Coffeeheaven

Well I reckon they are worth keeping:

interims demonstrate the winning touch

coffeeheaven international plc, the British–owned operator of speciality branded coffee/sandwich bars in Poland, today announces its maiden interim results for the six months ended 30 September 2002, showing like–for–like sales growth of 36% and turnover up 98%. The company’s target of 11 stores to be opened by June 2003 has already been exceeded with 12 stores now open.

CHI Polska SA (CHIP), the Group’s only trading company, reported an unaudited pre–tax profit for the second quarter to 30 September 2002. The unaudited pre–tax loss for CHIP for the six months to 30 September 2002 was £14,000 (2001: £257,000 unaudited). The Group pre–tax loss for the six months to 30 September 2002 after UK costs was £87,000.

With Poland’s application for membership of the European Union progressing for early 2004, the country is set for economic growth and a kick–start in inward investment. CHIP’s is now perfectly placed to benefit from its market leadership position and the future looks extremely promising.

Despite current weak economic conditions in Poland, the public’s desire for good coffee in modern surroundings has protected CHIP from any negative impact. Its 12th store was opened in Lodz, Poland’s second largest city but with one of Poland’s highest unemployment rates. However, trading here has been well above expectation and provides a highly encouraging start to CHIP’s national store rollout.

The Company remains on course to achieve the target of 50 stores in Poland by the end of 2006, subject to additional funding being secured. To that end, the company has been through the preliminary stages for a contemplated issue of bonds for public trading in Poland. It is hoped to raise up to 20M Polish zloty (approximately £3.3million) of medium to long term bonds.

"In the last eight months we have doubled the number of coffeeheaven stores to 12 and have still produced a credible financial result,” says CHIP chairman Richard Worthington. “Perhaps most importantly, the outstanding trading performance from our new store in Lodz supports our great confidence in the potential for coffeeheaven throughout Poland. The results are extremely encouraging and reflect the hard work, determination and vision of our dedicated team in Poland."

"If they get the funding from the bond issue maybe the price will improve short term" long term I reckon they could be a little Gold mine, as they appear to be making excellent progress in a poor market in Poland, EU funding should give Poland a good boost as they catch up with infastructure to match the rest of the EU and that has got to be good for CHIP. (Just my veiw anyway)
Merry Christmas.