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Cooks Coffee Co Ltd on Tuesday reported widened loss and a fall in revenue following delays in store openings and subsequent loss of capital related revenues.
The Auckland, New Zealand coffee focused cafe chain said pretax loss in the financial year to March 31 widened to NZ$3.2 million, about £1.7 million, from NZ$200,000 a year ago.
Revenue fell by 10% to NZ$6.6 million from NZ$7.4 million, which the company said reflected lower than anticipated one off revenue streams from the opening of new stores.
Cooks Coffee said this reflected the combined NZ3.2 million write down of receivables and impairment of goodwill and intangible assets connected to the Triple Two business. The directors assessed ’value in use’ for the Triple Two Business as of March 31, and subsequently impaired goodwill by NZ2.4 million.
Looking forward, the company said that the effects of supply chain disruptions in the third and fourth quarter appeared to be easing, and that the company has a ‘strong pipeline’ of new stores planned for the current financial year.
Chair Keith Jackson said: ‘Whilst the delay in certain store openings, particularly in the Triple Two business and the consequential impact of the loss of capital related revenues, has impacted the group’s financial performance for the year ended March 31, this has been a transformational period for the group.
‘The year has shown the benefits of the resilience of the company’s franchise model and the importance of establishing recurring revenue streams.’
Cooks Coffee Co shares were flat at 22.70 pence each on Tuesday morning in London.
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