We have of course been aware of this for sometime and have planned accordingly. The only surprise why it has taken SB so long to come to CE and the size of the royalties Amrest is paying to SB at 6% - we had expected 5%. That's a huge burden for any business to carry given the margins.
As usually the likely winners out of this will be Starbucks with the franchisee carrying all the risk. Amrest are developing a number of brands like KFC/Pizza Hut as well as their own brands all in several CE markets. A lot of plates to keeping spinning with conflicting demands for capital.
What is important to us is that this is not SB but an SB franchise. In CE we believe that is a critically important difference for many reasons. As we have said many times we do not believe franchising is the correct business model for coffeeheaven in CE today.
In essence nothing changes for coffeeheaven. Most likely SB's entry will expand CE market growth and as sector market leader in CE coffeeheaven will be the biggest beneficiary.
Sincerely
Richard Worthington"
Thanks to Pedro Jack for the above post.
I'm not dismissing your view MERVILLE, but I take the view of the chaiman on this one at this stage.
FWIW I think this is the most important year in COH's history.
Well done on making a profit.
"We have of course been aware of this for sometime and have planned accordingly. The only surprise why it has taken SB so long to come to CE and the size of the royalties Amrest is paying to SB at 6% - we had expected 5%. That's a huge burden for any business to carry given the margins.
As usually the likely winners out of this will be Starbucks with the franchisee carrying all the risk. Amrest are developing a number of brands like KFC/Pizza Hut as well as their own brands all in several CE markets. A lot of plates to keeping spinning with conflicting demands for capital.
What is important to us is that this is not SB but an SB franchise. In CE we believe that is a critically important difference for many reasons. As we have said many times we do not believe franchising is the correct business model for coffeeheaven in CE today.
In essence nothing changes for coffeeheaven. Most likely SB's entry will expand CE market growth and as sector market leader in CE coffeeheaven will be the biggest beneficiary.
Sincerely
Richard Worthington"
Thanks to Pedro Jack for the above post.
I'm not dismissing your view MERVILLE, but I take the view of the chaiman on this one at this stage.
FWIW I think this is the most important year in COH's history.
Well done on making a profit.
David10B
- 14 Jun 2007 08:20
- 1355 of 2037
Good morning chaps, some interesting posts!
Howevere there is never the need for incivility, if you want that please get yourselves of to Iraq or Gaza.
I DISAGREE WITH MR WORTHINGON WHO I FEEL HAS MISSED THE BOAT------FRANCHISING IS THE WAY TO GO.
Big Mac. KFC, BURGER KING, ETC. ETC.
Howevere there is never the need for incivility, if you want that please get yourselves of to Iraq or Gaza.
I DISAGREE WITH MR WORTHINGON WHO I FEEL HAS MISSED THE BOAT------FRANCHISING IS THE WAY TO GO.
Big Mac. KFC, BURGER KING, ETC. ETC.
bmw325 - 14 Jun 2007 08:30 - 1356 of 2037
Mr Worthington and his team have done a very remarkable job and to state otherwise is stupidity.
trigger45 - 14 Jun 2007 08:33 - 1357 of 2037
Not bothered about gloating but relieved to see another 0.75 rise today at the moment.
Who is right or wrong is worthless, show me the money.
Who is right or wrong is worthless, show me the money.
AdieH
- 14 Jun 2007 08:37
- 1358 of 2037
Merville, i'm glad you've made money (like myself), we all have our own agenda's and buying shares is a risk, i'm happy for the moment with my investment in COH but who knows in the future I am sell out before 1.00 but for me this was oversold a week ago and as such that is why we have had 3 days of blue...
MERVILLE - 14 Jun 2007 08:38 - 1359 of 2037
BMW325, this is pasted from Central and Eastern Eourpe food industry web site.
MERVILLE - 14 Jun 2007 08:45 - 1360 of 2037
BMW325... sorry about that it should work this time.
The group announced it planned to open another 1,500 outlets, including 700 company-owned ones, over the next year as part of its aggressive international expansion programme.
There are now more Starbucks coffeehouses in London than on coffee-guzzling Manhattan Island, and the firm has partly managed to beat down competition in the UK from Costa Coffee and CafNero through shear numbers.
One source connected to Costa Coffee said Starbucks' strategy was to go all-out in new markets, opening stores quickly and putting pressure on rival firms there.
They will target any expanding market China India and importantly for COH Eastern Europe and if they are Franchised outlets a takeover of COH seems unlikely, it depends on how quickly they can be up and running.
The group announced it planned to open another 1,500 outlets, including 700 company-owned ones, over the next year as part of its aggressive international expansion programme.
There are now more Starbucks coffeehouses in London than on coffee-guzzling Manhattan Island, and the firm has partly managed to beat down competition in the UK from Costa Coffee and CafNero through shear numbers.
One source connected to Costa Coffee said Starbucks' strategy was to go all-out in new markets, opening stores quickly and putting pressure on rival firms there.
They will target any expanding market China India and importantly for COH Eastern Europe and if they are Franchised outlets a takeover of COH seems unlikely, it depends on how quickly they can be up and running.
David10B
- 14 Jun 2007 09:43
- 1361 of 2037
Well pted Merv
I have always expressed my fears over the following for COH as I believe the management will not be able to cope with strong compentition
One source connected to Costa Coffee said Starbucks' strategy was to go all-out in new markets, opening stores quickly and putting pressure on rival firms there.
Over on my MLR thread, BMW has stated that Worthington already run BKE into trouble---will COH be next?
Certainly he is quick to sell out when the going is good, what happens when it gets tough?
I have always expressed my fears over the following for COH as I believe the management will not be able to cope with strong compentition
One source connected to Costa Coffee said Starbucks' strategy was to go all-out in new markets, opening stores quickly and putting pressure on rival firms there.
Over on my MLR thread, BMW has stated that Worthington already run BKE into trouble---will COH be next?
Certainly he is quick to sell out when the going is good, what happens when it gets tough?
cynic
- 14 Jun 2007 10:30
- 1362 of 2037
costa coffee has an excellent product and has found a good niche market ...... cafe nero, i confess i was under the impression had been taken over last year ...... starbucks product i think is disgusting, but there is no question that they are a big organisation with plenty of muscle.
as for franchises, they are of course a 2-way contract ...... the franchisor needs to have a really good and marketable product, with proper support in all respects for its clients, allowing that client to make a decent profit ...... if it does not, then the franchisee, having been saddled with high commission payments and non-negotiable product costs, probably together with high set-up costs, is going to go belly-up very quickly.
in my local town, CFE failed and Subway (another nasty product!) is really struggling and will probably not survive another 12 months.
as for franchises, they are of course a 2-way contract ...... the franchisor needs to have a really good and marketable product, with proper support in all respects for its clients, allowing that client to make a decent profit ...... if it does not, then the franchisee, having been saddled with high commission payments and non-negotiable product costs, probably together with high set-up costs, is going to go belly-up very quickly.
in my local town, CFE failed and Subway (another nasty product!) is really struggling and will probably not survive another 12 months.
AdieH
- 14 Jun 2007 11:54
- 1363 of 2037
Some nice buys going through today, seems like there is some confidence in COH and its potential future... Sometimes the big boys don't always win and I'm hoping for once Starbucks does not succeed but time will tell... The Franchisee in Poland does not have a great profit margin after taking Starbucks cut...
cynic
- 14 Jun 2007 12:01
- 1364 of 2037
Adie ..... not that i hold or even intend to hold either COH or CHE, but do you consider that COH meets the franchisor criteria that i outlined ...... as far as i can see, it does not, not least because it does not even (yet?) have a solid foundation at home
bmw325 - 14 Jun 2007 12:05 - 1365 of 2037
Dave
I have stated many times that Worthington has done a brilliant job with COH and if they were going to go under they would have done so a long time ago.
Unfortunately with BKE for one reason or another did not fair so well and because of this David or Jim_ Bentley Davis as he his known as across the road has had a pathological hatred for Worthington.
David lost a packet when he eventually sold his holding in BKE.
David I think it is time for you to come clean.
I have stated many times that Worthington has done a brilliant job with COH and if they were going to go under they would have done so a long time ago.
Unfortunately with BKE for one reason or another did not fair so well and because of this David or Jim_ Bentley Davis as he his known as across the road has had a pathological hatred for Worthington.
David lost a packet when he eventually sold his holding in BKE.
David I think it is time for you to come clean.
cynic
- 14 Jun 2007 12:07
- 1366 of 2037
bmw ..... you are very repetitive and boring with your persistent bickering and sniping .... 10B is no better ..... surely it would be much more constructive to respond to the posts of Adie and myself
AdieH
- 14 Jun 2007 12:28
- 1367 of 2037
Time will tell cynic, there was some discussion some time ago regarding difficulty in setting up in the Poland and that is partly why COH has had a slow controlled roll out, RW confirmed at the first AGM I went to that they should have rolled out faster but stipulated the difficulty of finding the right locations and also the politics because of its past history (corruption etc)... Who knows who is right... neither of us can say only time will tell..
David10B
- 14 Jun 2007 12:29
- 1368 of 2037
RIGHT ON CYNIC the man is nuts
He has as a fixation with BKE, what a dog and is to stupid to realise that while he keeps deriding it its brings Worthington to futher attention.
He has as a fixation with BKE, what a dog and is to stupid to realise that while he keeps deriding it its brings Worthington to futher attention.
bmw325 - 14 Jun 2007 12:49 - 1369 of 2037
David
Unfortunately there are posters who still appear to be taken in by you and cynic is one of them.
Like most posters I also take exception to cynic giving opinions on other posters when you do not hold and have no intention of holding.
Unfortunately there are posters who still appear to be taken in by you and cynic is one of them.
Like most posters I also take exception to cynic giving opinions on other posters when you do not hold and have no intention of holding.
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