Coffeeheaven International Posts Pre-Tax Loss For FY09

9/17/2009 6:01 AM ET

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Coffeeheaven Posts Full-year Pre-tax Loss - Quick Facts

(RTTNews) - Thursday, Coffeeheaven International Plc (COH.L: News ), an operator of branded coffee bars in central Europe reported a loss for the year ended March 31. The results reflected increase in depreciation expense that resulted from the opening of new stores acquired with key money, as well as reduced foreign exchange gains.

Loss before taxation was GBP 0.18 million, compared with a profit of GBP 0.45 million in the year-ago period. According to the company, the year-on-year reduction in group profit arises in the main from a 88% increase in depreciation expense or a 56% increase at constant foreign exchange rates, due to a number of new stores being acquired with key money and a fall in foreign exchange gains.

The loss for the year attributable to equity shareholders of the parent company widened to GBP 1.94 million or 1.51 pence per share from GBP 0.26 million or 0.22 pence per share in the year-ago period.

Loss for the year from continuing operations was GBP 0.48 million or 0.37 pence per share, compared with a profit of GBP 0.25 million or 0.20 pence per share year-ago. Loss from continuing operations increased due to an increase in taxation to 0.29 million from 0.198 million year-ago.

Revenue for the period increased to GBP 23.28 million from GBP 14.98 million in the year-ago period.

Coffeeheaven's total international depreciation expenses increased to GBP 1.725 million from GBP 1.107 million year-ago, while total expenses towards store pre-opening increased to GBP 0.211 million from GBP 0.188 million during the comparable period last year.

For the year to March 31, the Group's EUR/ PLN exchange rate was almost fully hedged at 3.65 PLN to 1 EUR.

On a constant currency basis, store sales in Poland from continuing operations for the 12 months to March 31 increased 29% to GBP 17.2 million from GBP 13.3 million using constant exchange rates and like-for-like sales remained flat at 16% year-over-year. In the Czech Republic, sales from continuing operations increased 21% to GBP 3.5 million, compared with GBP 2.9 million while like-for-like sales declined 2% in the same period. Like for like sales from continuing operations were flat.

In Latvia, store sales from continuing operations for the 12 months increased 26% to GBP 1.5 million from GBP 1.2 million in the prior year using constant exchange rates. Like-for-like sales grew 20% in the same period, compared with 10% year-ago. Like-for-like sales from continuing operations grew 24%. During the year, Coffeeheaven closed one store in Bulgaria and Hungary and opened two new stores in Hungary.