Coffee Republic - revolution required?

nectarios

also worth noting that Barclayshare held 3,58% of the shares as at august 2004.
As at 20 september 2005, their holding was 17,136,399 shares, or 4,01%.

would be very 'funny' if Barclays the creditor would let CFE go bankrupt...while Barclays the fund manager is holding shares...


freddy

i studied the increase in debt in the second half (from 1,9 to 2,8 million, ie + 900,000). 80% of the rise is because of rise in working capital ---- NOT because of operating results.

indeed working capital increased 840,000 in 2H.
Mainly because of an increase in debtors (688,000). in fact, this is non-trade debtors (trade debtors are minimal for this cash business).

i have to admit that i don't really get what this increase in non-trade debtors is, but I'm assuming it's related to the sales of leaseholds??

i believe this increase in working capital will be reversed in current FY.

so you'll have as the 3 main cash movements:
- operating loss (cash out --- freddy is pessimistic about the level of the loss, I think it will stay under control, despite the attacks)
- working capital decrease (cash in)
- franchise sales (cash in)


all in all net debt should stay under control for the full year.
The 1st half might see an increase (franchising only started in 2nd half)


--

other point: it's mid-oct and 2 franchise stores have opened. for me, these 2 openings are just the end results of several months of preparation and work (the top of the iceberg), which is still ongoing... i wonder how many contracts are signed already? just these 2? that sounds pessimistic. I'd say 5-6, with
the stores opening gradually the coming months.

---
freddy
you keep asking why has the stock price declined so much?
I ask you: why has the stock gone up so wildly before?