COH Coffeeheaven

RNS Number:7177V
Coffeeheaven International PLC
30 April 2007

                        coffeeheaven international plc
                ("coffeeheaven international" or "the Company")

                      Trading Update year to 31 March 2007

coffeeheaven international plc, the AIM-listed speciality coffee bar business
based in central Europe, is pleased to announce the following trading update for
the 12 months to 31 March 2007.

  * Total store net sales up 60% to approximately #10.2M
  * Like- for-like sales growth 27%
  * 65 stores trading at 31 March 2007 across 5 markets
  * Net cash and equivalents # 1.9M at 31 March 2007

(All figures shown above are unaudited)


Sales

Total store net sales (unaudited) for the year ended 31 March 2007 were
approximately #10.2M (2006: #6.4M).

This represents a 60% increase at constant foreign exchange rates, and puts
actual sales ahead of our previously indicated full year target of #9.6M.

Group like-for-like annual sales growth (unaudited) was a robust +27% (2006:
+12% ).

Sales by market and like-for-like sales growth (unaudited) for the year to 31
March 2007 was:

Market                             Sales                                  Like-for-sales growth

Poland                             #7.4M (2006: #5.3M)                    +27%
Czech Republic                     #1.6M; (2006: #0.7M)                   +39%
Latvia                             #0.9M(2006: #0.4M- 10mths)             +16%.
Other*                             #0.3M ( 2006: nil)                     n/a as new markets
Total stores                       #10.2M  (2006: # 6.4M)                 +27%

*Sales from CHI Bulgaria included in "Other" will not be consolidated (the
Company currently operates this business as a partnership venture).

The strong Group like- for- like sales growth reported for the first half year
(28%) was broadly maintained for the full year.  This second half performance is
particularly strong as it is measured against a second half growth in 2006 which
was significantly higher than in the first half.

Sales growth drivers across central Europe remain:

*         growing awareness and appeal of the coffeeheaven brand to consumers.
*         continued product innovation driving additional footfall.
*         favourable macro-economic conditions.


Operating results:

Indicative store operating margins by market which includes the impact of 22 new
stores and two new markets opened in the period are:

Market                              Store EBIT margin (after depreciation)

                                          2007                        2006
Poland                                    20%                          18%
Czech Republic                             7%                          (9%)
Latvia                                    11%                           6%

Indicative normalized Group EBITDA is approximately #0.95M (2006: #0.35M) and is
broadly in line with market expectations. Normalized EBITDA excludes (where
applicable) goodwill, FRS20 adjustments, unrealized exchange gains/losses and
exceptional items.

Net cash balances and equivalents at 31 March 2007 were approximately #1.9M
(2006: #2.9M).

All figures shown under the heading operating results are unaudited.

Stores

The total number of stores trading at 31 March 2007 was 65 - an increase of 22
units in the year  - against our previously indicated year-end target of 63
stores.

Currently the number of trading units by market is as follows:

Poland                 42
Czech Republic         12
Latvia                  8
Bulgaria                3
Slovakia                2
Group:                 67

Bulgaria and Slovakia were new markets opened in calendar 2006. Both represent
significant long term opportunities for the Group.

Across the Group a number of additional new sites have already been secured
(either under or subject to contract) and we are actively seeking further
locations in all markets.

coffeeheaven brand

The coffeeheaven brand continues to build traction and credibility with
customers across central Europe and the Company now commands sector leadership
in both the Polish and Czech markets.

Key to the coffeeheaven's success is our commitment to consistent quality in all
aspects of our products and service.

We were delighted that coffeeheaven baristas 'swept the board' at the recent
Polish round of the World Barista championships by taking all three top places.
The winner, coffeeheaven store manager Lukasz Jura now goes to Japan to
represent Poland in the World Championships.

This achievement demonstrates the passion and expertise we put into
coffeeheaven's training and our aspiration to maintain excellence both in coffee
preparation and customer service.

Competitive environment

As the macro-economic picture across central Europe improves, the competitive
environment in the coffee bar sector is changing.

We are seeing more interest by international coffee bar operators in central
European markets, for the most part in the form of franchise and/or joint
venture arrangements.  Further in some markets local companies have also
announced plans to add coffee bars to their business portfolios.

Consumer education and awareness remains the most significant constraint to
sector growth in our fledgling markets. We believe responsible new entrants will
increase consumer awareness and accelerate sector growth from which
coffeeheaven, as central Europe's market leader, will benefit.

In these changing circumstances, maintaining the integrity and distinctiveness
of the coffeeheaven brand becomes even more important. We believe direct company
ownership to be the most appropriate long-term business model for coffeeheaven
within most markets of central Europe.

Partnership arrangements have served us well in establishing local presence in
non-European Union ('EU') markets. However following the recent entry of
Bulgaria and Romania into the EU, we have agreed with our partners in these
markets that now is an appropriate time to bring coffeeheaven's ownership to
100%. The costs involved with these transactions are not significant.

Future:

The improving macro-economic background in central Europe is feeding through to
consumer confidence and spending. We believe these favourable conditions are
likely to remain for some time to come.

Our new financial year has started well.  Based on present trading conditions
and current exchange rates, we expect to maintain our unbroken historical annual
sales growth rate of around 50%.

We anticipate that the exceptionally strong rate of LFL sales growth we have
achieved (and continue to achieve) will moderate during the coming months due to
the tough comparatives we face.

Present market conditions justify an aggressive store development programme in
the coming year and we expect to enter at least one new market within the
central European region.

In order to support this expansion and our larger store base, we will be making
significant additional investments into the infrastructure of our business.

The strength of the coffeheaven brand continues to ensure that our company is
ideally positioned to benefit from the increasing prosperity of consumers in our
markets.

Your Board and our dedicated management teams across central Europe look forward
to another successful year.

For further information, please see the Company's website, www.coffeeheaven.eu.
or contact:

Richard Worthington,
Chairman and Chief Executive
Tel:                                          +48 606818850 / +44 7973 442 331
E-mail:                                       richworth@aol.com

Simon Turton , Opera Public Relations
Tel:                                          +44 (0)8450 600650/ (0)7976 826004
Email:                                        simon@operapr.com

Iain McDonald, Numis Securities
Tel:                                          +44 (0) 207 260 1000
Email:                                        i.mcdonald@numiscorp.com




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