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.’

Any comments David?

First quarter group like for like sales growth came in at a robust 21% with total store net sales up 59% to 3.4m. At the end of the June its estate comprised 67 stores in countries and its cash position stood at 5.3m.


Like-for-like sales rose 20% in Poland; 28% in Czech Republic; 10% in Latvia; and 73% in Bulgaria. The company says trading in all markets remains buoyant. Encouragingly, sales growth was stronger towards the end of the first quarter.

I also like the fact they are giving their employees a chance to own part of the company.

Do you also see this as waste of time?

To help boost staff retention and performance the group has introduced a company wide employee share ownership scheme that will benefit 50% or more of coffeeheaven's employees, from store managers, to baristas (experts in preparing espresso-based coffee drinks), through to staff at the till.

I'm sure you wont be impressed by the above, but it's always good to read someone with an oppossing view.

WC did in fact also buy at 48p Mr Hurford when Worthington sold.


He picked some up to save face I think it was, s two directors dumping at the top was not really good for the company image.

Did you forget or do I know more than you think.

Did you sleep well, I trust you did.

have a nice day in any eent.

Ok then lets see what Numis is really saying here:-

So here we have 67 stores now in operation with like for like sales on the increase.

No mention of nett profits the bottom line, so the cost of the these over the counter sales must be horrendous, lets see if we can fine them in what Numis has to say.

First quarter group like for like sales growth came in at a robust 21% with total store net sales up 59% to 3.4m. At the end of the June its estate comprised 67 stores in countries and its cash position stood at 5.3m. OK SO FAR, BUT WHERE HAS THE REST OF THE SHAREHOLDER'S MONEY GONE FROM THE BANK.


Like-for-like sales rose 20% in Poland; 28% in Czech Republic; 10% in Latvia; and 73% in Bulgaria. The company says trading in all markets remains buoyant. Encouragingly, sales growth was stronger towards the end of the first quarter. ----FINE BUT WHERE IS THE NETT PROFIT!


Coffeeheaven also announced it has increased its equity interest in CHIR Cafe in Romania to 85% from 19% for a nominal consideration. Meanwhile, in Bulgaria, it has increased its stake in CHI in Bulgaria from 19% to 100%. The consideration was not material. ---WE SHOLD KNOW WHAT SHAREOLDERS FUNDS COH ARE SPENDING, IF I WERE A SAREHLDER I WOULD WANT TO KNOW AND IF DIGGLE NVESTMENTS ARE IN THERE ANYWHERE.


It expects to open the first coffeeheaven store in Bucharest and Budapest during the current financial year. In addition, a number of sites in Hungary are under negotiation, with one already contracted.
NO MENTION OF THE START UP COSTS---WHY NOT IF THE BROKER IS TRYING TO SELL COH AS A INVESTMENT THESE ARE THINGS POTENTIAL INVESTORS WOULD WANT TO KNOW---HOW MUCH IS THE CAPITAL COST OF THESE NEW STORES AND WHAT IS TE EXPECTANT ROI

The group says its strong sales growth is being driven by a mixture of favourable economic conditions across central Europe and growing awareness and appeal of its coffeeheaven brand.


To help boost staff retention and performance the group has introduced a company wide employee share ownership scheme that will benefit 50% or more of coffeeheaven's employees, from store managers, to baristas (experts in preparing espresso-based coffee drinks), through to staff at the till. COULD MEAN THEY CANT GET GOOD STAFF AND NEED INCENTIVES


The update pleased Numis analyst Jose Marco, who says the very strong likes for like growth supports his view that the branded coffee bar market in Central and Eastern Europe is growing rapidly. 'It is still a relatively new phenomenon, so in order to take advantage of this, we believe that coffeeeheaven's strategy of having first mover advantage and expanding into neighbouring countries is proving to be very successful,' he adds. IT WOULD PLEASE ME BETTER OF WE COULD SEE SOME HARD CASH PROFITS INSTEAD OF WORTHLESS WORDS.


Marco welcomes the introduction of the employee share ownership scheme, which he regards as 'pioneering' in the context of Central and Eastern Europe. As well as improving staff morale and retention, the scheme should help motivate staff if competitors were to enter the region, he says.


Despite current like for likes being ahead of his expectations, the analyst has left his forecasts unchanged to reflect the losses from store openings in new countries - Bulgaria, Romania and Hungary.




IF Worthington and his team had done their figures correctly,. then apart for THE INITIAL capital expenditure which is written down OVER A PERIOD OF YEARS all new stores should be showing a trading profits at the end of day one extracted from the daily cash-flow over the counter takings


Numis anticipates current year pretax profits of 300,000 and earnings per share of 0.3p, rising to 500,00 and 0.4p in 2008; and 1m and 0.7p in 2009.


OK THIS IS LAUGHABLE. ITS OBVIOUS COH ARE RATHER COY ON WHAT THEY ARE SPENDING ON STORE OPININGS/---SO LET ME BE FAIR TO THEM.

TAKING THIER FIGURES---THEY NOW HAVE 67 STORES GIVING PRETAX PROFITS OF 300000 RIGHT ?

SO THAT MEANS THAT ON AVERAGE EACH STORE IS MAKING BEFORE TAX JUST 448 IN PRE TAX PROFITS!!!----THATS A JOKE!!

AFTER 7 YEARS IN BUSINESS ITS JUST PLAIN HILARIOUS.

COH appear to have dived in the market place with no consideration whatsoever for operating cost and cost control.

Numis would be better off advising you of which "store is actually" making money and closing the ones that are not.

For 448 per annum perhaps its worth even less that the generous NAV I applied to it.
.

Total bollox... you are blinkered by your losses on BKE...

David,

Let them get on discussing the share - you have made your point on numerous occasions and I see no reason to continue.

I receive almost daily complaints about this thread, and this bickering must now stop on both sides.

Ian

IanT
Hear, Hear matey!!
:>)

Totally agree...

ADIEH of course you as I affect you the most.


Ian I dont mind anyone discussing their shares, but here is blantant ramping.

Not only that I am the brunt of their rudeness and ignornace I dont mind as it clear shows weak characters.

I can undertand you getting daily complainst as according to may nail box many have not bought this share and have thank me for my postings, as had they done so they would be sitting on a loss.

I am more than prepared to accept any critism but only when I an wrong!!!!

Since my first post here on COH, which came many years after registering for the site, and was prompted by the rampings of ADIEH, I have not been proven wrong on COH, NOR INDEED ON ANY OTHER STOCK AVE POSTED ON.

If you prefer the mindless gobbing of rampers---then I am affraid there is nothing more that I can contribute, AS i WANT TO MAKE MONEY FROM THE MARKET AND I WANT OTHERS TO DO SO AS WELL---NOT JUST RAMP MY OWN HOLDINGS

David,

The issue here is that for around 2 months now, the same debate has raged on this thread, essentially your negative point of view to the company, and others more positive view about the company. This discussion has been documented on this thread continuously over the past 2 months.

I am not here to say who holds the correct point of view, and I am not here to stop debate, but this discussion often becomes personal on both sides, and many users are not able to enjoy the thread due to this.

May I make a suggestion to all. please squelch any user whom you do not wish to view - then you can enjoy the debate of those you do wish to view and not have to worry about the postings of those you do not wish to view.

At the moment, this thread is the only thread we are receiving complaints about on either of our 2 bulletin boards.

As I have said time and time again debate is fine, but an ongoing debate of contrarian views which has not changed over the past 2 months is pretty meaningless to be honest.

Everyone has stated their view - now squelch away and get back to sensible debate.

Ian

Ian with respect a debate on a company will continue while that company does. BBs and the compnaies themsleves thrive on that.

I said from my sendon post on COH to let te SP nw talk as had made my point.

And it is far from meaningless that COH has fallen as I said it would as opposed to rising past 50p as the majorty pushed for.

If you care to read back the documented posts you will find that it was not I who was rude and aggressive, these are the reactions of barbarians.

Furthermore I have requested in public that certain persons, if they do not like what I have to say---simply dont respeond to my posts----but its seem that like all good fans the are drawn to what I have to say----and I cant help that.

End the debate, simply just prove me wrong on COH or please let the SP do so.

You see if certain posters here also stopped their mindless posts then I too would have nothing to say---would I?

Thank you Ian for at least pointing out the obvious, lets get back to COH and totally agree about the squelching...

Ian with respect

I am quite happy to leave the BB, I give it too much time in any event.

However please allow me to ask one open question.

If I am such an ignornant unknowledge idiot, why are they so affraid of what I have to say---best would be to laugh at the fool would it not!

After all if I know nothing, what harm could I possibly do?

David it has nothing to do with you having a negative stance, it is your constant tirade against Richard Worthington, which is unfounded... I welcome other views including negative views as it makes me take stock of my position but everything is pointing towards COH being a good future investment and your stance is possibly putting potential investors off because of your view of Richard Worthington. I have seen no other person giving a valuation of 6p - 30p on COH the broker is giving a value of 66p...

It was another poster there that mentioned the NAV initially.

I have not said one word out of place in relation to WORTHINGTON.

If you think that I have I have please show me and I WILL RETRACT IMMEDIATELY.

As Ian says lets move on, we know your stance you know yourself the comments you've made on share holders monies and where it is disappearing this comment itself is aimed at Richard Worthington as the CEO of COH... I am not going to cut and paste all these comments... Lets agree to disagree and move on and as you've stated let the SP do the talking and maybe we will review our current positions in 6 months time... No more comments from me. Regards.

Adieh lets be clear here, I asked you to let the SP talk after my second post---FULL STOP!

Its the shareholders' money that I am concerned over, and ultimately the buck stops with Mr Worthington.

You can cut and paste as much as you like.

Send me an invitation to the next AGM as an interest party with shall we say a locus standi interest in the name of fair play.

I have nothing more to say, until that is you start ramping again ,ie 1 within a year etc.

The ball is with you.

Another large buy at the end of the day, seems to be a pattern here, find it strange that we haven't been issued an RNS maybe it is Lehman again... if so we should be due an RNS, does anyone know at what point they have to keep updating last time was about a million increase?

as the chart in the header shows, there is a fair amount of resistance around this level so it is not unreasonable to see sp taking a breather after its recent rises .... so long as it does not tumble dramatically, even if only brought about by general market malaise, it is not unreasonable to expect sp to take a run at getting through the 44p barrier ...... i suspect it will take more than one effort to do so, but once that happens, there is good upside potential.

On what do you base your good upside potential cynic, it would be nice to get an intelligent point of view.

as i inexpertly read these things, it seems to me that there is only slight resistance at 46 and then nothing until the all time high is reached at about 50 ..... this latter will probably prove a reasonably stern psychological barrier, but of course after that, one is in clear water.

that said, and i have said it before, it gives me concern (or it would do if i was investing my money) that COH does not seem to have a solid homebase, yet it thinks it has the knowledge and strength and financial and organisational skills to open up willy-nilly abroad ...... feels to me like a great leap of faith for both the management and the investors!