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Coffee Heaven - A heavenly share for penny punters ? (COH)
overgrowth
- 06 Oct 2003 22:47
 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.’ |
richie1saunders - 05 Jan 2005 16:37 - 68 of 2037
Happy New Year to all COH supporters. Looking forward to hearing how the Christmas trading period went.
overgrowth
- 05 Jan 2005 20:03
- 69 of 2037
shareshark - I think we'll be seeing more buys like this through the year - I'm seriously contemplating topping up again with a similar sized chunk myself when I get free some funds.
Happy New Year to you Richie - as more and more outlets are rolled out there will be the inevitable capital expeniture for set-up costs, however once these places are established (and most are in prime locations) we'll have lots to look forward to from trading figures.
As most of the Polish outlets are well established it will be very interesting to see how much clientel they were pulling in during the Christmas period.
Happy New Year to you Richie - as more and more outlets are rolled out there will be the inevitable capital expeniture for set-up costs, however once these places are established (and most are in prime locations) we'll have lots to look forward to from trading figures.
As most of the Polish outlets are well established it will be very interesting to see how much clientel they were pulling in during the Christmas period.
shareshark
- 06 Jan 2005 10:25
- 70 of 2037
Not chuffed with todays announcement - alot of dilution for investors to stomach.
Still good longterm prospects but number of shares in issue has been raised over 20%!
Still good longterm prospects but number of shares in issue has been raised over 20%!
pd1000
- 06 Jan 2005 11:16
- 71 of 2037
Sorry new to this stock: I'm not a holder (yet) - is this announcement right out of the blue? If so, it seems a little hard on existing shareholders, to put it mildly.
shareshark
- 06 Jan 2005 16:27
- 72 of 2037
A hell of a lot of buys this PM - seems like those in the know are snapping up big chunks.
dclinton
- 06 Jan 2005 18:56
- 73 of 2037
Well, there's 80 million new shares to shift.
overgrowth
- 06 Jan 2005 21:11
- 74 of 2037
pd1000 - It's not really hard at all on current holders, it's ensuring the continued interest of institutions who will be committing funds long term.
COH have extremely ambitious expansion plans and if good folks like ourselves invested now want want to sell our shares to Starbucks at 20p a throw in 4 years time and make mega profits, then we have to take the odd discounted fund raising like this on the chin. After all, you can't grow a business at the speed of light without some decent financial backing.
COH in Poland alone has 23 stores established and another 7 planned for opening in the period up to year end (31st March) this year. That will make a potential 40 stores trading at that time all going well.
The sales target for the Polish subsidiary (CHIP) is 3.6M (compared to 2.1M in 2004) and they expect this to be met.
Total revenues will be enhanced by second half income from the 2 new Czech stores and after 31st March we'll be factoring in income from the 7 new Latvian stores.
COH aim to have 18 stores open in the Czech Republic by the end of 2007.
However, they also are still on target for having their planned 50 stores trading in Poland alone by end of calendar 2006.
We're looking at a fast moving dynamic company here which is already well out of the starting blocks and capturing all the prime spots central/eastern European markets before anyone else gets there.
You guys won't be worrying too much about dilution when the sp starts to reflect the 10M+ turnover to come soon.
COH have extremely ambitious expansion plans and if good folks like ourselves invested now want want to sell our shares to Starbucks at 20p a throw in 4 years time and make mega profits, then we have to take the odd discounted fund raising like this on the chin. After all, you can't grow a business at the speed of light without some decent financial backing.
COH in Poland alone has 23 stores established and another 7 planned for opening in the period up to year end (31st March) this year. That will make a potential 40 stores trading at that time all going well.
The sales target for the Polish subsidiary (CHIP) is 3.6M (compared to 2.1M in 2004) and they expect this to be met.
Total revenues will be enhanced by second half income from the 2 new Czech stores and after 31st March we'll be factoring in income from the 7 new Latvian stores.
COH aim to have 18 stores open in the Czech Republic by the end of 2007.
However, they also are still on target for having their planned 50 stores trading in Poland alone by end of calendar 2006.
We're looking at a fast moving dynamic company here which is already well out of the starting blocks and capturing all the prime spots central/eastern European markets before anyone else gets there.
You guys won't be worrying too much about dilution when the sp starts to reflect the 10M+ turnover to come soon.
shareshark
- 08 Jan 2005 19:01
- 75 of 2037
Volume yesterday suggests somethings afoot - over 36m shares traded!
dclinton
- 09 Jan 2005 14:57
- 76 of 2037
But remember that most of those are probably from the 80 million new shares just been issued. Still leaves over 40m to be placed at about 0.75p before the overhang subsides.
shareshark
- 09 Jan 2005 21:00
- 77 of 2037
If thats the case I dont understand.
I thought the shares were being placed with institutions/investors at 0.75p - the trades of the last two days have been 0.94 - 1.05p, with the 2x13m trades at 0.875p trades looking like sells supplying demand.
The new shares have not been issued yet have they?
I thought the shares were being placed with institutions/investors at 0.75p - the trades of the last two days have been 0.94 - 1.05p, with the 2x13m trades at 0.875p trades looking like sells supplying demand.
The new shares have not been issued yet have they?
Ultimate Cynic - 10 Jan 2005 16:21 - 78 of 2037
The screen is completely blue except for one sell of 13.333 shares earlier in the day. So it was yesterday and the day before!
I've never seen this on any share before, there are usually more sells.
I suppose it could be because the bid price is so low with the spread being huge. If the bid moves above 1p the sells will probably start to appear.
Anyone else agree?
I've never seen this on any share before, there are usually more sells.
I suppose it could be because the bid price is so low with the spread being huge. If the bid moves above 1p the sells will probably start to appear.
Anyone else agree?
overgrowth
- 10 Jan 2005 23:32
- 79 of 2037
Some very strange trading going on with all those buys coming through much higher than placement issue price of 0.75p.
As more and more outlets get established, provided business and tourism continues increasing at current rates in central/eastern Europe, a substantial chunk of that extra income will be going straight to the bottom line.
Coffeeheaven is well on track to becoming a large and highly profitable business - this will take them way out of 1p territory.
As the company grows it becomes more attractive, I have a feeling that this could well be the last opportunity to snap up these shares at around the 1p mark.
As more and more outlets get established, provided business and tourism continues increasing at current rates in central/eastern Europe, a substantial chunk of that extra income will be going straight to the bottom line.
Coffeeheaven is well on track to becoming a large and highly profitable business - this will take them way out of 1p territory.
As the company grows it becomes more attractive, I have a feeling that this could well be the last opportunity to snap up these shares at around the 1p mark.
dclinton
- 11 Jan 2005 09:47
- 80 of 2037
Well, I've just taken a small position in these (having freed up some capital after closing out my Peacock holding following a poor trading statement).
Not keen on the ~20% spread but it is an interesting speculative play.
Not keen on the ~20% spread but it is an interesting speculative play.
Ultimate Cynic - 11 Jan 2005 14:03 - 81 of 2037
Someone has spoilt the party at 13:35 today selling 150,000 at 0.85p.
I hope this is not going to spark a selling trend.
I hope this is not going to spark a selling trend.
overgrowth
- 11 Jan 2005 20:37
- 82 of 2037
UC - I don't think a sell of just over 1,000 will affect much lol!
You have to think long term with these guys. The handsome rewards are on their way and will be with us in due course.
If COH achieve their Polish sales targets at the end of March and have turnover to add from the new stores elsewhere, then sales could double by the next results after those, given the aggressive expansion plan in place.
The really good thing is that once the initial capital expenditure of the earlier stores has been returned in profits, we will then start to see a very healthy rise in the sp.
You have to think long term with these guys. The handsome rewards are on their way and will be with us in due course.
If COH achieve their Polish sales targets at the end of March and have turnover to add from the new stores elsewhere, then sales could double by the next results after those, given the aggressive expansion plan in place.
The really good thing is that once the initial capital expenditure of the earlier stores has been returned in profits, we will then start to see a very healthy rise in the sp.
stockpick
- 12 Jan 2005 19:37
- 83 of 2037
COH model is to bring stores on line and make then trade well before expanding into others. It is a sound model and should avoid the issues the UK stores had on high loans for expansion. This is good for business but slow on growth so as overgrowth saya this is a long term steady growth. Must hope that once a reasonable size is reached one of the big boys will come in and push the price up. Lets face it at this level you can not realy loose unless anything realy drastic goes wrong. The only downside is the currency rates which can cost. One other benefit is the weak dollar, If I remember the rent on some stores are paid in dollars so this should drop through to the bottom line.
richie1saunders - 12 Jan 2005 21:09 - 84 of 2037
Yes the weakness of the dollar in recent times should do no harm. I agree that the business model is sound and that with COH it is importnant to consider the long term big picture. Wealth is undoubtedly being created in Eastern Europe. The economies of COH target countries are growing, house prices are rising rapidly, EU investment is starting to hit home. The COH management appear canny enough to exploit this and build a very successful business over the next few years. Let's hope so anyway!
zscrooge
- 13 Jan 2005 19:13
- 85 of 2037
What are the implications of the the City Equities announcement re buys by small shareholder clients?
Do you agree that it is a case of those in the know "getting in" before something is announced or a tip is released?
Is it the case that dilution will lead to increased share value because it is funding additional assets in Czech. & Latvia?
Cheers
Do you agree that it is a case of those in the know "getting in" before something is announced or a tip is released?
Is it the case that dilution will lead to increased share value because it is funding additional assets in Czech. & Latvia?
Cheers
zscrooge
- 13 Jan 2005 19:16
- 86 of 2037
Incidentally, Overgrowth, as we seem to have similar interests (RTD, MDW) any thoughts on NWT?
overgrowth
- 13 Jan 2005 20:55
- 87 of 2037
zscrooge - more retail investors in COH (via CE or elsewhere) will guarantee more liquidity which in turn will reduce spreads and attract more buyers as they see the massive potential of this gem of a company unfolding. Good news in my view.
The placement pays for further rapid growth into new markets - which after all is what all investors are looking for. As I mentioned in an earlier posting, any minor dilutions at this stage to fund capital investment will be irrelevant when the recurring profits start to come through in bigger and bigger chunks with each set of results.
I've just had a quick look at NWT - nothing particularly inspiring stands out right now, though I'll give them some further research when I get a chance. As for MDW - get ready to fasten seatbelts!
The placement pays for further rapid growth into new markets - which after all is what all investors are looking for. As I mentioned in an earlier posting, any minor dilutions at this stage to fund capital investment will be irrelevant when the recurring profits start to come through in bigger and bigger chunks with each set of results.
I've just had a quick look at NWT - nothing particularly inspiring stands out right now, though I'll give them some further research when I get a chance. As for MDW - get ready to fasten seatbelts!
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