COFFEE REPUBLIC - 2007 Liberated! It’s all about the brand !

Interesting buy tip in investor chronicle this week regarding coffeeheaven as follows...

"Coffee heaven's shares have risen sharply in 2006, but remain one of the most attractive ways to invest in eastern Europe directly. The company now owns and trades from 59 coffee shops, of which 39 are in Poland, nine are in Czech Republic, eight in Latvia, two in Bulgaria and one in Slovakia.
And in the half year to end- September 2006, sales rose by 28 percent on a like-for-like basis, on which Coffeeheaven reported a normalised profil of £140,000 excluding adjustments for share options, goodwill amortisation, unrealised foreign exchange losses and exceptional charges.
The key country is still Poland. The business there gew 2006 interim saled by £1m to £3.31m following the opening of nine new stores and, according to chairman Ricjard Worthington, the economy is now benefiting from substantial remittanced from Polish workers in the UK. Importantly - and in contrast to some western rivals - Coffeeheaven rents its premises directly and does not franchise, because - so Mr Worthington says - franchis managers often set up rival operations.
Backed up "strong" sales in October and November, broker Seymour Pierce reckons that for 2006-07 as a whole, saled could rise from £6.38m to £9.8m and normalised profits are set to stay in the black. For 2007-08 the broker's turnover target is £14.5m and normalised profits of £500,000."
(Source - Investors Chronical, P.55 "COFFEEHEAVEN (COH)")


Comparisons have been made between COH and CFE, but it's interesting that we are far apart as regards to franchising. How could we stop snidey franchise managers setting up rival operations?

thinboy