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.)
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
silvermede
- 03 Jan 2006 15:46
- 317 of 2037
Today's RNS:
Coffeeheaven International PLC
03 January 2006
coffeeheaven international plc (the 'Company')
Holdings in Company
The Company was notified on 29 December 2005 that following the acquisition of
350,000 ordinary shares FMR Corp. and its direct and indirect subsidiaries, and
Fidelity International Limited ('FIL') and its direct and indirect subsidiaries,
both being non-beneficial holders, together hold 9,646,079 ordinary shares in
the Company, which represents 9.08% of the issued share capital.
The Company was also notified on 30 December 2005 that Schroder Investment
Management Limited hold 4,545,455 ordinary shares in the Company, which
represents 4.28% of the issued share capital.