| CATEGORY: SMALL CAPS NEWS SECTOR: FOOD & DRUG RETAILERS |
Coffee Republic refutes buyout claims |
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Tue 19 Sep 2006
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LONDON (SHARECAST) - Coffee and deli bar operator Coffee Republic today strongly refuted claims that it is suppressing good news in order to stage a management buyout.
“Despite repeated denials by the company, speculation has continued that management plans a management buyout of the company. Let me make this as clear as I can: there was no management buyout plan and there is no management buyout plan,” said chairman Bobby Hashemi.
The statement was made as Coffee Republic reported a net loss of £1.45m for the year to 26 March compared with £1.40m a year ago, on sales down 15% to £14.9m from £17.6m.
There has been some improvement in trading in recent weeks with like-for-like sales having risen 3.6% for the last 8 weeks for the network as a whole.
Coffee Republic added that the restructuring phase of its turnaround plan has now been completed, with January’s £850,000 share placing providing funds to pursue its franchising strategy.
“Depending on the future rate of franchising growth we may need to return to the equity markets for additional funding before the Group is cashflow positive,” added the group.
The company is also looking at a number of new initiatives including a self service bean to cup coffee machine and other opportunities with third parties, although it added that these initiatives are at a very early stage.
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