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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

ptholden - 05 Jul 2007 22:31 - 1641 of 2037

You should have taken the bet, although I doubt you would ever have collected!

beemer2 - 05 Jul 2007 22:32 - 1642 of 2037

pth

It was just bluster....

jammyjimmy - 06 Jul 2007 07:12 - 1643 of 2037

TRADING STATEMENT, AS PREDICTED!!

Coffeeheaven International PLC
06 July 2007


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


Implementation of Employee Share Ownership Trust, Market Development and Current
Trading





Employee Share Ownership Trust



As part of the Board's desire to broaden share ownership amongst coffeeheaven's
store personnel, the Group has introduced a company wide employee share
ownership scheme that will benefit 50% or more of coffeeheaven's employees (the
'Share Scheme').



In respect of this the Company has issued and allotted, subject to admission,
900,000 new ordinary shares to Capita Trustees Limited, the trustee of the share
scheme, at a price of 1 pence per share. The new ordinary shares will rank pari
passu with the existing ordinary shares of the Company. Application has been
made to the London Stock Exchange for the new Ordinary Shares to be admitted to
trading on AIM ('Admission'). It is expected that Admission will take place at
8.00am on 11 July 2007. Following Admission the total number of ordinary shares
in issue will be 117,278,346.



Market Development



Bulgaria



As of 1 June 2007, the Group increased its equity interest in CHI Bulgaria OOD
from 19% to 100%. The consideration was not material.



Romania



The Group has agreed, subject to contract, to increase its equity interest in
CHIR Cafe S.R.L. from 19% to 85% for a nominal consideration. A number of sites
are under negotiation and one has been contracted. The first coffeeheaven store
is expected to open in Bucharest during the current financial year.



Hungary



A number of sites are under negotiation and the Group expects to open the first
coffeeheaven store in Budapest before the end of the current financial year.



Current Trading



Trading results for the first 3 months of the current financial year to 31 March
2008 are as follows:





Group like- for-like Q1 sales growth +21%.
Total store net sales up 59 % to 3.4M.
67 stores trading at 30 June 2007 across 5 markets.
Net cash and equivalents approximately 5.3M at 30 June 2007.



(All figures shown above are unaudited)



Like- for- like sales growth by market in Q1:


Market Like-for-sales growth

Poland +20%
Czech Republic +28%
Latvia +10%.
Bulgaria +73%
Total stores +21%

*Sales from CHI Bulgaria will be consolidated from June 1 2007. Prior to this
date this business operated as a partnership venture.



Sales growth drivers across central Europe remain:

growing awareness and appeal of the coffeeheaven brand to consumers;

continued product innovation driving additional footfall; and

favourable macro-economic conditions.





The current financial year has started well. Trading in all markets is buoyant
with sales growth trending stronger towards the end of the first quarter.





David10B - 06 Jul 2007 07:39 - 1644 of 2037

Just goes to show how thick some people are. If you knew you were onto a good thing---you just stated you threw 10k away----now thats what I call being real smart.

David10B - 06 Jul 2007 07:48 - 1645 of 2037

WOT more equity issed

jammyjimmy - 06 Jul 2007 08:16 - 1646 of 2037

"Going up"

David10B - 06 Jul 2007 08:19 - 1647 of 2037

SOS----- ALL LIKE FOR LIKE ----but no nett profits!

NOT EVEN A WHISPER OF THEM.

AdieH - 06 Jul 2007 08:22 - 1648 of 2037

Update today sales up 21% for first 3 months of year and new share options for staff (great motivation)... up 1.75p today so far... Looks like most people have called this one right so far... (slight dig)...

David10B - 06 Jul 2007 08:35 - 1649 of 2037

No its up 1.5p AhieH, falling back as it is, and will fall back futher throughout the day.

No mention of Nett profits means overhaeds are still high and taking the cream that should be in shareholder's pockets.

Have a nice day.

cynic - 06 Jul 2007 08:50 - 1650 of 2037

sp is due for a breather as it has risen very sharply over the last couple of weeks ...... there also looks to be a bit of resistance at the current level ..... however, so long as sp remains above 200 or even 25/50 dma, all of which should provide some support, i see no resaon at all why holders should not stay put and await developments.

David10B - 06 Jul 2007 09:12 - 1651 of 2037

And yet another balanced view take a look at this------

Coffee HeavenPosted on July 6th, 2007 in Market whispers.

Numis, the companys stockbroker, is upbeat about todays trading update and says buy up to 66p. Broker adds: These very strong LFLs confirm our view that the branded coffee bar market in Central and Eastern Europe is growing rapidly.
We believe it is still a relatively new phenomenon, so in order to take advantage of this, we believe that COHs strategy of having the first mover advantage and expanding into neighbouring countries is a very successful model.

THE ONLY PROBLEM THAT I HAVE WITH THIS IS THAT OTHER COMPANIES ARE GETTING STRONGER AS WELL!

AND THERE ARE ONLY SO ANY APPLES ON THE TREE.

jammyjimmy - 06 Jul 2007 09:39 - 1652 of 2037

"Depends on the size of the tree of course......Poland is huge, nearly as large as Germany. The rest are pretty big too!!"

cynic - 06 Jul 2007 10:07 - 1653 of 2037

jimmy .... first and foremost, do not get into the quagmire with 10B!

Do not confuse the size of and population of a country with its appetite for coffee shops! ...... Personally, and it is very subjective, this is not a micro-sector that i care for, though that would not preclude me buying if i felt there was sufficient impetus etc behind the share price.

my comment and advice as posted earlier this morning still stands.

AdieH - 06 Jul 2007 10:10 - 1654 of 2037

BKE on the move... +20% today, anyone know anything? Regards

beemer2 - 06 Jul 2007 10:12 - 1655 of 2037

BKE up 30%+ this am...

AdieH - 06 Jul 2007 11:05 - 1656 of 2037

Haven't bought in yet as want to know whats driving it...

cynic - 06 Jul 2007 11:07 - 1657 of 2037

BKE - stupid little company with 0.5m cap ..... if someone sneezes with 20000 shares, the price will rocket/slump

COH - sp heading into o'bought territory so would not be buying at this juncture

jammyjimmy - 06 Jul 2007 11:14 - 1658 of 2037

Cynic

"Do not confuse the size of and population of a country with its appetite for coffee shops!"

I'm not....having worked for a total of 9 years in Poland, the Czech Republic, Germany and currently Sweden, I know for a fact that they all have a huge appetite for coffee....morning, noon and night. That is to say, good coffee, because you have to bear in mind that, (excluding Sweden but including the old East Germany), the quality of the coffee available during the soviet era was, according to the locals, dire to say the least.

Having visited the COH outlets in both Warsaw and Prague a few times I was very impressed with the number of local customers, (not tourists), using both of the outlets. The coffee and service was excellent, fast and the prices were very reasonable, not like the rip-off prices charged in the UK.

My (small) home town in the UK has three major brand coffee outlets in the town centre which seem to be well patronised....so why not elsewhere in eastern europe? Especially if the prices are tailored to suit the local economy (which seem to be on the up and up).

COH sells good coffee in super surroundings.....and the locals love it. They view the 'coffee shop' experience as something modern and very Western European. They are the 'new tourists' and, having visited France, Italy and Spain etc. they want the same at home. My god, you have only to look at the original soviet non-expresso machine era coffee shops that are still in operation to see just what a change there has been. Yes, you can get a coffee in them......if you don't mind waiting 30 minutes!!

The reason I invested in COH was down to purely down to my own personal experience in both Warsaw and Prague. Good job COH....keep it up!!

However, if COH only sold tea, I really would be worried :>)

beemer2 - 06 Jul 2007 11:20 - 1659 of 2037

BKE NOW 44%...

AdieH - 06 Jul 2007 11:34 - 1660 of 2037

Seems someone is building a stake their too beemer... recent RNS, something up wish I had been in but easy to say in Hindsight... SP slipping in COH but too be expected this is a med/long termer for me so glad were over 40p mark again...
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