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Coffee Heaven - A heavenly share for penny punters ? (COH)     

overgrowth - 06 Oct 2003 22:47

underground01_2.jpgA 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.’

Chart.aspx?Provider=Intra&Code=COH&Size=Chart.aspx?Provider=EODIntra&Code=COH&Si

sjtee - 08 Nov 2005 18:15 - 287 of 2037

Certainly different from the last few months. Any sales then were immediately marked down. Seems a lot more positive probably the increased news coverage over the last week. Long may it continue

dclinton - 10 Nov 2005 21:06 - 288 of 2037

Hmm. Interesting to see if 1.3 becomes a new support level after being a resistance for so long.

AdieH - 17 Nov 2005 15:53 - 289 of 2037

RNS states that new shares were oversubscribed by 203% (i think that is correct), looking very good for the future... will be interesting to see what the support level will be...

richie1saunders - 17 Nov 2005 21:43 - 290 of 2037

Yes just looked at the RNS, great support for the open offer. Hope we hear of more plans for the future on Monday at the EGM.

AdieH - 18 Nov 2005 08:23 - 291 of 2037

I will be going to AGM so will be asking about expansion plans etc but guess others will also ask those questions too...

richie1saunders - 18 Nov 2005 17:49 - 292 of 2037

AdieH, I can't make it to the EGM but would be very interested to hear your feedback from the meeting.

richie1saunders - 23 Nov 2005 10:08 - 293 of 2037

So here we go then - placing, open offer and consolidation complete. Any good feedback form the EGM?

AdieH - 23 Nov 2005 18:34 - 294 of 2037

Yes placing went well, price held up, things should start moving once AGM out of way and expansion starts to happen at a faster pace... Will post some notes once i've attended the AGM...

stockdog - 23 Nov 2005 20:56 - 295 of 2037

Disappointing how small the open offer was after all compared to demand - only got a few 100's instead of the 1000's applied for.

Pleased it went well and probabl not tooo much of an overhang as the institutions offload the placing.

sd

silvermede - 27 Nov 2005 10:25 - 296 of 2037

Extract from Saturday's Times newspaper page 75 Busines, Markets, Small Caps:

"Coffee heaven International the coffee bar operator focussed on Central and Eastern, added 1/4p to 12 1/4p as Fidelity emerged with an 8.75 per cent stake after last month's million fundraising."

Whilst only a comment, it raises visibility.

silvermede - 30 Nov 2005 10:12 - 297 of 2037

Extract from the Independent Newspaper 30 Nov 05 Business Analysis Section:

"Finally, Coffeeheaven, unchanged at 12.5p, announced that Bill Currie, the former star retail analyst at BZW, had taken a 9.4 per cent stake in the Eastern Europe-focused coffee shop group. Mr Currie is believed to have picked up the bulk of his stake in the company's recent 6.3m fundraising, which is also said to have been supported by a series of heavyweight institutions."

A serious stake in this promising company.

stockdog - 30 Nov 2005 13:49 - 298 of 2037

Notice now being taken - up 2.25p at 14.5o just now

sd

AdieH - 30 Nov 2005 14:34 - 299 of 2037

AGM will be interesting on Friday, COH exposure being built up nicely now, 11p hopefully is long gone now, will report back on AGM over the weekend.

richie1saunders - 30 Nov 2005 20:10 - 300 of 2037

Another interesting day! Thanks AdieH - look forward to your report!

Ted1 - 05 Dec 2005 14:16 - 301 of 2037

Excellent news with more institustions investing and lots more smaller buys today.
All looking good.

Coffeeheaven International PLC
05 December 2005


coffeeheaven international plc ('coffeeheaven international' or the 'Company')

Holdings in Company

The Company has been notified today that Investec plc is interested in 3,979,747
shares in coffeeheaven international, which represents 3.74% of the issued share
capital (which includes a 3.54% material interest and 0.20% non-material
interest).

The Company has also been notified today that following the recent placing and
open offer Diggle Investments Limited now holds 3,890,157 ordinary shares in the
Company, which represents 3.66% of the issued share capital. (Richard
Worthington, Executive Chairman of coffeeheaven international, is a director of
Diggle Investments Limited.)

AdieH - 05 Dec 2005 16:46 - 302 of 2037

I have my notes from the AGM, which only 5 share holders attended! If anyone wants the notes let me have your email addy and I will forward.

Regards

Adie.

Ted1 - 19 Dec 2005 10:33 - 303 of 2037

Very positive outlook from Mr Worthington. This has got
to be the biggest multibagger on AIM.
Will be topping up.
Merry Christmas!


Coffeeheaven International PLC
19 December 2005



COFFEEHEAVEN INTERNATIONAL PLC

Interim Results for the Six Months ended 30 September 2005

coffeeheaven international plc (the 'Company' or 'Group'), the operator of
specialty branded coffee/sandwich bars in Central Europe, presents its interim
results for the six months ended 30 September 2005.

Highlights

Turnover up 74% to 2,732,000 (2004: 1,573,000) - 56% at constant
exchange rates.

Increase in like-for-like sales of 6% for the six months to 30 September
2005 (8% for the eight months to 30 November 2005).

42 stores currently trading (Poland: 30, Czech Republic: 5, Latvia: 7)
with a further 2 under construction.

Successful Placing and Open Offer raising 6,200,000 (before expenses)
completed November 2005.

Cash inflows from stores up 57% to 582,000 (2004: 370,000).

Group EBITDA 65,000 (2004: 49,000) after charging all corporate
expenses and new market development and acquisition costs.

Group loss before taxation for the six months to 30 September 2005
378,000 (2004: 233,000 loss) after charging 134,000 (2004: nil) of losses
in respect of new markets and interest (net) 133,000 (2004: 110,000).

Acquisition of stores in Latvia completed.

Richard Worthington, Executive Chairman of the Group, commented:

'These results again demonstrate that coffeeheaven remains firmly on track to
become one of Central Europe's leading branded coffee/sandwich bar retailers.
Our successful Placing and Open Offer enables the Group to repay all debt
funding and provides capital for the next phase of expansion.

With representation in several Central European markets, the Group continues to
make solid progress towards our longer term goal of regional presence across the
dynamic markets of central Europe.'

For further information please contact:

Richard Worthington, Tel: +48 606818850 or +44 7973 442331
coffeeheaven international plc

Simon Turton Tel: 0845 0600650 or 07976 826004
Opera Public Relations

Jeremy Porter Tel: 020 7107 8000
Seymour Pierce Limited

Chairman's Statement

I am delighted to present the Interim Statement for coffeeheaven international
plc covering the 6-month trading period to 30 September 2005.

Overview

The period under review has seen significant progress in all markets.

The focus of activity and specific milestones achieved during the period are as
follows:

Placing and Open Offer to secure 6,200,000 of new equity funding
completed.

CHI Polska SA ('CHIP'), our Polish trading subsidiary, currently moved
into pre-tax profit.

Positive Group EBITDA benchmark maintained despite significant one-time
development and similar expenditures.

Acquisition of stores in Latvia completed.

Solid sales growth in all markets.

Further international recognition of the coffeeheaven(R) brand.

Summary of Financial Results

Overall the Group has performed financially at or close to your Board's
expectations.

Group turnover for the period was 2,732,000 (unaudited) (2004: 1,573,000), an
increase of 74% over the prior year same period (56% at constant exchange
rates).

Combined net cash inflows from store operations increased 57% to 582,000
(unaudited) (2004: 370,000) representing 21.3% of sales. Like- for- like net
cash inflows from store operations (excluding the impact of new markets) was
24.0% of sales (2004: 23.5%).

The pre-tax loss on ordinary activities at CHI Polska SA (Poland) after
exceptionals was 28,000 (unaudited) (2004: 127,000) and is stated after
charging interest expense (net) on bonds of 124,000 (2004: 110,000). Sales
during the period have been robust.

The pre-tax loss on ordinary activities at CHI Czech s.r.o. ('CHIC') (Czech
Republic) was 126,000 (unaudited) (2004: nil) and is stated after interest
expense of 5,000 (2004: nil). CHIC commenced trading on 28 September 2004 and
after an initially soft start, sales are now growing rapidly.

The results for SIA Coffee Nation ('CNL') (Latvia) cover the four-month trading
period from date of acquisition on 1 June 2005 to 30 September 2005. The pre-tax
loss on ordinary activities of 8,000 (unaudited) is stated after charging
interest expense of 4,000. Sales growth has been exceptionally strong and CNL
is already generating positive cash flows from operations.

Combined like- for- like overhead growth (at constant exchange rates) has
remained below 15% at operating company level - a significantly lower rate than
store margin growth.

The Group pre-tax loss of 378,000 (2004: 233,000) is stated after charging UK
administration expenses of 109,000 (2004: 88,000), new market development
expenses of 54,000 (2004: 18,000), international administration expenses of
41,000 (2004: nil) and unrealized foreign exchange losses of 12,000 (2004:
nil). A full analysis of these expenses is set out in the notes to the financial
statements.

A major activity during the period has been fund raising. This resulted in a
Placing and Open Offer that exceeded our target of 6,200,000 (before expenses)
and closed in November 2005 with the Open Offer element being oversubscribed by
105%. A number of financial institutions now hold significant equity interests
in the company. The proceeds of the Placing and Open Offer are being applied to
pay down the Group's entire debt of approximately 2,900,000 (including the
purchase and cancellation of all outstanding bonds amounting to some 2,600,000)
with the net balance being allocated to store development. The foregoing will
result in annual interest savings for the Group of some 270,000.

Unless otherwise stated, all comparative figures shown above have not been
restated for foreign exchange movements. However all comparative figures in the
financial statements for the period set out below have (unless otherwise stated)
been restated at 30 September 2005 foreign exchange rates to provide constant
exchange rate comparatives.

Operational Review

Poland

The last six months has been one of the best trading periods in CHIP's history.

Not only have sales exceeded your Board's expectations but margins have
improved, operating cash flow growth has been strong and most importantly CHIP
recently moved into month-to-month pre-tax operating profit.

Sales in the period to 30 September 2005 grew 49% (33% at constant exchange
rates) to 2,338,000 (2004: 1,573,000). Net cash flows from store operations
represented 24.0% of sales (2004: 23.5%). Overhead growth (at constant exchange)
has remained below 15%. Pre-tax profits after all charges but before interest
were 96,000 (2004: 17,000 loss).

Like- for- like sales growth for the 6 months to 30 September 2005 was 4%. This
increased to 6% cumulatively for the 8 months to 30 November 2005.

4 new stores have been opened in the year to date and a further store is under
construction. Our target of 6 new store openings in the current financial
remains unchanged.

Czech Republic

In recent months we have seen significant improvements in sales at most of our
Czech stores as awareness of the coffeeheaven brand increases.

Sales in the period to 30 September 2005 were 223,000 (2004: nil). Net cash
flows from store operations were marginally negative at 4% of sales (2004: nil).
Overheads represented 19% of sales. Pre- tax losses after all charges but before
interest were 121,000 (2004: nil).

In the first two months for which comparative data is available (October and
November 2005) like -for- like sales growth was strong and this trend appears to
be continuing.

Two new stores recently opened in Prague including one on Na Prikope Street,
named in a recent survey by consultants CWHB as the 18th most sought after
retail shopping street in the world. These new stores bring the total estate in
the Czech Republic to 5.

Latvia

The acquisition of SIA Coffee Nation Limited was completed on 31 May 2005. Sales
revenues and operating results remain ahead of your Board's expectations.

Sales in the 4 months to 30 September 2005 were 171,000. Net cash flows from
store operations were 32,000 representing 19% of sales. Overheads were 9% of
sales. Pre- tax losses after all charges but before interest were 4,000.

Like- for- like store sales growth in the 8 months to 30 November 2005 was a
robust 21%.

We are presently working through a programme of retro- fitting certain stores
and one new high street store is currently under construction in Riga. In
addition we are also looking to make some near term rationalisation of the
estate. The likely net effect of these changes will be a marginal decline in
sales revenues but a significant increase in profitability.

Other markets

In Bulgaria our small management team is now in place. Plans are well advanced
for an expected March 2006 opening of our first store in Sofia in the new Mall
of Sofia. Further potential sites are under review.

In Romania, although several locations have been reviewed, we have yet to
contract a first site for immediate occupation. We are however close to securing
a number of locations in new shopping malls and other developments, planned for
opening in 2007 and beyond. As in our early years in Poland, we are looking to
secure forward site contracts to provide a new store opening pipeline.

In other markets we are following up a number of potential opportunities.

coffeeheaven Brand

In September 2005 coffeeheaven was nominated for a prestigious MAPIC award for
exceptional development in the Polish market. Through these awards MAPIC, the
leading market for the expanding industry of international real estate, has for
more than 10 years been recognising retail companies for their outstanding
development in terms of expansion and originality of concept. The event was held
in Cannes, France in November 2005 and this year MAPIC hosted some 7,200
participants representing 1,588 retail developers from 68 countries. Such high
profile exposure to so many of the world's leading retail developers is likely
to further enhance our ability to secure the best locations for coffeeheaven
stores in our chosen markets.

Markets - Poland, Czech Republic and Latvia

The Polish economy remains buoyant with expected GDP growth of 3.0% for 2005
coming off an actual 5.3% for 2004. Consensus growth for 2006 is 4.6%. Despite
going political uncertainty, the new government seems to be taking a broadly
pro-business stance. In particular, there has been no major foreign exchange
movement in the value of the Polish zloty. Strong domestic demand, coupled with
inward investment following EU accession, is providing the robust economic
background that is an important driver for our business.

In the Czech Republic, GDP growth for 2005 is likely to be 4.8%, with a
consensus of 4.4% for 2006. Retail sales growth for 2005 is expected to be
around 2.7%. As we build out the coffeeheaven estate in Prague, the city's
tourist traffic will become an increasingly important business driver for
coffeeheaven. Year on year Czech tourism - mostly to Prague - is expected to
have increased 9% by the end of 2005 to some 8.6 million visitors.

In Latvia, the economy is growing at a rapid 7.5%; a figure much in line with
average annual growth since 2000. Annual retail trade growth is running at 20%.
A major challenge for the government is inflation, which, at 6.5%, is the
highest in the EU. Growth in tourism remains robust with airline passenger
numbers up 85% during the first half of 2005. It is anticipated that more than 5
million people will have visited the country - mostly to Riga where all our
stores are located - in 2005. This, combined with strong economic growth, is
fuelling our business in the Latvia market.

Outlook

Currently the Group has 44 stores trading or under construction in 3 markets
across Central Europe (Poland: 31, Czech Republic: 5, Latvia: 8).

Sales in the first weeks of the second half-year have been above expectations in
Poland and Latvia and closer to expectations in the Czech Republic. Foreign
exchange rate movements in all markets remain benign.

Based on current trading trends and present foreign exchange rates to the pound
sterling, we expect to exceed our previously indicated Group sales revenues of
5.7 million (2005 - 3.6 million) for the year to 31 March 2006.

Subject to host shopping malls opening on time, we expect to achieve our
previously indicated target of 10 new store openings in the current financial
year to 31 March 2006. In addition a further 9 sites are contracted or with
terms agreed.

In Poland our business is now generating month- to- month pre-tax profits and
our new business in Latvia is already operating at or close to breakeven. In the
Czech Republic, strong like-for-like sales growth and encouraging initial
results from recent new store openings is delivering significant improvements to
trading results.

It is expected that repayment of all existing Group debt (including the purchase
and cancellation of some 2.6 million of Polish bonds) will be completed
shortly. This will result in annual interest savings for the Group of some 0.27
million.

Opportunities in the central region of Europe for the continued development of
coffeeheaven are significant. The recent successful Placing and Open Offer
raising 6.2 million of new equity, provides the Group with the resources to
fully exploit the opportunities presented by these dynamic markets.

Your Board and our dedicated management teams in central Europe look to the
future with enthusiasm and confidence.

Richard D. Worthington
Executive Chairman

19 December 2005


Group Profit and Loss Account for six months ended 30 September 2005 (unaudited)

Unaudited six months ended 30 September Unaudited
year ended
31 March
2005 2005 2005 2005 2004 2005
Poland Czech Latvia Group Group Group
Republic (4 mths) (Poland (Poland and
only) Czech
Republic
only)
Note '000 '000 '000 '000 '000 '000
Like period comparatives are restated at 30
September 2005 exchange rates
Turnover
Stores - local
market 2 2,338 223 171 2,732 1,752 3,789

Materials and
all store
operating expenses
excluding
depreciation -
local markets (1,778) (233) (139) (2,150) (1,340) (2,979)
---------------------------------------------------------
Net cash
inflows from
store operations 560 (10) 32 582 412 810

Administrative
costs excluding
depreciation
and interest -
local markets 3 (238) (42) (16) (296) (207) (424)

Store preopening
costs - local
markets 4 (10) (7) - (17) (32) (33)
---------------------------------------------------------
Net cash
inflows/(outflows)
from operations
- local market
(EBITDA) 312 (59) 16 269 173 353

Depreciation
store and
other assets -
local market 5 (204) (50) (20) (274) (160) (341)

Exceptional
fixed assets
write off -
local market 6 (9) - - (9) (36) (44)
Other adjustments -
local markets (3) (12) - (15) 5 (16)
---------------------------------------------------------
Profit /(Loss) before
interest and
taxation -
local markets
(EBIT) 96 (121) (4) (29) (18) (48)

Taxation -
local markets 7 (9) - - (9) 40 (8)

Net interest
payable -
local market 8 (124) (5) (4) (133) (123) (223)
---------------------------------------------------------
Profit /(Loss) on
ordinary
activities -
local markets (37) (126) (8) (171) (101) (279)
---------------------------------------------------------
Corporate
administration
expenses - UK 9 (109) (88) (198)

Corporate
administration
expenses -
International 10 (41) - -

Acquisition
and
development
expenses 11 (54) (18) (79)

New market
pre- trading expenses - - (88)

Unrealised
foreign exchange
losses (12) - (31)

Group loss for
the financial
period (387) (207) (675)
=========================================================

Loss per share 13

- Basic (0.08p) (0.06p) (0.19p)
- Fully
Diluted (0.08p) (0.06p) (0.19p)


CONSOLIDATED BALANCE SHEET Unaudited as at Audited
30 September 31 March
2005 2004 2005
'000 '000 '000

Fixed assets
- Intangible assets 12 485 21 35
- Tangible assets 3,033 1,392 2,480
- Investments 191 531 232
------ ------ ---------
3,709 1,944 2,747

Current assets
- Stocks 128 35 111
- Debtors 13 605 378 828
- Investments - 269 231
- Cash at bank and in hand 482 842 661
------ ------ ---------
1,215 1,524 1,831

Creditors: amounts falling due within one
year (525) (124) (609)
Net current assets 690 1,400 1,222
------ ------ ---------
Total assets less current liabilities 4,399 3,344 3,969

Creditors: amounts falling due after one
year (2,678) (1,986) (2,451)
------ ------ ---------
Net assets 1,721 1,358 1,518
------ ------ ---------
Capital and reserves
- Called up share capital 479 357 437
- Share premium 2,744 1,860 2,350
- Capital redemption reserve 740 740 740
- Profit and loss account (2,242) (1,599) (2,009)
------ ------ ---------
Shareholders' funds 1,721 1,358 1,518
------ ------ ---------

CONSOLIDATED CASH FLOW STATEMENT

Unaudited six months Unaudited year
ended 30 September ended 31 March
2005 2004 2005
'000 '000

EBITDA - Local markets 269 155 406

Corporate administration,
development and other expenses - UK (216) (88) (396)

Working capital and other
adjustments 85 (318) (343)
------ ------ ------
Net cash inflow / (outflow) from
operating activities 138 (251) (333)

Returns on investments and servicing
of finance (239) (99) (260)

Capital expenditure (488) (446) (1,093)
------ ------ ------
(589) (796) (1,686)

Acquisitions and disposals (228) - (75)
Management of liquid resources 231 - 169

Financing 131 422 1,094
------ ------ ------

(Decrease) / increase in cash (455) (374) (498)
------ ------ ------

Reconciliation of net cash flow to movement in net
funds

(Decrease) / increase in cash in the
period (455) (374) (498)
Increase in debt finance in the
period - - (101)
Foreign Exchange differences - - (290)
------ ------ ------
Change in net debt (455) (374) (889)

Net debt at start of period (1,649) (760) (760)
------ ------ ------

Net debt at end of period (2,104) (1,134) (1,649)
------ ------ ------

Notes

1. Publication of Non-Statutory Accounts
The financial information contained in this interim statement has not been
audited and does not constitute accounts as defined by section 240 of the
Companies Act 1985. The financial information for the preceding period has
not been audited or reviewed by the company's Auditors but is based on the
statutory accounts for the period ended 31 March 2005. Those accounts, upon
which the Auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.

2. Basis of Preparation of Interim Financial Information
The interim financial information has been prepared on the basis of the
accounting policies set out in the Group's statutory accounts for the year
ended 31 March 2005. For comparative purposes, the Profit and Loss Accounts
of CHI Polska S.A. (Poland) to 30 September 2005 and 30 September 2004 have
been translated using the exchange rate at 30 September 2005 which was
5.7281 PLN = 1. The Profit and Loss Account of CHI Czech s.r.o. (Czech
Republic) has been translated using the exchange rate at 30 September 2005,
which was 43.231 CZK = 1.The Profit and Loss Account of SIA Coffee Nation
(Latvia) which covers a four month period only, has been translated using
the exchange rate at 30 September 2005, which was 1.0180 LVL = 1. The Group
results for the year ended 31 March 2005 have been translated at the rate in
force at that date, which was 5.9291 PLN = 1 and 43.498 CZK = 1. The
Consolidated Balance Sheet at 30 September 2005 is translated at 5.9291 PLN
= 1: 43.498 CZK = 1: and 1.0180 LVL = 1. The Consolidated Balance Sheet
and Consolidated Cash Flow Statement for the comparative half year ended 30
September 2004 have not been re-stated and are translated at the rate in
force at 31 March 2004 which was 7.08146 PLN = 1.

3. Administrative costs - local markets
This represents all overhead costs attributable to the business in
local markets only.

4. Store preopening costs - local markets
This represents expenses on stores incurred prior to opening. Expenses
incurred prior to the first store opening in a new market are shown
separately (where applicable) under New-market pre trading expenses.

5. Depreciation - local markets
This represents the total depreciation charge for all business assets in
local markets including non-store assets.

6. Exceptional fixed assets write off
This represents fixed asset write offs and losses on disposal of surplus or
obsolete assets. In the comparative period the charge resulted from the
closure of one store in Gdansk, Poland. This store was closed in July 2004
due to structural problems within the hypermarket centre in which it was
situated.

7. Taxation
The Directors believe that tax losses available will result in no tax charge
for the period. A deferred tax asset has been recognised in the Balance
Sheet on the basis that the Directors consider it more likely than not that
existing tax losses will be used to reduce the tax charge of future and
current periods. The deferred tax asset has been reduced in the six months
to 30 September 2005 by a deferred tax charge of 8,982.

8. Interest payable
This represents interest and amortised costs of bonds issued in May 2003 by
CHI Polska S.A. (Poland) and bank interest paid by other Group companies

9. Corporate administration expenses - UK
This represents principally costs incurred as a result of the Company's
public listing on AIM, together with Directors' fees for services provided
by members of the coffeeheaven international plc. Board. Costs (including
fees, salaries and expenses) of Directors who perform services in local
markets are paid by CHI Polska SA (Poland) and included in administrative
costs - local markets.



Unaudited six Unaudited
months year
ended 30 ended 31
September March
2005 2004 2005
'000 '000 '000
Directors' Fees for services 26 29 53
rendered in the UK (3 Directors)
AIM , legal and other 39 33 80
professional expenses - UK
Accountancy, administration and 22 18 42
insurance - UK
Audit fees - UK 5 4 11
Other expenses - UK 17 4 12
------ ------ ------
Total UK expenses 109 88 198
------ ------ ------

10. Corporate administration expenses - International
This represents remuneration and other costs incurred in supporting established
local markets but includes an exceptional amount in respect of non- compete and
related expenses amounting to 23,872.

11. Acquisition and development expenses
Acquisition and development expenses analyzed
by market are as follows:

Unaudited six Unaudited
months year
ended 30 ended 31
September March
2005 2004 2005
'000 '000 '000
Czech Republic 3 18 36
Latvia 50 - 29
Other markets 1 - 14
------ ------ ------
Total 54 18 79
------ ------ ------

The costs relating to Latvia are those incurred in periods prior to 1 June
2005, the date upon which the Group acquired a 100% interest in SIA Coffee
Nation.


12 Intangible assets
Intangible assets are as follows: 2005

'000
Trademarks 47
Goodwill and intangible assets 438
acquired during the period ------
------
485
------

Goodwill and intangible assets arise from the acquisition of SIA Coffee
Nation completed on 31 May 2005. This represents the sum of the
consideration paid, principally in coffeeheaven international plc shares,
and net liabilities acquired. In determining net liabilities acquired, the
net book value of SIA Coffee Nation assets at 31 May 2005 has been used.
The Directors consider that the present value of assets acquired is likely
to exceed the net book value. In accordance with FRS 10, an adjustment for
fair value of the separately identifiable assets and liabilities acquired
will completed by the year end and an appropriate adjustment (if any) will
be made in the Group results for the year to 31 March 2006.

13 Debtors
Amounts included in debtors are as 2005
follows:
'000
Cash deposits relating to Group 169
company bank guarantees and
similar contracts
Cash deposits relating to rental 75
contracts
VAT and other taxes recoverable 77
Prepayments 189
Other debtors 95
------
Total 605
------

14 Loss per share
The calculation of loss per share is based on the loss after tax for the
financial period divided by the weighted average number of ordinary shares
in issue during the period. The weighted average number of ordinary shares
in issue for the periods reported were as follows:

Unaudited six Audited
months period
ended 30 ended 31
September March
2005 2004 2005
------ ------ ------ ------ ------
No of Shares
(million)
Basic:
Weighted average number of ordinary 479 348 361
shares in issue

Fully diluted:
Weighted average number of ordinary 479 348 361
shares in issue

15 Availability of Interim Report
Copies of these results will be available from the Company's registered
office at 3 Horsted Square, Bellbrook Business Park, Uckfield, East Sussex
TN22 1QG, United Kingdom for at least one month from publication.
Additionally the Company has posted the interim report on its website,

www.coffeeheaven.eu.com
.




This information is provided by RNS
The company news service from the London Stock Exchange
BDDFBD


AdieH - 19 Dec 2005 10:59 - 304 of 2037

Excellent interims... sp should move a little on this news, now we need to hear whats happening with the capital thats been raised...

richie1saunders - 19 Dec 2005 14:41 - 305 of 2037

Yes, really good stuff. Poland trading better than ever and essentially now profitable, Czechs catching on quickly and Latvian economy booming. From this base add a consistent stream of new stores and away we go.

AdieH - 19 Dec 2005 14:48 - 306 of 2037

Bulgaria is looking good also, looking forward to new store opening in March, there hoping to get a return within 27 weeks....
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