Caffe Nero must be about the quietest successful stock on the market, very few trades and not many shares around, but..

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Caffe Nero Group PLC
03 February 2004



CAFFE NERO GROUP PLC
Interim Results for the Six Months to 30 November 2003

Caffe Nero Group plc, the leading independent UK coffee house operator of 145
stores which has been voted the top rated brand by consumers for the last four
consecutive years, announces interim results for the six months to 30 November
2003.

HIGHLIGHTS

Turnover up 22% to 23.5m (2002: 19.2m)

Store Profit increased 37% to 4.8m (2002: 3.5m)

EBITDA rose 50% to 2.8m (2002: 1.9m)

Pre-Tax profit* jumped 118% to 1m (2002: 450K)

Positive like-for-like sales of 3%

139 stores in Nov 03; currently 145 stores operating in 47 UK towns and
cities

New stores are being opened at a rate of 3 stores per month and the Group
remains on target to have 160 stores open by the year end (May 2004)

Cash balances of 5.2m at half-year end with a further 3m of banking
facilities available for expansion

Encouraging start to the second half with like-for-like sales up by 5.5%
in December and January

*Pre-amortisation & Exceptionals

Gerry Ford, Chairman of Caffe Nero Group plc, commented:

'I am delighted to report another period of successful expansion for the Group.
The coffee sector continues to be robust and the Caffe Nero brand has
demonstrated both its consistency and versatility. Strong Christmas trading has
resulted in an encouraging start to the second half and the Directors look
forward to another year of enhancing shareholder value.'



3 February 2004

ENQUIRIES:


Caffe Nero Group Plc Tel: 020 7457 2020 (Today)
Gerry Ford Tel: 020 7520 5150 (Thereafter)

College Hill Tel: 020 7457 2020
Justine Warren
Sam Allen




CHAIRMAN'S STATEMENT

Introduction

Caffe Nero Group Plc ('Caffe Nero' or 'the Group') had an encouraging and active
first-half of the year, characterised by strong top-line revenue increases,
significant profitability growth and numerous new store openings. In short, it
was another period of successful expansion for the Group.

Financial Performance

Caffe Nero's turnover continued to increase significantly. In the six months to
30 November 2003, revenue was 23.5m (2002: 19.2m), an uplift of 22% over the
first-half of 2002.

Like-for-like sales were also solid at 3%, recording positive numbers both
inside the greater London area and throughout the rest of the UK.

Store profit jumped 37% to 4.8m (2002: 3.5m). The required increases in
central overheads to support this period of growth were relatively small, which
meant that cash profit (EBITDA) also had a notable upturn. EBITDA rose by 50% to
2.8m (2002: 1.9m) in the first half.

Consequently, Caffe Nero's profit before tax continued to rise. Pre-tax profit
before amortisation of goodwill and exceptionals climbed to 1m (2002: 450k) in
the first-half, a 118% increase over last year. Pre-tax profit post-amortisation
and exceptionals was also significantly higher, coming in at 653k (2002:
155k), which is 321% better than last year.

Cash balances and funding

At the end of the first-half (30 November 2003), Caffe Nero had approximately
5.2m in the bank and another 3m to draw on from bank facilities.

This 8m should give the Group ample funds for its expansion programme in the
second-half.

Of even greater importance is that Caffe Nero is fast approaching the point at
which it can self-finance its UK roll-out. That is to say, by the year-end (May
2004) the Group's internally generated cash profit (EBITDA) should approximately
match its planned UK annual capital expenditure programme (based on opening 35
new stores per annum for the foreseeable future). This will not only be a
notable achievement for Caffe Nero, but it will put the Group in a very sound
funding position.

Stores

New store expansion characterised the first-half of the year. Eighteen stores
were opened, or approximately three per month during the period in review.
These included our first Gatwick store, joint ventures with Selfridges -
Birmingham and Dickens & Jones - London, as well as superb stores in Leeds,
Taunton, Winchester and Bournemouth. This growth further strengthened Caffe
Nero's position as a national brand, giving the Group 139 stores in 44 different
UK towns and cities as of the half year at 30 November, 2003.

Since the half-year, this pace of expansion has continued. Six locations have
been added, taking Caffe Nero's total to 145 stores operating in 47 UK towns and
cities. The Group is currently on target to reach its year end, May 2004, goal
of operating 160 stores throughout the UK.

Current Trading and Future Prospects

Trading in December, including the Christmas period, was very strong, averaging
more than 6.5 percent like-for-like sales. January's trading returned to the
solid pre-December pattern of approximately 4.5 percent same store growth.

Caffe Nero's second-half focus will be similar to the first-half, concentrating
on new store expansion. We continue to believe that it is a good time to
expand. Rents are softening and site availability is superb. Indeed, in the
coming weeks further openings are expected in Manchester, Derby, Edinburgh,
Epsom, Stafford and Teddington.

The remainder of the year looks equally encouraging. At the macro-level, the
coffee sector continues to be robust, and, at the micro-level, it is a great
time to secure new sites. The Caffe Nero brand remains strong - for four years
running it has been the top rated coffee house brand by UK consumers (source:
Allegra Research Reports 2004), and our business model is working very
successfully, with profits from new stores immediately dropping to the
bottom-line. We look forward to another strong six months of enhancing
shareholder value.


Gerry Ford
Chairman



3 February 2004


CAFFE NERO GROUP PLC
Interim Results for the Six Months to 30 November 2003

Group Profit & Loss Account for the six months ended 30 November 2003

Six Months Year Ended Six Months
Ended 30 31 May 2003 Ended 30
November November
2003 2002
Notes Total Total
'000 '000 '000
(unaudited) (audited) (unaudited)

Turnover 23,502 39,396 19,222

Cost of Sales (18,744) (32,096) (15,766)

Gross Profit 4,758 7,300 3,456

Administrative Expenses before depreciation, amortisation and (1,939) (3,124) (1,570)
exceptional items

EBITDA Profit 2,819 4,176 1,886

Administrative Expenses - Depreciation and impairment provision (1,532) (2,538) (1,159)

Operating Profit after Depreciation but before amortisation and 1,287 1,638 727
exceptional items

Administrative Expenses - Amortisation (248) (496) (248)

Administrative Expenses - Exceptional Items 4 (82) - -

Total Administrative Expenses (3,801) (6,158) (2,977)

Operating Profit (after depreciation, amortisation and 957 1,142 479
exceptional items)

Bank Interest Receivable 55 130 55

Interest Payable and Similar Charges

- Interest Payable (359) (706) (332)
- Exceptional item: release of issue costs and other 4 - (47) (47)
fees of debt restructuring
(359) (753) (379)

Profit on Ordinary Activities before exceptionals & taxation 735 566 202

Profit on ordinary activities before taxation 653 519 155

Tax on profit on ordinary activities - - -

Profit for the Financial Period 653 519 155

Earnings per Share - basic (pence) 2 0.98p 0.76p 0.23p
Earnings per Share - diluted (pence) 2 0.94p 0.76p 0.23p



There are no recognised gains or losses other than as shown above



Group Balance Sheet
At 30 November 2003
At 30 At 30
November At 31 May November
2003 2003 2002

(unaudited) (audited) (unaudited)
'000 '000 '000
Fixed assets
Intangible assets 2,990 3,238 3,468
Tangible assets 19,441 16,168 14,662
Investments 854 854 849
23,285 20,260 18,979

Current assets
Stocks 384 340 289
Debtors 1,954 1,341 1,515
Cash at bank and in hand 5,225 5,667 4,969
7,563 7,348 6,773
Creditors: amounts falling due within one year (10,297) (8,203) (6,600)
Net current (liabilities)/assets (2,734) (855) 173
Total assets less current liabilities 20,551 19,405 19,152

Creditors: amounts falling due after more than one year (11,704) (10,562) (10,817)
Provisions For Liabilities and Charges (555) (595) (451)
8,292 8,248 7,884
Capital and reserves
Called up share capital 328 341 341
Share premium 8,794 9,390 9,390
Other reserve 6,249 6,249 6,249
Profit and loss account (7,079) (7,732) (8,096)
Shareholders' funds: Equity 8,292 8,248 7,884


Group Statement of Cash Flows
For the six months ended 30 November 2003
Six months Six months
ended 30 ended 30
November Year ended November
2003 31 May 2003 2002
'000 '000 '000
(unaudited) (audited) (unaudited)
Net cash inflow from operating activities 3,054 3,544 1,453

Returns on investments and servicing of finance
Interest received 55 130 55
Interest paid (422) (642) (302)
Issue costs of new long-term loans (20) (156) (133)
(387) (668) (380)
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (4,584) (2,859) (1,337)
Payments to acquire Coffee Republic Shares (854) (849)
(4,584) (3,713) (2,186)
Acquisitions & Disposals
Purchase of the Business of Aroma Limited - 298 (118)

Net cash outflow before financing (1,917) (539) (1,231)

Financing
Issue of ordinary share capital 61 5 -
Share issue costs - - -
Repurchase of ordinary share capital (580) - -
Costs of repurchase of ordinary share capital (6) - -
New long-term loans 2,000 11,200 11,200
Repayment of long-term loans - (9,113) (9,113)
1,475 2,092 2,087

(Decrease) / increase in cash (442) 1,553 856



Group Statement of Cash Flows (cont.)
For the six months ended 30 November 2003

Reconciliation of net cash flow to movement in net (debt) / funds
Six months Six months
ended 30 ended 30
November Year ended 31 November 2002
2003 May 2003

(unaudited) (audited) (unaudited)
(Decrease) / increase in cash (442) 1,553 856
Cash inflow from increase in loans (2,000) (11,200) (11,200)
Repayment of loans - 9,113 9,113
Issue costs of long-term loans 20 156 133
Change in net (debt) / funds resulting from cash flows (2,422) (378) (1,098)
Other non-cash movements (12) (67) (50)
Movement in net (debt) / funds (2,434) (445) (1,148)
At beginning of the period (5,395) (4,950) (4,950)
At end of the period (7,829) (5,395) (6,098)


Reconciliation of operating profit / (loss) to net cash inflow from operating
activities:

Six months Six months
ended 30 Year ended ended 30
November 2003 31 May 2003 November 2002

(unaudited) (audited) (unaudited)
Operating Profit/(loss) 957 1,142 479
Amortisation 248 496 248
Depreciation 1,532 2,408 1,159
Impairment Provision - 130 -
Decrease / (Increase) in stocks (44) (42) 9
Increase in operating debtors and prepayments (613) (8) (210)
Increase / (Decrease) in operating creditors and accruals 1,014 (169) 75
(Decrease) in provisions for liabilities and charges (40) (413) (307)

3,054 3,544 1,453


Notes to the Interim Financial Report

1. The un-audited interim financial information has been prepared on the
basis of the accounting policies set out in the Group's financial statements for
the year ended 31 May 2003.

2. The basic profit per ordinary share for the six months ended 30
November 2003 is based upon a profit before taxation of 653k (30 November 2002:
155k) and the weighted average number of ordinary shares in issue of 66,482,414
(30 November 2002: 68,110,775).

3. For the six months ended 30 November 2003, the diluted earnings per
share is based on 69,343,131 (30 November 2002: 68,192,075) ordinary shares ,
which is calculated by including the weighted average number of shares 2,860,717
(30 November 2002: 81,300) relating to potential dilution from share options.

4. The financial information herein does not constitute statutory
accounts as defined in Section 240 of the Companies Act 1985. The financial
information for the year ended 31 May 2003 is based on the statutory accounts
for that year. Those accounts, upon which the auditors issued an unqualified
opinion, have been delivered to the Registrar of Companies.

5. Exceptional costs of 82k for the period ended 30 November 2003
relate to the compensation for loss of office of CH Reeve. Exceptional costs of
47k for the period ended 30 November 2002 relate to the release of issue costs
and other fees on the restructuring of the debt facility from Natwest to the
Bank of Scotland


INDEPENDENT REVIEW REPORT TO CAFFE NERO GROUP PLC

Introduction

We have been instructed by the company to review the financial information for
the six months ended 30 November 2003 which comprises the Group Profit and Loss
Account, the Group Balance Sheet, the Group Statement of Cashflows, the Group
Statement of Total Recognised Gains and Losses, and the related notes 1 to 4.
We have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or material
inconsistencies with the financial information.

This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.

Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with guidance contained in Bulletin 1999/4
'Review of interim financial information' issued by the Auditing Practices Board
for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 November 2003.

Ernst & Young LLP
London
2 February 2004

AND

Caffe Nero Group PLC
10 June 2004



CAFFE NERO GROUP PLC

Re: Acquires Sites from Coffee Republic Plc

Caffe Nero Group plc, the leading independent UK coffee house operator which has
been voted the top rated brand by consumers for the last four consecutive years,
announces the acquisition of eight sites from Coffee Republic.

Caffe Nero Group plc ('Caffe Nero') today announces the acquisition of eight
stores from Coffee Republic Plc ('Coffee Republic') for 0.7m in cash as well as
the net proceeds from its 5.7% shareholding in Coffee Republic. Following
completion of the transaction, Caffe Nero will no longer retain any shares in
Coffee Republic.

The acquired sites are situated in principal locations in the south such as
Weymouth, Yeovil, Brighton, Cardiff, Banbury and Bath and represent a
complementary fit with Caffe Nero's existing estate. Whilst these sites are in
good locations, they no longer fit the geographic criteria for the new food
concept at the heart of Coffee Republic's strategy, and as such, are unsuitable
for Coffee Republic's expansion of its Deli format. It is anticipated that the
conversion of these sites to the Caffe Nero format will be completed within the
next two months at a typical fit-out cost of 50k per unit.

The Board of Caffe Nero confirms that trading for the second half of the year
has materially outperformed expectations. Furthermore, we have exceeded our
target of having 160 locations by the Group's May year end and the Directors
look forward to reporting further good progress in September.


Gerry Ford, Chairman of Caffe Nero Group plc, commented:

'The acquisition of this package of a further eight sites provides added impetus
to Caffe Nero's current store expansion. We have also increased our organic
opening rate to approximately four stores a month since the half-year end
(November 2003). Consequently we now have 171 locations across the UK. Recent
new store openings are also performing well, which is encouraging.'



10 June 2004


ENQUIRIES:

Caffe Nero Group Plc Tel: 020 7520 5150
Gerry Ford
Ben Price

College Hill Tel: 020 7457 2020
Justine Warren
Sam Allen

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Personally, I do not have any shares, but my Share Club made a 100% profit and I have continued to watch. Results are due in September and look like they should be pretty good,

Any views

Regards

PTH