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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

kandrews250 - 04 Feb 2004 21:06 - 31 of 2037

well we seem to be waiting for the year end results. Hope to see another push. Overgrowth or roma any news on this one. The steady sells are getting the profit takers out, I think this could move on smallish vol if y/e report is up beat. Interested in your spin.

roma - 12 Mar 2004 12:07 - 32 of 2037

Pushing ahead with new openings, 1st store in Prague (makes 20 stores) should
open soon, two more under negotiation in Prague& Czech Republic 2nd city Brno. 3 more expected to be oened in Poland by end of this month. All buys,no sells,so far today.

ptholden - 12 Mar 2004 14:52 - 33 of 2037

ptholden - 12 Mar 2004 14:58 - 34 of 2037

Slightly off COH but coffee related. Don't know if you guys have had a look at CFN recently. I have just posted on the CFN thread, asking why there is so little interest on this site's BB in Caffe Nero? Nobody showing an interest in posting a reply though! LoL!
Same sort of business and they are having a great time. I appreciate we are looking at different scales of business, but it does show what is achievable.

Rgds

PTH

kandrews250 - 12 Mar 2004 18:08 - 35 of 2037

Might be the fact that it is base in Poland, it was a concern of mine but the upside at this price has to be positive... I hope so for my portfolios sake. The problem is the coffee shop sector in the UK has had a bad time due to saturation, do not see this as an issue but is obviously going to be a slow builder.

roma - 02 Apr 2004 11:39 - 36 of 2037

Good news today. 22nd store at Warsaw Airport now opened, meets target of 22 stores by end march 2004. In 27 months gone from 5 stores to 22 stores
57% increase in sales y/e 31/03/2004.
8 new stores to be opened in Poland in 2004.
Expects to open 18 stores in other central european countries, principally the Czech Republic by 2007.
Share price moving up.

georgeski - 03 Apr 2004 10:42 - 37 of 2037

I think with time this share could be a mortgage payer.
COH are aiming at an untouched market and if they continue expanding at this rate. One of the bigboys is going to have to buy them out if the want to expand into Eastern Europe as they will have taken all the best sites.
I don't think its going to happen overnight but at these prices its a great chance to get in whilst they are still only a penny share.
I am constantly adding on the lows to build up a 1million share stake, then i'll put it away and wait.

paragon - 04 Apr 2004 21:29 - 38 of 2037


I take a similar view georgeski.

Added 2 x 150k Friday morning.

I told a Polish mate to keep me in touch with any news.

Add, hold and wait appears to be the right strategy

kandrews250 - 27 Apr 2004 18:10 - 39 of 2037

HI oneill, I have been in on these since sub 1p and have always looked on as long term but can not see the entry will effect the price, hope it does. Still think the EOR report may move it as I hope the new bars and the sorting of the distribution network will show benefits on bottom line. I think the major longer term will be when there are 30 / 40 in the chain and bigger boys look to buy them out. Funny this share has alot to offer but does not seem to get much attention. All IMO and lets hope it has a jump soon.

kandrews250 - 28 Apr 2004 18:29 - 40 of 2037

Must admit I was worried about the fact that the company was based in Poland and finally made the jump, good point about the costs, if i remember correctly most of their last loss was due to the aim listing expenses. At this cost there can not be much downside so I will just tuck away and forget for a couple of years. As you say the problem is the cost of living over there, the only way they can make the money to attract profits suitable for UK investors will be on size / number of outlets. If the tourists do start then this may well change the turnover. We will have to wait and see. lol

overgrowth - 08 May 2004 14:51 - 41 of 2037

COH are expanding rapidly and need to ensure that they have the financing to enable them to continue with the aggressive roll-out.

The EGM allows shareholders to vote on giving the directors powers to raise capital in the most appropriate way for each new market beyond Poland.

roma - 13 May 2004 13:24 - 42 of 2037

After the drops this week, I was waiting for a drop in the offer price, looked like a good chance to top up, no such luck,only the bid price dropped, and now bid price recovered to above the closing price last week. Better luck next time maybe?

overgrowth - 11 Oct 2004 20:24 - 43 of 2037

I've still got some COH in the bottom drawer. A very informative piece in the Independent today:

http://news.independent.co.uk/business/sme/story.jsp?story=570422

stockpick - 11 Oct 2004 21:03 - 44 of 2037

Thanks for the link, I have some put away and I am a little tempted to add a few more, just think there is still a way to go so might go elsewhere for a while. LOL for the future

overgrowth - 11 Oct 2004 21:07 - 45 of 2037

stockpick - I agree, a little boring right now but a stonking great LOL for the future indeed.

pthwaite - 20 Oct 2004 10:40 - 46 of 2037

Looks like good news from COH today! 'o)

Up 7.6% so far!

http://www.moneyam.com/action/quote/showQuote?epic=COH

pthwaite - 22 Nov 2004 07:47 - 47 of 2037

I truly believe this stock will do well medium to long-term. It is not
easy to run a successful coffee busines, especially in countries such as Poland. However, the lack of major competition, and Poland's recent entry into the EU are positive factors that will push this company forward.

The market makers refuse to give this stock a decent spread; when the share price moves upward, the spread moves up to counter balance it, rather than increasing the bid price. Does anyone know why this happens with COH? Is it simply the case that COH is a risky penny share and the MM's want to make some money?

I'd be interested to hear other people's opinions on COH?

Pthwaite

shareshark - 22 Nov 2004 09:57 - 48 of 2037

Well I bought in on Friday after the interims - did an hours research and decided to buy while the price was sub 1p in 4 tranches - now holding 1m shares.

Agree with overgrowth and others - this looks a very good opportunity to buy a good sized stake in a small company in its infant stage - central/eastern Europe looks a cert for Westernisation and COH are at the forefront of entering the coffee market in these areas before the crowd - it all adds up to a great buy and hold share for the pension fund IMO.

Dave

AdieH - 22 Nov 2004 10:07 - 49 of 2037

Agree, great to get in on the bottom floor...

richie1saunders - 22 Nov 2004 21:36 - 50 of 2037

Patience will bring its reward with COH I think. A little research into the 'Good Food and Drink Guides' of Warsaw and Prague reveal some great feedback for COH stores. The concept is certainly excellent, and the team seem to have a quality product and some snappy marketing to back it up. Millions of potential and increasingly affluent customers, not much (similar) competition, huge investment into the new EU states....mmmm worth a dabble I think..patience. Incidentally I e-mailed the company recently because I was having trouble with a couple of the links on their website. Got a swift reply from Mr Worthington himself and then one from their web manager. Reasonably impressive service I suppose!
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