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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

harding1 - 08 Oct 2003 11:18 - 4 of 2037

yes did you read what coffee republic are doing? taking away all their comfortable chairs to make you a 5 minute coffee drinker. Pay nearly 2 for a coffee and not have somewhere comfortable to drink it? I think not. I begrudge paying 2 for a coffee anyway, the public will soon realise that the only ones winning are the coffee shop owners. Then the share prices will plummet. I agree they are fads. The real coffee shops with decent coffee and good meals will be the winners - where ever they are... put my money on them...

overgrowth - 08 Oct 2003 20:57 - 5 of 2037

Provided that you can get some much required snack food (sandwiches, cookies etc.) and a hot drink (particularly in colder countries), I can't see well placed coffee bar outlets going out of fashion.

Look at the brisk trade that coffee bars do (and have done for the past 10 years +) in the middle of shopping malls and at railway stations - they have a captive audience if the placement is sound.

I agree that in the UK, because coffee bars are now everywhere you turn, that they can easily go out of fashion. Students particularly will boycott the new Coffee Republic as being totally "untrendy" simply because they won't be able to laze there all day for the price of a single cup of coffee.

Coffee Heaven in Poland and the Czech Republic may well end up in the same position as Coffee Rebulic in the UK, though I reckon that it will be at least 10 years before this happens, meanwhile we will have all made our fortunes and be long gone :-)

washlander - 08 Oct 2003 22:10 - 6 of 2037

Wait till Star Bucks gets in and Costa. Then they will greatly reduce the competion to 2nd row. To risky for me thanks

kal-el - 09 Oct 2003 11:26 - 7 of 2037

Washlander that is a good point, however COH have a foot in the door already which means if they have any sense at all they will already have the prime locations under significant contracts, also if they do a good job of it and become "the" coffee bar in Poland when the likes of Star Bucks etc want in they will at least consider bidding for COH which wouldn't do the share price any harm.

washlander - 09 Oct 2003 16:50 - 8 of 2037

Anything American in the Old Eastern Bloc is swallowed with gusto eg. McDonalds, Kentucky. Star Bucks is as American as you can get. I truly wish you luck but using Coffe Republic as bench mark, I see it as a long shot.

overgrowth - 09 Oct 2003 21:11 - 9 of 2037

As Kal-el rightly points out, the chances are that COH will either sweep the board or become a juicy takeover target.

I also agree with washlander that this one is not for the feint hearted, though you've got to speculate to accumulate and all that. Provided you don't go overboard and get over-exposed in COH shares, then they should become a tidy earner.

Of course, if you have stacks of cash, and can take a risk, then COH could just be the share that gives you significant returns over a 3 year period.

overgrowth - 09 Oct 2003 21:45 - 10 of 2037

Forgot to mention - have a look at the website for more info:

[url]www.coffeeheaven.eu.com[/url]

overgrowth - 09 Oct 2003 21:46 - 11 of 2037

Damn - the [url] "direct link" trick doesn't work here.

Here's the site:

www.coffeeheaven.eu.com

ajren - 11 Oct 2003 17:45 - 12 of 2037

I agree with Washlander and Overgrowth.My worry is that McDonalds...etc
are very easy targets for N.York sept 11 type terrorists.

overgrowth - 21 Oct 2003 00:03 - 13 of 2037

COH up again nicely today. Not much volume, though it appears that interest is increasing. Investors must be cottoning on to this one at long last.

overgrowth - 04 Nov 2003 20:10 - 14 of 2037

Strange that COH is up 20% today on a tiny volume (though I'm not complaining). Does this mean that the MM's know there's good news just around the corner and would prefer to sell at a higher price (considering that they let the price slip over the past couple of weeks on very low volume also).

Or is a big buyer waiting in the wings? Anyone heard any rumours ?

It looks more and more that this company is destined for very big things.

overgrowth - 04 Nov 2003 20:28 - 15 of 2037

I've just spotted on iii rumours of EGM on 17th Nov. - could be interesting...

overgrowth - 18 Nov 2003 20:26 - 16 of 2037

Here's the latest folks. This company is expanding rapidly and will either become THE coffee shop chain in Eastern Europe or be bought out by Starbucks or similar - either way it's pound signs for us :-)

LONDON (AFX) - Coffeeheaven International PLC, operator of speciality
branded coffee/sandwich bars in Poland, said trading in the first few weeks of
the second half is in line with expectations and its trading unit CHI Polska
(CHIP) is on target to achieve 50 stores by the end of 2006.
It also reported interim results for the six months period to Sept 30 2003,
which saw sales from the Polish stores almost double to 1.01 mln stg from
596,000 stg a year earlier, while on a like-for-like basis, they were up 20 pct.
Pretax loss on ordinary operations widened to 108,000 stg from 13,000 stg a
year earlier, and loss per share stood at 0.09 pence compared with 0.04p.
Coffeeheaven said it has made significant progress towards opening the first
branded store in the Czech Republic and it hopes to enter at least one other
central European market in the near term.
The group continues to actively pursue acquisition opportunities in Poland
and elsewhere in central Europe.
However, Coffeeheaven cautioned that currency effects could adversely affect
impact the second half.
To date weakening of the US dollar and strengthening of the euro against the
Polish zloty has resulted in a broadly neutral profit impact for CHIP, it said.
"Although CHIP has fully hedged its US dollar rental exposure at favourable
rates through to March 31 2004, CHIP has not at the date of this report hedged
its euro position. Accordingly a significant further strengthening of the euro
against the sloty could negatively impact the second half results," it added.
newsdesk@afxnews.com

overgrowth - 27 Nov 2003 21:19 - 17 of 2037

Just in case anyone is "lurking" with an eye on COH, here's an interesting interview with the FD:

http://www.financialdirector.co.uk/Features/1135436

roma - 21 Jan 2004 09:14 - 18 of 2037

Trading Statement out today. Just contracted key airside site at Warsaws International Airport.(18 stores already opened) Trading in 3rd Qtr,like for like sales up 15%. Total sales up 45%.plus inproved profit margins,at a price of 1.15p, might be worth a small investment.

roma - 21 Jan 2004 12:37 - 19 of 2037

The trading statement seems to have helped today,up 54% to 1.35p.

overgrowth - 21 Jan 2004 21:42 - 20 of 2037

Plenty more to come with this one - just wait until Poland hits the EU in May/June :-)

roma - 22 Jan 2004 14:25 - 21 of 2037

Buys 13m sells 2m,no movement on prices? Spread a lot bigger than yesterday.
Seems the MMs are making plenty of money.

kandrews250 - 22 Jan 2004 20:35 - 22 of 2037

Have been looking at these for some time but as with the other comments I am concerned that the price may now pull back. I feel that the spread is to wide and feel that March is the time to look. I am not sure of the full potential or price target as they will be a long time building the chain. Anybody got a feeling ?

roma - 22 Jan 2004 22:17 - 23 of 2037

I can't understand,price pull back, from where? Company will take a long time to build? They already have 18 outlets,with another in the pipeline in Warsaw Airport. As Overgrown states Poland will join the EC shortly.
This will give them even more chance to expand. The shares are only 1.33p so how much chance are you taking? As usual you must DYOR and only invest, if you are willing to take a chance.Good luck in whatever you decide.
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