Coffee Republic PLC said sales for the six months to Sept 24 fell to 5.4 mln stg from 7.7 mln due to a ‘change in franchising’, as it announced that it had completed its first international franchise deal, in Bulgaria.
The group said operating losses widened to 0.9 mln stg against a loss of 0.7 mln stg one year previously, while net losses rose to 1.3 mln from 0.7 mln as a result of ‘operational cost pressures’ and an exceptional charge of 0.3 mln stg.
The new management of the company said it was aware that the balance sheet shows a deficit of net assets but that business plans were in place to resolve the deficit position.
Coffee Republic added that like-for-like sales have risen 3.4 pct in the 11 weeks since the end of the first half.
Chairman Peter Breach said that Coffee Republic had a ‘bright future’ and that he expects the domestic portfolio to ‘almost double in size’, with overseas outlets also due to start trading.